Malta seems to be moving in the right direction with regard to anti-money laundering measures, and there is now more confidence that the country will pass the upcoming Moneyval test.

Both the Malta Financial Services Authority (MFSA) and the Financial Intelligence Analysis Unit (FIAU) seem to have done a very good job at upping their game and investing where needed.

Malta’s economy depends heavily on our growing financial services but, over the past few years, the sector’s reputation took a savage beating over reports and claims of money laundering, especially when it comes to gaming companies. Many companies have been linked to the mafia, with reports saying that these firms act only as a front for money laundering.

The problem was that Malta nurtured a lucrative sector but was initially unprepared for the challenges that it would bring with it in terms of financial crime.

The country has been warned several times that, unless it shows that it is in control of the situation, it could face sanctions, which could spell disaster for the sector. Last year, Moneyval, a Council of Europe body, gave Malta a fail grade and gave the country until October of this year to get its act together, or else risk being grey listed.

The MFSA has made anti-money laundering a top priority and has launched an entire strategy in this regard. It has brought in foreign financial crime experts and, last year, it carried out an “unprecedented” total of 25 anti-money laundering specific site inspections.

In an interview with this newspaper, FIAU boss Kenneth Farrugia said the unit will have addressed all of the recommendations put forward by Moneyval by August, latest September. He also highlighted how the FIAU has become more efficient, reducing the time for an analysis by twothirds, and starting a record number of investigations. Last year, the FIAU sent 61 cases to the police for further investigation.

Unfortunately, however, it seems that the police are still lagging behind on financial crime. The Malta Police Force recently told this newsroom that it has boosted its financial crime investigations unit, and is currently engaging civilian analysts, but the prosecution figures are worryingly low.

Data tabled in Parliament recently showed that, in 2019, only 11 people were charged with money laundering crimes. There is, however, no data on the actual number of people who were successfully prosecuted. One hopes that the numbers have risen over the past few months and that, like the FIAU and the MFSA, the police will reach their Moneyval targets by the deadline.

The thing is, however, that this is not just about increasing prosecution numbers. The police in Malta have a reputation of closing an eye to cases of corruption and financial crime involving politicians. The lack of action against government members over the past seven years is part of the reason why Malta’s reputation has suffered greatly, and why international entities, like Moneyval, are watching us with great interest.

The latest round of revelations from court has brought Malta back under the spotlight and we seem to be heading towards ‘Part 2’ of the drama that started in November of last year.

If we truly are clamping down on financial crime, we need to do so across the board. If we only prosecute the small fish and let the big ones get away, our reputation will remain in tatters, and the international watchdogs will not go away.