Banks battling money laundering

The financial services sector in Malta has grown exponentially over the past 15 years. Malta’s economy is one of the most dynamic in the EU having maintained steady growth over recent years and has continued to outperform that of many of its peers.

Rapid economic growth and increase in international investment could leave Malta more vulnerable to financial crime and money laundering.

The National Risk Assessment (NRA) which was published early last year has identified the illegal activities that generate most proceeds and threaten the local economy. The NRA also names the sectors that are most vulnerable to being abused or misused for financial crime.

As one would expect, banks topped the list as being the most vulnerable to money laundering and funding of terrorism. The large volume of transactions processed daily by banks, coupled with a vast array of products to choose from, make banks attractive to criminals to launder their ill-gotten gains.

The Maltese economy is a cash-intensive economy where cash remains the preferred mode of payment in various sectors including the real estate and luxury goods sectors. Such a situation makes banks in Malta even more susceptible to money...