The Financial Intelligence Analysis Unit (FIAU) of Malta, issued its Annual Report for 2023 on July 16, 2024, providing an in-depth overview of the organisation's activities, achievements, and initiatives over the previous year, highlighting the FIAU's commitment to maintaining high regulatory compliance standards and sharing vital intelligence with law enforcement authorities both in Malta and internationally.
Key Activities, Achievements, and Initiatives
Enhanced Reporting and Analysis: The FIAU's Intelligence Analysis Section focused on expanding its workforce and optimising resource allocation to effectively handle the increasing workload. In 2023, there was a 5% rise in suspicious transaction reports (STRs) compared to the previous year, reflecting the impact of the FIAU's collaboration with the various stakeholders in the sector. Despite the increase in suspicious reports, there was a decrease in information requests to credit and financial institutions, indicating the robustness of the Central Bank Account Register (CBAR) system. The FIAU has refined its prioritisation metrics to handle incoming intelligence more efficiently without compromising quality.
Reporting Trends Across Sectors: The report provides detailed insights into reporting trends across various sectors, with remote gaming companies, virtual financial assets (VFAs), and financial institutions dealing with electronic money and payment services making significant contributions to the total number of reports. Land-based casino licensees, company service providers, auditors, and accounting professionals also maintained substantial reporting levels.
Guidance and Outreach: Nine guidance documents were issued to assist subject persons in adhering to their AML/CFT obligations. Organised numerous Public-Private Partnerships (PPPs), including meetings with almost all categories of subject persons and sectorial representative bodies, conducted three large-scale AML/CFT conferences, reaching approximately 600 attendees, and participated in 60 local and 12 foreign training and outreach events.
International and Domestic Engagement: Assisted eight countries in improving their AML/CFT programs and participated actively in international working groups and forums. Signed an MOU with the Office of the European Public Prosecutor (EPPO) and engaged in significant cooperation with domestic counterparts like the MFSA, MGA, and the Asset Recovery Bureau (ARB).
Supervisory and Enforcement Actions: In 2023, the FIAU issued 28 administrative measures for breaches in anti-money laundering (AML) and counter-financing of terrorism (CFT) identified during supervisory initiatives. The Enforcement Section also took action against entities failing to comply with CBAR reporting requirements. To support compliance, the FIAU published guidance notes, conducted training sessions, and plans to release an Enforcement Factsheet in early 2024. The Enforcement Section's efforts included over 40 follow-up meetings with subject persons (SPs) to ensure the implementation of remedial actions. The Compliance Monitoring Committee (CMC) held 35 meetings to discuss various cases, including compliance deficiencies.
Promoting a Culture of Compliance: The FIAU's proactive engagement with subject persons (SPs) has encouraged a culture of compliance, essential for effective AML/CFT measures. The increase in the Enforcement Section's staff complement and the introduction of robust control measures reflect the FIAU's commitment to timely, effective, and proportionate enforcement actions.
Strategic Initiatives: Began executing initiatives under the new 2023-2026 Strategy, focusing on risk understanding, effective international engagement, and efficient internal communication. Launched a data warehouse project to centralise and integrate different datasets for better risk understanding and analysis.
Operational Improvements: Conducted user consultations to improve the Centralised Bank Account Register (CBAR) functionalities. Upgraded core applications and developed integrated and automated solutions to reduce administrative work and enhance security.
Transparency and Partner Experience: For the first time, published supervisory priorities for the 2023/2024 cycle to improve transparency.
Supervision Activity: The Supervision Section within the Financial Intelligence Analysis Unit (FIAU) plays a pivotal role in ensuring compliance with Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) obligations by subject persons (SPs). This section is instrumental in monitoring, guiding, and enforcing AML/CFT measures across various sectors. The activities and initiatives undertaken by the Supervision Section in 2023 are multifaceted, focusing on risk assessment, supervisory interventions, thematic reviews, and enhancing the overall compliance framework.
Conclusion
These activities, accomplishments, and initiatives demonstrate the FIAU's dedication to protecting Malta's financial system from money laundering and terrorism financing, improving compliance culture, and encouraging international and local cooperation in the fight against financial crimes. For more detailed information, please refer to the FIAU Annual Report 2023.
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