Malta Faces Financial Crime Threats: Types of Financial Crimes and How to Mitigate Them

Financial crime, particularly money laundering and terrorist financing, has been a persistent concern for regulators, governments, and enforcement agencies worldwide over the past decade. The methods used by criminals to launder proceeds of crimes and fund illicit activities have become increasingly sophisticated, prompting regulatory authorities to increase their scrutiny of financial institutions.

The Threat of Financial Crime

Malta, like many other jurisdictions, is aware of the need to evolve its systems and processes to prevent financial crime. It recognizes that there is room for improvement in protecting the system from flows of illicit money. Financial crime is a global phenomenon, and weaknesses in the system as a whole enable it to thrive.

Types of Financial Crimes

• Money Laundering: The process of making illegally obtained funds appear legitimate by transferring them through various financial institutions or transactions.
• Terrorist Financing: The provision of funds to individuals or organizations engaged in terrorist activities.

Mitigating the Threat

In an effort to assist Maltese entities in combating financial crime, the Malta Financial Services Authority (MFSA) will be hosting a half-day refresher session focused on financial crime risk mitigation for key personnel from credit institutions, trustees, fiduciaries, and other relevant organizations. The session is mandatory for:

• Money Laundering Reporting Officers (MLROs)
• Nominated Persons
• Senior Compliance Officers
• Other Executives

Agenda Highlights

The agenda includes modules covering the basics of financial crime, its manifestation in Malta, and the MFSA’s expectations for risk mitigation. Participants will also learn about:

• The authority’s approach to conducting financial crime-related inspections
• Opportunities to address specific questions and concerns

Key Takeaways

• Financial crime is an evolving threat that requires constant vigilance from entities operating in Malta.
• The MFSA’s commitment to supporting Maltese entities in combating financial crime is crucial in safeguarding the integrity of the country’s financial system.

Conclusion

The MFSA’s refresher session serves as a timely reminder of the importance of remaining proactive in preventing money laundering and terrorist financing. By understanding the types of financial crimes, their manifestations, and the necessary mitigation measures, Maltese entities can play a critical role in safeguarding the integrity of the country’s financial system.