Financial Crime World

Malta’s Financial Literacy Efforts Pay Off as EU Removes Jurisdiction from Greylisting

Malta’s Progress in Improving Financial Literacy Rates

VALLETTA, MALTA - In a significant achievement, Malta has made considerable progress in enhancing its financial literacy rates. According to a recent study by the European Commission, only 21% of adults in the country have high confidence in their financial knowledge, which is one of the lowest figures among EU countries.

Banking Sector’s Initiatives for Financial Literacy

Despite these challenges, Malta’s banking sector has been at the forefront of initiatives aimed at increasing society’s financial literacy. These efforts include:

  • Online webinars
  • Mentoring sessions
  • Courses for teenagers on budgeting and personal finance management

The banking sector, along with EY, have also been key supporters of GEMMA (Government Entity for Maltese Retirement and Financial Capability), which provides a one-stop-shop for individuals seeking to enhance their financial literacy.

Simplifying Services and Platforms for Customers

Malta’s banking sector has worked tirelessly to provide simple, seamless, and integrated services and platforms for customers. To address resistance among certain cohorts to adopting digital services, banks have recognized the need for targeted outreach efforts to educate and demonstrate the benefits of digital services firsthand.

Overcoming Challenges in Financial Services Industry

Malta’s financial services industry has faced significant challenges in recent years, including being greylisted by the Financial Action Task Force (FATF) due to concerns over anti-money laundering (AML) and combating financing of terrorism (CFT) measures. However, following significant progress made in improving its AML/CFT regime, Malta was officially removed from the FATF’s list of jurisdictions under increased monitoring earlier this year.

Strengthening AML/CFT Efforts

To strengthen its AML/CFT efforts, banks have invested heavily in implementing and enhancing tools and capabilities used in risk and compliance functions, particularly in financial crime. While this has placed a notable burden on customers, banks are now focused on streamlining processes and improving customer experience, with administrative requirements commensurate with a client’s risk profile.

Balancing Stakeholder Needs

In balancing stakeholder needs, banks must navigate the competing demands of:

  • Customers seeking trustworthy and reliable services
  • Regulators demanding transparency and compliance
  • Shareholders requiring competitive performance

As Malta looks to the future, its financial literacy efforts are set to play a crucial role in driving growth and development in the country.