Financial Crime World

Bribery and Corruption in Finance: A Growing Concern in Malta

The scourge of bribery and corruption has become a pervasive threat to businesses operating in Malta, with companies facing significant legal and reputational risks if they fail to implement effective anti-bribery processes.

Under Maltese law, the offering, giving or receiving of any reward for influencing the actions or behavior of an individual is considered bribery and punishable under the Criminal Code. Corruption, meanwhile, involves the commission of a dishonest action by a person or body entrusted with authority, done to benefit from private gain.

Consequences of Bribery and Corruption

Individuals involved in bribery face imprisonment sentences varying depending on the stage of bribery reached, ranging from offering, acceptance and failure to fulfill actions. Companies too may be liable for fines, which can range from €20,000 to €2 million, if an officer or representative is found guilty of bribery.

The Importance of Proactive Measures

As a result, companies must take proactive steps to detect whether they are being exposed to these illegal activities. It is the ultimate responsibility of management to identify and evaluate all risks that make a company vulnerable to acts of bribery and corruption.

PwC’s Financial Crime Compliance Team

For those companies without systematic compliance procedures in place, implementing robust procedures can be time-consuming and resource-intensive. This is where PwC’s Financial Crime Compliance Team comes in - we can help prepare, respond and emerge stronger from financial and economic crime disruption.

Our team can assist with:

  • Conducting anti-bribery and corruption risk assessments
  • Due diligence exercises
  • Drafting clear policies and procedures
  • Implementing the anti-bribery framework
  • Ongoing monitoring and review

Creating a Culture of Honesty and Integrity

By working with PwC, companies can familiarize themselves with leading industry practices and frameworks in line with applicable legislation to achieve a culture of honesty and integrity.

Conclusion

With bribery and corruption becoming an increasingly significant risk to all legal and physical persons, it is crucial that companies take proactive steps to prevent these illegal activities from occurring in the first place. By working together, we can create a more transparent and accountable business environment in Malta.