New laws to combat money laundering and terrorism financing

Speaking in Parliament, Edward Scicluna said that the validity of sequestering orders will be extended from 30 days to 54 days, which a court order will be able to extend to a maximum of 90 days.

“30 days is too short a time for the people to conduct their investigations properly, particularly where the cases involve a number of suspects and companies,” Scicluna said. “This can result in the police not using sequestering orders as much as they otherwise would.”

The maximum administrative fine for contravention or failure of compliance will increase from €46,000 to €150,000.

The Financial Intelligence Analysis Unit’s power to freeze financial operations and transactions that they suspect involves money laundering or terrorism financing will be extended from 24 hours to three working days.

“At 24 hours, the FIAU has less time to inspect such activities than any other financial intelligence unit in Europe,” Scicluna pointed out. “It is certainly not enough time for the FIAU to carry out effective analysis.”

“The best way to fight a criminal is to disallow him from enjoying the financial fruit of his criminality,” Scicluna said.  

In his speech, Opposition deputy leader Mario de Marco said that money laundering undermines the entire financial services sector and that Malta must be on its guard to counter it.  

“One of the best weapons against terrorism is the financial arm, to deny terrorists access to finance and to deny people from making a profit from terrorism,” de Marco said. “ISIS’ earns over $2 million a day through oil sales, money that they then use for recruitment and to purchase weapons and information. Terrorist groups today are properly organized and don’t only exist in Syria and Iraq but in Europe too. We must stay ahead of the game.

He also warned that it’s getting increasingly difficult for governments to draw the line between terrorist and criminal groups, as terrorist groups are often involved in criminal activity such as drug producton.

 “We are living in another world war,” de Marco said. “Thousands of people are dying everyday and millions of people are living as refugees.”