The Government of Malta has published an action plan to ensure compliance with financial requirements following the country’s gray listing by the G7 Transactional Arrangements Task Force (FATF). Earlier, the Maltese gambling business received several charges of facilitating money laundering and was described as an “unreliable jurisdiction”.
In June, the Maltese gambling industry joined 19 other countries, including Panama, Myanmar, Haiti, Syria and Zimbabwe, to encourage financial fraud in one way or another. Such a sanction is a punishment that can lead to a significant reduction in capital inflows.
The new action plan was developed by the Minister of Finance of Malta, Alfred Camilleri, in an attempt to clearly define and strengthen the compliance framework. Prime Minister Robert Abela has pledged to remove the island nation from the FATF list by 2023.
It is noted that the document provides for changes to the Financial Intelligence Unit of Malta (FIAU) and will require registered gambling companies to demonstrate transparent conduct of their business and asset management. If the operators do not comply with the requirements, they will be subject to severe sanctions.