Malta Prepares for Next AML Assessment Post-FATF Grey-List Removal

Malta is gearing up for its next anti-money laundering (AML) assessment scheduled between 2027 and 2028. This follows its removal from the Financial Action Task Force's (FATF) grey-list in 2022. The upcoming evaluation will scrutinize Malta's technical readiness and effectiveness in combating money laundering.

The FATF's grey-list includes countries with deficiencies in their AML and counter-terrorist financing (CFT) regimes. Malta's removal from this list in 2022 marked a significant milestone, reflecting improvements in its AML framework. However, the forthcoming assessment will be pivotal in determining whether these enhancements have been sustained and effectively implemented.

Why this matters: Malta's AML assessment has broader implications for the EU's financial systems and its efforts to combat money laundering and related financial crimes. A successful assessment will reinforce the EU's defenses against financial crimes, while a negative outcome could lead to reputational damage and potential economic consequences.

In the broader context of AML efforts, the European Parliament has adopted new regulations establishing the EU Anti-Money Laundering Authority (AMLA). This initiative aims to centralize and strengthen AML supervision across member states. The Single Rulebook AML Regulation and the related Directive are key components of this framework.

The European Commission has also been active in this domain, issuing a press release and FAQs on the new AML framework. A consultation on changes to FATF's Recommendation 16 on wire transfers is currently open and will close on May 3, 2024. These changes are expected to further bolster the EU's financial systems.

The Single Resolution Board (SRB) is also involved, with its consultation on the minimum bail-in data template (MBDT) closing on May 8, 2024. Additionally, the Commission Delegated Regulation (EU) 2024/857, which supplements the CRD IV Directive with regulatory technical standards for evaluating risks from interest rate changes, will come into force on May 14, 2024.

These developments highlight the ongoing efforts within the EU to enhance the robustness of its financial systems against money laundering and related financial crimes. Malta's upcoming AML assessment will be a critical test of its compliance with these strengthened regulations.

Malta's next AML assessment between 2027 and 2028 will be crucial in evaluating its progress post-FATF grey-list removal. With the EU's enhanced AML framework and ongoing regulatory updates, Malta's readiness and effectiveness in combating money laundering will be under close scrutiny.

Key Takeaways

• Malta to undergo AML assessment between 2027-2028 after removal from FATF grey-list in 2022.
• Assessment will evaluate Malta's technical readiness and effectiveness in combating money laundering.
• Outcome will impact EU's financial systems and efforts to combat money laundering and related crimes.
• EU has established Anti-Money Laundering Authority (AMLA) to centralize and strengthen AML supervision.
• Ongoing EU regulatory updates aim to enhance financial systems against money laundering and related crimes.