On June 25, 2021, the FATF updated the “black” and “gray” lists of unreliable jurisdictions - that is, whose financial flows are subject to enhanced monitoring by financial regulators in many countries. These country lists are formally referred to as "high risk jurisdictions" and "strategically flawed jurisdictions."
FATF members voted to add Malta to the gray list. This decision can have serious negative consequences for the country's economy.
Maltese Prime Minister Robert Abela, speaking at a press conference, said:
“Although I consider this decision to be unfair, we will continue the reform process because we act with conviction and believe in good governance. We remain committed to pursuing any necessary reforms while maintaining national interests. We will never refuse to cooperate or discourage, but will strengthen our resolve to fight money laundering and the financing of international terrorism. ”
The FATF decision comes amid years of international criticism of Malta's policies, including the sale of passports, and the lack of legal action against officials named in the Panama Papers who set up secret offshore companies.
Malta must improve on three key anti-money laundering missions before it can be removed from the global financial crime watchdog gray-list:
- Demonstrate that ownership information for companies based in Malta is accurate and that authorities take vigorous action when company ownership information is found to be inaccurate.
- Expanding the use of financial intelligence by the State Financial Intelligence Analysis Division to support authorities prosecuting tax and related money laundering cases.
- Focusing FIAU analysis on tax criminal offenses. to obtain information to assist Maltese law enforcement agencies in identifying and investigating cases in accordance with Malta's identified ML risks related to tax evasion.
