FINANCIAL ACTION TASK FORCE ON MONEY LAUNDERING (FATF) REVIEW

The Maltese regulatory authorities have received the Report published on the 22^nd June by the Financial Action Task Force on Money Laundering (FATF) containing the Review to Identify Non-Cooperative Countries or Territories. The Review found that Malta has a "comprehensive anti-money laundering system" with the only weakness identified being the system of nominee companies which is perceived as an obstacle for the identification of beneficial owners in Maltese registered companies.

The Report is considered a positive one in that it recognises Malta's anti-money laundering efforts and its comprehensive system in this regard. While the Maltese authorities are of the view that the nominee company system provides adequate safeguards for the prevention of money laundering, consideration is currently being given as to what further steps are needed in order to strengthen Malta's anti-money laundering measures and to address the concern raised by the FATF.

The Review carried out by the FATF identified 15 non-cooperative jurisdictions that have detrimental rules and practices in place hindering the fight against money laundering. These are the Bahamas, Cayman Islands, Cook Islands, Dominica, Israel, Lebanon, Liechtenstein, Marshall Islands, Nauru, Niue, Panama, Philippines, Russia, St Kitts & Nevis and St Vincent & the Grenadines. These jurisdictions were strongly urged to adopt measures to improve their rules and practices as expeditiously as possible in order to remedy the deficiencies identified in the Review. Pending the adoption of appropriate legislative and other measures, the FATF has recommended that financial institutions should give special attention to business relations and transactions with persons, including companies and financial institutions, from these non-cooperative countries and territories.