Malta Takes Steps to Boost Financial Crime Prosecutions
Malta has embarked on a major overhaul of its financial crime prosecution strategies, aimed at uncovering and prosecuting large-scale, complex cases more effectively. The country’s Ministry of Finance has established a new Financial Organized Crime Agency to investigate and prosecute serious money laundering cases, while also enhancing the powers of the Asset Recovery Bureau to freeze illicit assets.
International Pressure
Malta is facing mounting pressure from international authorities over its anti-money laundering (AML) compliance defenses. In November, the European Commission launched a crackdown on Luxembourg and Malta for failing to implement bloc-wide financial crime regulations. This move came after recent improvements in Spain, which had previously been subject to similar actions.
Criticisms of Financial Intelligence Unit
Malta’s financial intelligence unit has faced criticism for having lax supervision of the banking sector, with European authorities calling for improved oversight and enforcement. The country’s FIAU has given Pilatus Bank, which was shut down by the European Central Bank in November over fraud and money laundering allegations, positive reviews for AML program functions.
Measures to Improve AML Oversight
To address these gaps, the European Commission has called on Malta to engage in a range of vital measures to improve AML oversight, analysis, and processes. These include:
- Improving risk assessment methodologies
- Enhancing monitoring and supervisory strategies
- Revising sanctioning procedures
Minister’s Commitment
The country’s Minister of Finance, Edward Scicluna, stressed that organized financial crime is an international scourge that requires a joined-up approach between countries. Malta is determined to play its part in eradicating this problem by throwing more resources at the issue and enacting legal and regulatory reforms.
Boosting Resources for Regulators and Law Enforcement
The changes are designed to boost the resources available to regulators and law enforcement agencies, allowing them to investigate and prosecute financial crimes more effectively. The new measures cover three main areas:
- Complex money laundering cases
- Speeded-up case closures
- Seized or frozen assets
Separation of Duties
Separation of duties is also being implemented through the State Attorney General’s Office, which will be responsible for prosecuting financial crimes. This move aims to de-couple police investigators from prosecutors, allowing for more specialized and intensive financial crime investigations.
Online Gaming Industry Oversight
Malta has taken steps to increase oversight of its online gaming industry, which may serve as a potential conduit for money laundering activities. Authorities have also taken measures to ensure that the country’s gaming industry does not become targeted by crime organizations.
Commitment to Eradicating Financial Crime
According to Scicluna, “We are throwing ever more resources at the problem and enacting legal and regulatory reforms to transform the fighting capabilities of our institutions and regulators.” Malta is determined to play its part in making financial crime eradication happen.