Financial Intelligence Analysis Unit on its functions and powers

In view of various recent media reports the Financial Intelligence Analysis Unit wishes to clarify the following about its functions and powers.

The Financial Intelligence Analysis Unit was established as an independent administrative intelligence agency in 2002 by means of the Prevention of Money Laundering Act. The main function of the FIAU is the collection, collation, processing, analysis and dissemination of information for the purpose of combating money laundering and funding of terrorism.

The FIAU receives reports of suspicions of money laundering or funding of terrorism or of property that may be derived from, or that constitutes the proceeds of crime. It analyses reports received and supplements them with additional information and intelligence and draws up an analytical report on the result of the analysis.

Where the FIAU has reasonable grounds to suspect money laundering or funding of terrorism or the existence of property that may be derived from, or that constitutes the proceeds of crime, it sends analytical reports to the Commissioner of Police for further investigation.

The FIAU is also empowered to report to the Commissioner of Police any activity which it suspects involves money laundering or the underlying criminal activity, or funding of terrorism and of which it may become aware in the course of the discharge of any of its functions.

One other function of the FIAU is to supervise all persons subject to prevention of money laundering obligations in order to ensure compliance with their legal obligations. For this purpose the FIAU is empowered to cooperate with supervisory authorities.

The FIAU may exchange information with any foreign financial intelligence agency and with supervisory authorities in Malta or outside Malta, on a confidential basis, where information is relevant to its analytical work related to money laundering or the underlying criminal activity, or funding of terrorism.

The FIAU is an administrative intelligence agency. It collects intelligence and provides it to the police. The FIAU does not have the powers of the police and therefore it does not have the power to arrest any person or to carry out criminal investigations nor to prosecute any person.

For the purpose of pursuing its functions, the FIAU has extensive powers to request and to collect information from any person, authority or entity, including the police, any government ministry, department, agency or other public authority and from any supervisory authority. The powers of the FIAU to demand information override any obligation of secrecy or confidentiality under any other law.

The independence of the FIAU is essential for the proper implementation of its functions and it is important that its activities should not be drawn into the public domain.

The operations of the FIAU are covered by the strictest form of secrecy and confidentiality. Article 33 of the Prevention of Money Laundering Act expressly provides that any official or employee of the FIAU who discloses that an analysis is being carried out, or that information has been transmitted to the FIAU, or that information has been transmitted to the police for investigation, shall be guilty of an offence and liable on conviction to a maximum fine of €116,468.67 or to a maximum term of imprisonment of five years or to both such fine and imprisonment.

Article 34 furthermore provides that the FIAU, and its officers, employees and agents, whether still in the service of the FIAU or not, shall not disclose any information relating to the affairs of the FIAU or of any person, which they have acquired in the performance of their duties or the exercise of their functions, except as provided in terms of law.

The FIAU may disclose information to a foreign financial intelligence agency and to supervisory authorities in Malta or outside Malta. The FIAU may also disclose information to a competent authority in Malta or outside Malta investigating money laundering and funding of terrorism.

The FIAU reports on an annual basis to the Minister for Finance on its activities in general, but not on specific cases. After the close of each financial year, the FIAU transmits to the minister a copy of the annual accounts certified by the auditors and a report on the operations of the FIAU during the year. The report is laid before Parliament.

The Annual Report is the principal source of information which can be communicated to the public about the FIAU and it is drawn up in considerable detail.

The FIAU’s annual reports are published on the FIAU’s website.