Malta: Financial Sector Assessment Program-Technical Note-Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)
IMF Staff Country Reports, November 21, 2019
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- Malta: Financial Sector Assessment Program-Technical Note-Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)
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Bibliographic details
- Published: November 21, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513520711.002
Overview and Purpose
- Technical note summarizes findings of a targeted review of several aspects of Malta’s progress in addressing AML/CFT vulnerabilities in the financial sector, specifically the banking sector.
- Publication date: November 21, 2019.
- Pages: 24; Volume: 2019; Issue: 345; Series: Country Report No. 2019/345.
- DOI: https://doi.org/10.5089/9781513520711.002; Stock No: 1MLTEA2019004; ISBN: 9781513520711; ISSN: 1934-7685.
Key Findings
- Malta has strengthened AML/CFT requirements for banks in recent years.
- Implementation of AML/CFT preventive measures by banks should be improved further.
- Important milestones have been implemented by:
- Financial Intelligence Analysis Unit (FIAU)
- Malta Financial Services Authority (MFSA)
to enhance AML/CFT supervision since mid-2017.
- Recent AML/CFT violations raise doubts about the capacity of supervisory authorities to effectively identify and address AML/CFT compliance breaches.
Deficiencies Identified
- Weaknesses in the implementation of preventive measures at banks, particularly concerning high-risk activities and clients.
- AML/CFT supervision has not consistently:
- Evaluated banks’ risk mitigation models stringently.
- Ensured that customer due diligence requirements are properly followed.
- Applied corrective actions and sanctions when deficiencies were identified.
Policy Recommendations and Strategic Priorities
- Adopt a multiprong strategy to address identified deficiencies.
- Focus areas:
- Develop more effective AML/CFT enforcement capabilities.
- Ensure banks apply appropriate preventive measures in relation to high-risk activities and clients.
- Strengthen AML/CFT supervision to:
- More stringently evaluate banks’ risk mitigation models.
- Ensure compliance with customer due diligence requirements.
- Apply corrective actions and sanctions when deficiencies are identified.
Subjects and Keywords (as listed)
- Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banking, Crime, External balance assessment (EBA), External position, Financial Sector Assessment Program, Financial sector policy and analysis, Legal support in revenue administration, Revenue administration.
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), authority, bank, CFT authorities, CFT compliance examination, CFT oversight, CFT policy, CFT requirements, CFT review, CFT supervision, CFT supervisor, CFT violation, CR, Europe, External balance assessment (EBA), Financial Sector Assessment Program, ISCR, Legal support in revenue administration, Malta, proceeds, TF risk.
International Monetary Fund. Monetary and Capital Markets Department "Malta: Financial Sector Assessment Program-Technical Note-Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT)", IMF Staff Country Reports 2019, 345 (2019).
Content in this bundle
- 1mltea2019004