FIAU tells financial services industry not to impose stringent grey list measures on locals

The Financial Intelligence Analysis Unit (FIAU) says financial services practitioners are not required to use more stringent measures to assess potential clients or business connections if they are Maltese or resident in Malta, despite the decision by the FATF to include Malta in its greylist of non-reputable financial jurisdictions.

The anti-money laundering unit has published on its website an “interpretive note” for the industry on how to deal with the additional anti-money laundering obligations that come along with greylisting by the FATF.

The FATF yesterday outlined its reasons for placing Malta, the only EU country ever included, on its grey list, citing lack of transparency on ultimate beneficial owners of companies and weak financial intelligence on tax crimes as the main serious strategic deficiencies of the island’s jurisdiction.

The international money laundering watchdog said its report identified a “large number of serious issues regarding risks” in the country, including issues around criminal tax and related money laundering cases. It said Malta had been deficient in implementing changes efficiently and warned that the government “must not downplay the importance of these measures”.

The FIAU’s note, however, says that while greylisting means the jurisdiction is regarded as “non-reputable,” which triggers the obligation for enhanced scrutiny and due diligence measures of individuals and firms operating within the jurisdiction, this does not apply to “Malta itself”.

It instructs financial services operators that the FATF greylisting is not a “trigger” to update business or customer risk assessments and does not, on its own, mean there should be any “intensification” of anti-money laundering or countering of terrorism financing measures.

“Although subject persons are required to assess the reputability and risk of a jurisdiction to better understand the risks they are exposed to, this obligation is not to be interpreted as being also applicable to Maltese subject persons with respect to Malta itself,” the note reads. Practitioners should not be concerned about jurisdictional risks around business relationships or occasional transactions with Maltese or resident clients, it says.

It goes on to advise the industry it can continue to treat Maltese or resident customers, “including bodies corporate and legal arrangements established in Malta or having Maltese beneficial owners,” as they did previously and says practitioners are not required to apply enhanced due diligence procedures before doing business with these entities.

Interpretative-Note-on-Jurisdictional-Risk

                           
                               
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John
John
1 month ago

Can Alfred Zammit, Deputy Director of FIAU and Kenneth Farrugia, FIAU’s Director explain why they gave a clean conduct to Pilatus Bank?

Can Rudolf Muscat, the FIAU’s crypto currency manager, explain why so many billions were processed through Malta?

Can Kristina Arbociute now working at FIAU, explain why her former employer Exante (XNT) was never fined by FIAU?

Who will investigate these officials who to date are being paid hundreds of thousands of euro out of taxpayers’ funds?

What a mess. What an injustice for all Maltese citizens.

carlo
1 month ago

Nisfidaw – l-arroganza ta gvern korrott.

Henry s Pace
Henry s Pace
1 month ago

‘ FIAU tells financial services industry not to impose stringent grey-list measures on locals ‘AS IF THE LOCALS ARE ANGELS FROM HEAVEN LIVING IN THIS CORRUPT MALTA.

Mick
Mick
1 month ago

Tell me I’m not living in a parallel universe!

Mark Spiteri
Mark Spiteri
1 month ago

FIAU…Now you worry after failing another test? Weeks after trying to impress moneyval with ridiculous fines on small firms while cosying up with the corrupt??

James
James
1 month ago

Here we go again… total denial of any shortcomings by the Government agencies whose role is meant to protect the interests of those who put their trust in these banks etc only to find that the FIAU believes it doesn’t actually apply to Malta itself!!

It is truly staggering to think that the Government and its lackeys are living in a bubble in an alternative world from the rest.. the Wild West had nothing on modern day Malta!!

It must be increasingly clear to Dr. Marcus Pleyer that Malta is a total basket case and has no intention of changing anything until and unless the incumbents are removed and independent agencies from outside jurisdictions are brought in to drain the swamp.

Then and only then can there be any hope for the many honest and decent people who have been caught up in this unholy mess.

Gee Mike
Gee Mike
1 month ago

Well we have to make worthwhile and Continue making the Maltese passport choice a winner!
Maltese butchers are not exempt!

KD Far
KD Far
1 month ago

Milli jidher il-problema tal-FATF m’hiex li Maltin ifottu fit-taxxa ta’ Malta ghax dak mhux ha jaffettwa xejn.

Il-problema hi meta l-barranin juzaw lill-Malta biex jaharbu mit-taxxa ta’ pajjizhom hi l-problema. Igifieri Malta messna wkoll naraw dawk il-kumpaniji kollha Maltin bil-kontijiet il-Panama u l-BVI jaharbu t-taxxa tal-Maltin!!!

Chris
Chris
1 month ago

Those who belong to the undergound mafia-mason network are meant to be untouchable. We’ll see about that.

Michael Borg
1 month ago

UNBELIEVABLE!
This advice from the FIAU IS EXACTLY WHAT WE DON’T NEED.
The FIAU appears to be in a cosying mood.
As if it doesn’t know, that some Maltese are waiting for this kind of skewed advice, to launder money which because of it, has now been made easier.

Toni
Toni
1 month ago

The grey listing started off by Maltese citizens, ie Keith Schembri and Konrad Mizzi being helped by a Maltese entity, Nexia BT!

Had Joseph Muscat, who no one believes he was immune to what was happening, and the board of Accountancy taken the necessary steps to kick out Karl Cini and Brian Tonna out, we would simply not be in this position!

Add to that, Noddy, ie Lawrence Cutajar the Police Commissioner who slept throughout his tenure and you get a mixture of Maltese Mafia!

So why, does the FIAU want to exclude Maltese citizens? Do we have more local money launderers? Maltese tax evaders and criminals???

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