PN urges government transparency on money laundering reforms

The Nationalist Party is urging the government to be transparent about the progress of its money laundering reforms in light of the International Monteary Fund report published last week and the approaching Moneyval deadline.

The IMF last week published the conclusions of its Article IV consultation on Malta. While it praised Malta's overperforming economy, it called on the country to improve its anti-money laundering rules in the wake of the COVID-19 pandemic's adverse social and economic effects.

Should this not be tackled, Malta would risk greylisting by the Financial Action Task Force (FATF), the IMF warned, a situation which MFSA strategy chief officer Chris Buttigieg had described last February as a "very serious" outcome. 

Meanwhile, a September 2020 deadline given by the Council of Europe's Moneyval group for Malta to address shortcomings related to money laundering is looming. 

In a statement on Monday, the PN said that although seven months had passed since Moneyval gave the one-year deadline to Malta, the IMF had in the past days warned Malta about the threat to its financial stability should the money laundering issues not be solved.

The PN referred to reports in Times of Malta today that the government had requested the help of the US to prevent the possibility of being greylisted, saying that this was of concern.

"One has to see whether the US offer is connected with conditions which would impact the financial services sector," the PN said, "Certainly, however, it is the government's fault that this issue has been left hanging - due to a lack planning or intentionally - and that jobs in the sector have been put at risk."

The PN appealed to the government to be more transparent about what was really happening in the fight against money laundering, and to not hide shortcomings in the sector.

It added that Malta would not be able to withstand another economic hit after that suffered as a consequence of COVID-19.