White-Collar Crimes Plague Malta, Says European Chief Prosecutor

Malta has been accused of “underreporting, underestimating and often tolerating” white-collar crimes, with a disturbing lack of action being taken to tackle financial fraud. According to European Chief Prosecutor Laura Kovesi, this lack of action is a clear indication that Malta is not taking financial crime seriously enough.

Underreporting and Lack of Action

Despite receiving over 2,200 reports of suspected fraud since its inception from across the EU, Malta has only managed to submit two cases to the European Public Prosecutor’s Office (EPPO), and neither led to any investigations. This shocking lack of action raises serious concerns about Malta’s commitment to tackling financial crime.

The Importance of National Authorities

Kovesi emphasized that it is crucial for national authorities to take action to detect and investigate such crimes. “We cannot just rely on investigative journalists to detect crimes, so the help of national authorities is crucial,” she said. This highlights the need for Malta’s law enforcement agencies to take a more proactive approach in combating financial crime.

Weak Crime-Detection Capabilities

The European Chief Prosecutor also slammed Malta’s crime-detection capabilities related to EU funds, stating that they are virtually non-existent. This lack of effort has led to Malta being placed on the greylist by the Financial Action Task Force (FATF), due to its failure to take credible action against financial crime.

Positive Developments

While there have been some positive developments in recent months, with steps taken to strengthen the police force’s financial crime unit and invest in resources for authorities tasked with monitoring companies and financial services firms, more still needs to be done. The number of prosecutions has increased, and several high-profile individuals believed to be untouchable have ended up in court.

Changing the Culture

It is clear that Malta’s culture of tolerance towards financial crime, particularly tax evasion, must change. White-collar crimes are not victimless, and businesses suffer when they are denied fair competition due to bribery or other forms of wrongdoing. It is time for Malta to take a proactive approach to detecting and prosecuting these crimes, rather than relying solely on investigative journalists to uncover wrongdoing.

Coordination and Responsibility

The different public agencies involved in crime-busting must coordinate and take responsibility for tackling financial fraud, rather than passing the buck around. Only then can Malta hope to turn the tide against white-collar crime and restore trust in its institutions.