Financial Intelligence Analysis Unit Reveals Trends in Money Laundering and Tax Crimes
The Financial Intelligence Analysis Unit (FIAU) has released a report highlighting the modus operandi of money launderers and tax criminals in Malta. The report provides valuable insights into the trends and techniques used by these individuals and entities.
Who’s Involved?
According to the report, natural persons were involved in 74% of instances, while legal persons made up 26% of these cases.
Where are the Cases Originating From?
- 71% of cases had local origins, with natural or legal persons identified as being involved.
- 31% of cases had international origins, indicating a significant level of cross-border activity.
Common Methods of Money Laundering and Tax Evasion
The report highlights the use of banking activities to facilitate money laundering and tax evasion as the most common modus operandi, accounting for approximately 78% of all Suspicious Transaction Reports (STRs) linked to possible tax-related proceeds between January 2015 and December 2019.
Red Flags
The report identifies several red flags that may indicate money laundering or tax evasion, including:
- Unexplained or inconsistent transactional activity
- Unwillingness to cooperate with requests for information
- Complex company structures
- Transfers to high-risk jurisdictions without economic rationale
Amounts Involved
In terms of amounts involved, approximately 50% of cases reviewed reported the amount of suspected illicit funds as unknown. However, when the amount was known, it ranged from:
- EUR 0-100,000 (20%)
- EUR 100,001 to 1,000,000 (16%)
- Over EUR 1,000,001 (14%)
Conclusion
The FIAU’s findings are based on reviews of international requests for information received from other financial intelligence units around the globe. The report serves as a valuable tool for financial institutions, law enforcement agencies, and other stakeholders in the fight against money laundering and tax evasion.