On Thursday 8 November, the European Commission adopted a formal opinion in which it calls upon the Maltese Financial Intelligence Analysis Unit (FIAU) to redouble its efforts to come fully into line with its obligations under the fourth anti-money laundering directive.
“The Commission will use all its powers, including infringement procedures, to close any loopholes in the fight against money laundering”, the European Commissioner for Justice, Vera Jourova, warned in a press release.
The Commission took a first step in October 2017, when it asked the European Banking Authority (EBA) to investigate a possible infringement of EU law concerning the inability of the Maltese authorities effectively to supervise the bank Pilatus, which was accused of money laundering and incidentally had its banking licence withdrawn by the ECB earlier this week (see EUROPE 12130). In July, the EBA concluded that the FIAU had indeed breached EU law in this case (see EUROPE 12061).
The Commission is now calling upon the FIAU, which is responsible for enforcing EU anti-money laundering rules, effectively to supervise banks on Maltese soil.
Specifically, the institution sets out a list of measures in its opinion that the FIAU must take, including: - improve its risk assessment methodology; - ensure that it is in a position to address shortcomings identified within an appropriate period of time; - set in place an effective sanctions regime; - ensure that its decisions are duly reasoned and documented.
“The FIAU remains deeply committed to ensuring that Malta's financial and other sectors remain protected from the growing threats of money laundering”, the director of the unit, Kenneth Farrugia, said in response on the same day.
The Maltese authority reiterates that it has already undertaken many actions in the framework of a global action plan, which it notified to the EBA on 25 July.
In so doing, the FIAU reiterates its absolute commitment to cooperating fully with the Commission and the EBA. It now has ten working days to notify them of the measures it intends to take to come into line with its obligations under EU law. (Original version in French by Marion Fontana)