Financial Crime World

Financial Crimes Definition in Malta: Experts Weigh In on Strengthening Anti-Money Laundering Regime

As the Maltese financial services industry continues to grow, experts are sounding the alarm on the need for improved anti-money laundering (AML) measures. In this article, we will explore the current state of AML in Malta and what needs to be done to strengthen the regime.

The Need for Improved AML Measures

Federica Taccogna, a strategic adviser to the Malta Financial Services Authority (MFSA) on financial crime, believes that the industry must mature with its regulatory arrangements. She emphasizes the importance of understanding the dynamics of financial crime and how it can be prevented in practice.

  • “The industry needs to embrace the fact that being regulated comes with obligations, and therefore costs,” she said.
  • Regulators need to continue to invest in resources and efforts into educating and guiding the industry and taking action against non-compliance.

Malta’s Poor Evaluation by Moneyval

Malta’s recent poor evaluation by Moneyval, the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism, has raised concerns about the country’s AML regime. While Malta implements laws and regulations that are not exclusively its own making, Taccogna believes that it is tempting to see financial crime as a Maltese problem only.

  • “The challenge for smaller jurisdictions such as Malta is to adopt a proportionate approach and striking the right balance between dealing with legacy, laying the foundations for a safe future and continuing to remain attractive,” she said.
  • This means sourcing the right skills and expertise to deal with the issue competently.

Consequences of Not Improving AML Framework

Taccogna expressed concern that if not enough progress is made in improving Malta’s AML framework, the country could be blacklisted by Moneyval. She emphasized the importance of a thorough review of current industry participants to limit the risk of censure.

Support for Strengthening AML Regime

In her role as strategic adviser to the MFSA, Taccogna has seen firsthand the challenges facing the country in tackling financial crime. “The fact that I am here and the support FTI is providing the MFSA and FIAU is an indicator that investment is being made to address the financial crime problem in Malta,” she said.

Conclusion

However, Taccogna believes that more needs to be done to strengthen Malta’s AML regime. She noted that the country must adopt a proportionate approach and strike the right balance between dealing with legacy issues, laying the foundations for a safe future, and continuing to remain attractive.

Upcoming Event: Finance Malta’s 12th Annual Conference

Finance Malta’s 12th annual conference, “Malta: A Platform for Innovation,” will be held on June 5 and 6 and will feature sessions on fintech, AI, and cybercrime. The event is expected to bring together experts from across the financial sector to discuss the latest trends and challenges in the industry.

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