Financial Crime World

Malta’s National Risk Assessment Highlights Financial Crime Risks, Calls for Enhanced Mitigation Measures

The National Coordinating Committee on Combating Money Laundering and Funding of Terrorism in Malta has published a revised version of the country’s National Risk Assessment (NRA), identifying key risks and vulnerabilities related to money laundering, financing of terrorism, and other financial crimes.

Key Findings and Recommendations

  • The 2023 NRA marks a significant development as it now also considers risks linked to the financing of proliferation and targeted financial sanctions.
  • The assessment aims to provide a common understanding among stakeholders on the threats posed by money laundering (ML), financing of terrorism (FT), financing of proliferation (FP), and targeted financial sanctions (TFS).
  • The NRA serves as a critical tool for ensuring that risk-based mitigation measures are implemented in line with identified risks, priorities, and recommendations.

Progress and Challenges

  • Malta has made significant progress in reducing its money laundering residual risk level across most industries.
  • However, financial institutions, certain designated non-financial businesses and professions, and legal persons remain at a higher risk level - Medium High.

Call to Action

  • Subject persons are advised to consult the risks and corresponding mitigation measures, as well as recommendations outlined in the report to update their Business Risk Assessment (BRA).
  • Ganado Advocates Regulatory Advisor Jonathan Camilleri is available to provide clarification on the findings and assist with updating BRA’s in line with the NRA’s results.

Importance of Collaboration

  • The revised NRA serves as a crucial step in ensuring that Malta’s national Anti-Money Laundering/Combating Financing of Terrorism framework remains proactive in responding to emerging risks and gaps.
  • As the country continues to navigate an increasingly complex financial landscape, the publication of this report underscores the importance of collaborative efforts among government authorities, private sector stakeholders, and law enforcement agencies to combat financial crime effectively.