A total of €2.2 million worth of fines were imposed by the Financial Intelligence Analysis Unit during the first half of 2023, statistics tabled in parliament show.
The anti-money laundering unit is facing a challenge to its powers after a constitutional court in March declared that the fines it imposes are unconstitutional.
Judge Audrey Demicoli ruled that the FIAU does not classify as a court so its power to impose administrative penalties is unconstitutional and in breach of the European Convention of Human Rights.
The FIAU is subject to 17 court cases alleging breaches of constitutional rights, according to data provided to parliament by Finance Minister Clyde Caruana in May.
Other statistics tabled in parliament this month by Caruana show the FIAU continued to impose fines after the March decision.
Around €780,000 worth of fines were issued by the FIAU between April and June.
Last year, the unit issued €3.1 million in fines to companies and individuals found to be in breach of anti-money laundering laws.
According to the laws regulating the FIAU, the unit may impose administrative penalties not exceeding €5 million.
My advice is to seize the opportunity to continue reforms after the grey-listing- Former FATF president Marcus Pleyer
The FIAU ramped up its supervision of the financial sector in response to Malta's grey-listing by the Financial Action Task Force (FATF).
Former FATF president Marcus Pleyer last year warned against Malta “deprioritising” the fight against financial crime.
In an interview with Times of Malta, Pleyer said he has seen this happen in “many countries” after an FATF evaluation.
He said that after FATF’s evaluations, he has often seen countries divert resources away from key authorities needed to fight money laundering and terrorism financing.
“My advice is to seize the opportunity to continue reforms after the grey-listing,” he said.
“The process made Malta a much better place when it comes to fighting money laundering. People in key authorities have a much better understanding of the risks, and have better structures in place to detect, investigate and disrupt illicit financial flows,” Pleyer said.