Malta’s Financial Landscape Under the Spotlight: Persistent Threats to Financial Crime

A recent report by the National Coordinating Committee (NCC) and the Financial Intelligence Analysis Unit (FIAU) has shed light on the vulnerabilities and threats faced by Malta’s financial system. The 2023 National Risk Assessment (NRA) highlights the need for sustained vigilance in combating money laundering, terrorist financing, and other financial crimes.

Key Findings

While there has been a decrease in overall money laundering risk compared to 2018, persisting challenges require proactive adaptation from businesses and authorities alike.
Several key areas of concern have been identified, including:
- Cash and Cash-Based Businesses (CCBs)
- Companies offering high degrees of anonymity
- Emerging risk sectors such as the gaming industry and tax advisors
- Business risk assessment

Recommendations for Mitigating Risks

The NRA emphasizes the critical need for robust customer due diligence and know-your-customer practices to mitigate risks associated with CCBs. It also underscores the importance of:

Identifying beneficial ownership
Leveraging data analytics tools to assess company profiles, compare against public registers, and verify business activities across diverse channels

Expert Guidance for Businesses

Grant Thornton Malta’s experts offer specialized industry expertise and understanding of regulatory nuances to guide businesses in developing effective compliance strategies tailored to their specific vulnerabilities. The firm advocates for a proactive approach that fosters collaboration and knowledge sharing within the financial ecosystem through:

Industry-specific workshops
Involvement with industry-related organizations
Investment in innovation and technology
Commitment to education and awareness

Collaborative Efforts towards a Safer Financial Environment

By working together, authorities and businesses can leverage the insights from the NRA to create a safer and more transparent financial environment for all.