The Malta Institute of Accountants (MIA) is holding a one-day anti-money laundering conference in December in a bid to provide further insight into how Malta can exit the Financial Action Task Force’s (FATF) grey list.

It has only been a couple of months since Malta reeled from the news that it had been greylisted by the global money laundering and terrorist financing watchdog. While a previous assessment by the Council of Europe’s Moneyval had found Malta’s regulatory framework to be technically compliant, the FATF was not satisfied with the level of implementation of such framework in practice. This exposed Malta to increased and persistent money laundering and terrorist financing risks, pushing the FATF to place Malta on the list of countries which undergo increased monitoring. 

Being on the FATF’s grey list comes with a lot of disadvantages, the most serious of which is the fact that being placed on such a list might affect the country’s attractiveness for investors. 

The level of risk assigned to a Malta-based company or individual when being assessed by a foreign institution has increased, with the consequence that investors might look elsewhere when deciding where to establish themselves. Undergoing extra due diligence entails time and money, factors which both investors and corporates surely seek to avoid when considering where to set up shop.

"Being on the FATF’s grey list comes  a lot of disadvantages, the most serious of which is the fact that being placed on such a list might affect the country’s attractiveness for investors"

However, not all is doom and gloom. Exiting the grey list is not an impossible feat as can be seen from the experience of other countries. The Maltese government has clearly expressed its strong resolve to take the bull by the horns to address the matter according to an action plan agreed with the FATF. 

The MIA believes that professionals have a fundamental role to play, particularly when considering that the FATF has highlighted the fight against tax crime and the need for further transparency of ultimate beneficial owners of companies as the two major areas of concern which must be addressed by the country to get itself delisted. 

In its efforts to highlight the importance of these elements, the MIA conference is bringing together a line-up of key speakers who will be able to provide further insight into the main concerns raised by the FATF and the necessary corrective action identified. 

With the input of representatives from all relevant national competent authorities, this insightful conference will be an ideal forum for a candid discussion as to how professionals and competent authorities can all toe the same line to ensure that Malta exits the said grey list in the shortest time possible and with the least dire repercussions possible. 

Exiting the country’s current predicament is in the common interest of all stakeholders and Malta’s efforts will only be successful with a collective effort by the different stakeholders.

The MIA’s anti-money laundering conference is being held on December 7. More details are available on www.miamalta.org/exiting-the-grey-list.