Malta Seen as Hotbed for Financial Crime, New Report Reveals
Malta has been identified as a hotbed for financial crime in a recent report, which highlights the evolving landscape of financial crime in the country. The report reveals that residual risks in most sectors have decreased over the past five years, but the country’s financial institution sector remains a major concern.
Financial Institution Sector Remains a Major Concern
The financial institution sector in Malta is considered to have a medium-high level of risk due to a lack of maturity in anti-money laundering and combating the financing of terrorism (AML/CFT) frameworks among licensees. This suggests that the sector may be more vulnerable to financial crime than previously thought.
Other Sectors with Increased Risk
The land-based gaming sector has also seen an increase in residual risk from medium-low to medium risk, driven primarily by a recalibration of inherent risk. This is a cause for concern, as it indicates that the sector may be more susceptible to financial crime.
Key Takeaways
- Ten sub-sectors have seen their residual risk reduce over the past five years.
- Three sectors remain unchanged, with the financial institution sector being a major concern due to its size and exposure to terrorist financing, proliferation financing, and targeted financial sanction risks.
- The land-based gaming sector has increased in residual risk from medium-low to medium risk.
Recommendations for Organizations
Subject persons are encouraged to take into account the findings of risk assessments issued by regulatory bodies and authorities when evaluating their organization’s inherent risk. This includes considering the impact on business areas such as:
- Banking
- Credit
- Transaction monitoring rules
Staying Vigilant Against Financial Crime
The report highlights the need for organizations in Malta to remain vigilant in the face of evolving financial crime trends. Deloitte, a leading professional services firm, is urging subject persons to ensure that their ML/TF risk management framework remains up-to-date and calibrated to provide an accurate representation of their organization’s risk exposure.
Expert Assistance
Deloitte’s financial crime team can assist organizations in evaluating the impact of the latest sectoral risk assessment on their business risk assessment. By working with experts like Deloitte, subject persons can ensure that they are better equipped to navigate the complex regulatory landscape and minimize their exposure to financial crime.
Conclusion
The report emphasizes the importance of proactive approach to managing financial crime risks in Malta. Organizations must remain vigilant and take steps to mitigate these risks by ensuring their risk management framework is up-to-date and calibrated accurately. By doing so, they can minimize their exposure to financial crime and stay ahead of evolving trends.