Financial Crime World

Money Laundering Surges in Malta: A Look into Prevention and Prosecutions

By: [Journalist Name]

Overview of Money Laundering in Malta

Money laundering, an economic crime that conceals the origins of illicitly gained proceeds, has been a growing concern in the Mediterranean island nation of Malta. Though Maltese law, with the Prevention of Money Laundering Act (PMLA) of 1994, targeted predicate offenses, a broader approach was needed.

Money laundering is, by its very nature, difficult to prove, for if the money launderers have already done their job, the money appears to be clean. (US Supreme Court Justice Kennedy)

The Maltese legal framework aims to counter money laundering and terrorism financing through the following measures:

  1. PMLA of 1994
    • Initially focused on specific predicate offenses
    • Amendments like LN176 of 2005 extended predicate offenses
  2. Member of MONEYVAL
  3. FATF recommendations and international conventions

Understanding Money Laundering

According to Maltese law, money laundering:

  1. Involves the conversion or transfer of property derived from criminal activity
  2. Can include converting cash to immovable property
  3. Requires intentional concealment or disguise of proceeds

All Crimes Approach

The Maltese anti-money laundering regime follows an ‘all crimes’ approach, investigating potential money laundering activities beyond EU regulations.

Money Laundering Investigations

  1. executive police responsible for investigations
  2. Intelligence reports from the FIAU
  3. Self-reporting and reports from authorities
  4. Information from foreign law enforcement

Role of the Financial Intelligence Analysis Unit (FIAU)

  1. Receives and assesses reported transactions
  2. Determines reasonable suspicion
  3. Shares intelligence with law enforcement and Attorney General
  4. Filters between subject persons and law enforcement agencies

Money Laundering Prosecutions

Money laundering prosecctions can be:

  1. Self-laundering
  2. Stand-alone or autonomous
  3. Third-party laundering

Prima Facie Case and Precedence

In Maltese courts:

  1. Prima facie case: prosecution required to prove reasonable grounds for believing involvement in the crime
  2. Inconsistent application in money laundering cases
  1. Debate on whether charges must be brought at the same time as predicate offense
  2. Outcome influences the way money laundering cases are prosecuted in Malta