Malta’s Anti-Terrorism Financing Regulations Receive Mixed Assessment
A recent evaluation by the Financial Action Task Force (FATF) has revealed that Malta’s anti-terrorism financing regulations are a mixed bag, with some areas deemed compliant while others require improvement.
Progress and Compliance
According to the assessment, Malta has made significant progress in implementing several key requirements:
- Money Laundering Offence: Malta has implemented a money laundering offence.
- Confiscation and Provisional Measures: The country has established confiscation and provisional measures related to terrorism and terrorist financing.
- Targeted Financial Sanctions: Malta has implemented targeted financial sanctions related to terrorism and terrorist financing.
- Risk Assessment and Regulation: The country assesses risk and applies a risk-based approach, and regulates and supervises financial institutions.
Areas for Improvement
However, Malta fell short in other areas:
- National Cooperation and Coordination: Malta was deemed “partially compliant” in national cooperation and coordination.
- Secrecy Laws: The country’s secrecy laws may hinder international cooperation.
- Regulation of DNFBPs: Malta’s regulation and supervision of designated non-financial businesses and professions (DNFBPs) were deemed partially compliant.
Additional Areas for Improvement
The FATF evaluation also highlighted areas where Malta needs to improve:
- Transparency and Beneficial Ownership: The country should improve transparency and beneficial ownership of legal persons.
- Regulation of DNFBPs: More work is needed in regulating and supervising DNFBPs.
- International Cooperation: Malta’s financial intelligence units and law enforcement agencies are largely compliant, but more work is needed in the area of international cooperation, particularly with regards to mutual legal assistance.
Stakeholder Response
The assessment has been met with a mixed response from stakeholders:
- Some have called for further improvements to ensure effective implementation of anti-terrorism financing regulations.
- Others have praised Malta’s efforts in implementing anti-terrorism financing regulations and have highlighted the progress made so far.