The Financial Intelligence Analysis Unit (FIAU) has released its Annual Report for 2023, detailing significant achievements, strategic initiatives, and ongoing efforts in safeguarding Malta’s financial system against money laundering (ML) and the funding of terrorism (FT).
Key Activities and Achievements
- Intelligence Analysis: The FIAU received and processed 9,157 suspicious transaction reports (STRs) in 2023, reflecting a 5% increase from the previous year. The reports pertained to over 16,000 natural persons and more than 5,000 legal entities
- Supervision: The FIAU conducted 140 supervisory interventions and imposed 28 enforcement measures to ensure AML Compliance
- International and Domestic Engagement: The FIAU signed four Memoranda of Understanding (MOUs), organised 19 public-private partnership initiatives, and held various bilateral missions with foreign FIUs and regulatory bodies
- Guidance and Outreach: Delivered AML training to over 3,700 individuals through participation in 60 local events. Published nine guidance documents to help subject persons understand and implement AML controls.
- Centralised Bank Account Register (CBAR): Continued effective use of CBAR, reducing the need for requests for information to credit and financial institutions
- Compliance Monitoring Committee (CMC): Reviewed cases involving potential breaches and imposed proportionate administrative measures. The FIAU published summaries of enforcement actions to inform and deter non-compliance.
Supervision Activity
The FIAU’s Supervision Section is at the forefront of ensuring that subject persons comply with Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) obligations. The Section employs a risk-based approach to monitoring, which involves various supervisory interventions such as onsite and offsite examinations, thematic reviews, and follow-up assessments. In 2023, the FIAU focused on several thematic reviews:
- Company Service Providers (CSPs): Emphasis on directorship services, customer risk assessment, customer profiling, and transaction monitoring obligations.
- Real Estate Agents and Notaries: Assessment of risk-based approaches when assisting in property transactions.
- SICAVs: Evaluated compliance with simplified due diligence and transaction monitoring obligations, conducted in collaboration with the Malta Financial Services Authority (MFSA)’s Financial Crime Compliance function.
The FIAU’s 2023 Annual Report underscores its role in maintaining the integrity of Malta’s financial system. Through robust intelligence analysis, proactive supervision, and comprehensive outreach initiatives, the FIAU continues to strengthen Malta’s defenses against financial crimes, ensuring a secure and transparent financial environment.
The comprehensive approach adopted by the FIAU highlights the importance of collaboration between various stakeholders, including regulatory bodies, financial institutions, and other subject persons. Through the implementation of dynamic risk assessments and targeted supervisory interventions, the FIAU can effectively prioritise resources and respond swiftly to emerging threats.