Malta placed under increased monitoring by FATF

Malta has been placed under increased monitoring by the Financial Action Task Force (FATF) following a decision taken by the FATF virtual Plenary meeting held today. This decision is one which is unprecedented, as it was agreed despite Malta having zero non-compliance ratings and only three low level of effectiveness ratings.

A follow-up report published by MONEYVAL last month showed that Malta has improved measures to combat money laundering and terrorist financing, thus demonstrating significant progress in the level of compliance with the FATF Standards. MONEYVAL’s report confirmed that Malta no longer has “non-compliant” or “partially compliant” ratings.

Following the publication of the MONEYVAL Evaluation Report in 2019, the Maltese government implemented substantial changes to bolster further the rule of law in Malta, and in parallel, ensure institutions have their systems and structures in place to implement justice in Malta in an effective manner. This was done by identifying the risks, establishing preventive measures, and facilitating international cooperation.

FATF rules of procedure state that decisions are taken by consensus and any three members may object.

FATF rules of procedure state that decisions are taken by consensus and any three members may object.

According to the FATF, when a country is placed under increased monitoring, it means it has committed to resolve the identified strategic deficiencies within agreed timeframes and will therefore be subject to increased monitoring by the body.

Iceland was greylisted in 2019 with six “low levels of effectiveness” and “two non-compliance points” and was removed from the list a year later. It is understood that the United States has four ratings that are “non-compliant”, but despite this, the country has not been greylisted.

FATF, the global money laundering and terrorist financing watchdog, was established in 1989 during the G7 Summit that was held in Paris that year to examine and develop measures to combat money laundering.

The FATF Plenary is made up of 37 countries, the European Commission and the Gulf Cooperation Council.

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Victor Diacono
Victor Diacono
2 years ago

Is it, at least in part, No SOFA No Party?

Godfrey Casha
Godfrey Casha
2 years ago

I am no financial expert, however I feel that now, that my country has been greylisted, I should be told what exactly Malta is to correct to be allowed back, so to speak.

Dr. Mark Said
Dr. Mark Said
2 years ago

WE FADE TO GREY.
Pop music lovers might remember Visage’s hit ‘We fade to grey’.
So Malta’s money laundering and terrorist financing international standards that aim to prevent these illegal activities have now faded to grey, thanks to FATF.
MONEYVAL’s system of peer review is based on the FATF model. However, the process of self-assessment and mutual evaluations are undertaken against a more extensive set of anti-money laundering and counter-terrorism financing standards. Apart from the FATF Standards, MONEYVAL assesses the compliance of its jurisdictions with the international conventions included therein, as well as the EU legislation adopted in this respect. To be noted is the fact that MONEYVAL is an associate member of FATF. Incidentally, the latter’s current President is Dr Marcus Pleyer of Germany.
Malta’s greylisting was baffling, to say the least, and it is utterly incomprehensible how we managed to pass MONEYVAL’s stricter assessment and evaluation whereas we failed to leave our mark with FATF. Undoubtedly, political lobbying influenced FATF’s final illogical and unreasonable decision.
Coupled with that, and most ironically, there was that constant spate of anti-Malta campaign and negative influence within most international institutions orchestrated by no other than a small number of Maltese citizens claiming to have Malta’s national interests most at heart.
Yet Malta will work itself out of the greylist area in no time at all.

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