Financial Crime World

Malta Tightens Financial Crime Reporting Requirements to Combat Money Laundering and Terrorist Financing

Malta has taken significant strides in combating money laundering and terrorist financing by strengthening its financial crime reporting requirements. This commitment is reflected in a recent report by the MONEYVAL agency, which highlights the country’s efforts to prevent these crimes.

A History of Anti-Money Laundering Measures

The Prevention of Money Laundering Act (PMLA) was enacted in 1994, establishing the Financial Intelligence Analysis Unit (FIAU) as the national institution responsible for preventing money laundering and terrorist financing. Since then, Malta has implemented various measures to fight financial crimes, including:

  • The Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR)
  • The Proceeds of Crime Act (POCA)

Regulatory Oversight

The Malta Financial Services Authority (MFSA) ensures the effectiveness and fairness of regulation procedures. The MFSA and FIAU jointly conduct AML/CT audits in Malta, while the AML/CFT Co-Ordination Committee has been established to prevent money laundering and terrorist financing.

Compliance with International Standards

Malta’s proactive approach to regulating virtual assets, including prominent cryptocurrencies, has led to an elevation from “partially compliant” to “largely compliant” status. The country has achieved full compliance with twelve out of the 40 FATF Recommendations, signifying adherence to international AML/CFT standards.

Obligations for Financial Institutions

Financial institutions in Malta must comply with the Maltese AML regulations, as implemented through PMLA, PMLFTR, and POCA. Organizations must:

  • Meet Customer Due Diligence (CDD) requirements
  • Report suspicious transactions to authorized units
  • Employ a Money Laundering Reporting Officer

Penalties for Non-Compliance

The FIAU is responsible for issuing penalties to non-compliant organizations and individuals who get involved in financial crimes. In 2022, the agency issued more than €3.1 million in fines to entities that had breached PMLA.

International Cooperation

Malta’s financial crime reporting requirements are designed to be compatible with international standards set by the Financial Action Task Force (FATF) and the European Union (EU). The country’s AML regulations aim to:

  • Prevent money laundering and terrorist financing
  • Ensure the stability of its financial sector

By strengthening its financial crime reporting requirements, Malta continues to demonstrate its commitment to combating money laundering and terrorist financing. This proactive approach ensures a safer and more secure financial environment for both individuals and institutions.