Financial Crime World

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Malta’s Financial Crime Trends Revealed: A Comprehensive Look at Money Laundering and Terrorist Financing Risks

The National Risk Assessment (NRA) for 2023 has been published, providing a detailed analysis of Malta’s exposure to threats and vulnerabilities linked to money laundering, terrorist financing, proliferation financing, and targeted financial sanctions.

Overview

The NRA is a crucial tool for subject persons, offering valuable insights into existing risks and enabling them to adapt their compliance approach and risk mitigation strategies. The assessment was coordinated by the National Coordinating Committee on Combating Money Laundering and Funding of Terrorism (NCC), in collaboration with government authorities and representative bodies from the private sector.

Key Findings

The report highlights several positive trends, including a decrease in Malta’s overall money laundering residual risk compared to 2018. Improvements were registered across various sectors, including:

  • Legal persons
  • Trust and company service providers
  • Banking
  • Investment services
  • Accountants and auditors
  • Gaming
  • Virtual financial assets service providers

However, other sectors such as:

  • Financial institutions
  • Real estate agents
  • Dealers in high-value goods
  • continue to pose a higher risk of money laundering.

Specific Risks Identified

The report identifies specific risks associated with:

  • The abuse of cash and cash-based businesses
  • The use of Maltese registered companies lacking sufficient links to Malta
  • Complex corporate structures
  • The acquisition of high-value movable and immovable property
  • The laundering of proceeds from drug trafficking, foreign organized crime, and fraud (including cybercrime)

Residual Risks

Residual risks associated with terrorism financing, proliferation financing, and targeted financial sanctions were found to be moderate. The report emphasizes that all subject persons must consider these risks as part of their risk assessment process and review and update their controls, policies, and procedures accordingly.

Availability of the 2023 NRA

The 2023 NRA is now available for download, providing a crucial resource for those operating in Malta’s financial sector.