Moneyval has published its 5th round mutual evaluation report for Malta, examining the level of compliance with the Financial Action Task Force 40 recommendations and overall effectiveness of Malta AML/CFT system.
The report finds Malta’s legal framework to be comprehensive and fit for purpose, however analytical capabilities, intensity of supervision and enforcement capabilities are criticized. In particular the report notes that:
- Authorities demonstrated a broad understanding of the vulnerabilities within the system, but certain important factors appear to be insufficiently analyzed or understood
- Malta has a sound legal framework to combat terrorism, but jurisdiction has performed low number of investigations so far, and actions undertaken by authorities are not fully in line with the country’s exposure
- Law enforcement authorities are currently not in a position to effectively and in a timely manner pursue high-level and complex money laundering cases related to financial, bribery and corruption offences
- “Fundamental improvements” are needed with regard to the confiscation of proceeds of crime from money laundering and associated predicate offences
- While Banks and casinos demonstrated a good understanding of risks and apply preventive measures adequately, some non-bank financial institutions and other DNFBPS were unable to articulate how money laundering might occur within their areas
As a result of the above, Moneyval has placed Malta on an enhanced follow-up procedure, with Malta being required to report back in December 2020.