FIAU underscores its independence, pledges commitment to deter money laundering and terrorism financing

The Financial Intelligence Analysis Unit has underscored its independence from the government in its operations as it welcomed the findings of this week’s Council of Europe Moneyval report.

The FIAU yesterday highlighted how, as part of its European Banking Authority action plan, a full 90 per cent of the recommendations made by the Council of Europe body aimed at bolstering Malta’s anti-money laundering compliance had been fully implemented by March 2019.

Moreover, the FIAU made particular note of how Moneyval had found that the Unit’s officers have performed their duties freely and objectively without undue influence, despite what the perception out there amongst the public might be.

The report, however, calls on the FIAU to improve its analytical processes, an area where the FIAU is investing in terms of analytical information technology.

As far as the action plan, implemented in close cooperation with the European Commission and the EBA, is concerned, Moneyval acknowledged significant steps along such lines.

These include, amongst others: A sector-specific Risk Evaluation Questionnaire to enhance the FIAU’s understanding of money laundering and terrorism financing risks posed by different sectors and individuals, through the deployment of its automated CASPAR system;

A new risk-based supervisory approach to ensure the FIAU to ensure its conducts a level of supervision commensurate with the size, complexity and risk profiles of people in its jurisdiction;

A strengthening of its enforcement and governance framework by enhancing the procedures of its Compliance Monitoring Committee to create more transparency and accountability in its decisionmaking;

Providing additional sanctioning tools to enforce the domestic antimoney laundering and terrorism funding framework in a more effective manner, including the implementation of remedial action to ensure the private sector’s adherence with its compliance obligations and;

The setting up of a strategy, policy and quality assurance function.

The FIAU’s analysis section was also lauded for its timely and effective cooperation with its international counterparts.

These efforts, the FIAU said yesterday, are complemented by a restructuring plan agreed upon with the government in 2018, which will see the Unit’s staff grow “exponentially” to a 138-strong workforce, complemented by new automated IT tools to render workflows more effective.

FIAU Director Kenneth Farrugia commented, “The FIAU values this independent and technical Moneyval assessment. The FIAU’s staff has proactively engaged and supported evaluators through the entire process. We appreciate the positive outcomes and take heed of all recommendations.

“Once again, we vouch for our commitment to ensure a timely implementation of any outstanding Moneyval recommendations, as we did in relation to the EBA and European Commission recommendations.

“All these efforts are ultimately aimed at making the FIAU more effective in combating money laundering and the funding of terrorism.”