The Financial Intelligence Analysis Unit (FIAU) has insisted it went into “great detail” about its functions during a meeting with EU chief prosecutor Laura Kovesi, who complained it was very difficult to identify the institution in Malta responsible to detect financial crimes involving EU funds.
“I visited Malta, I had meetings with the national authorities and, after two days, it was very difficult for me to identify the institution that is responsible to detect the crimes because all of them said ‘It’s not me, it’s them’,” she told MEPs last week about a visit to the island back in October.
Kovesi also recalled how nobody could provide her with answers on fraud investigations and raised concerns Malta was only supporting her office with words and “not with facts”.
But when contacted, a spokesperson for the FIAU said the anti-money laundering watchdog described “in great detail” its functions.
The FIAU was one of the authorities that had met Ms Kovesi, in a one-to-one meeting, during her October 2021 visit.
“In our meeting with Ms Kovesi, the FIAU described in great detail its roles and responsibilities, which are well-defined and articulated in the Prevention of Money Laundering Act,” the spokesperson said.
In October, Kovesi had said that not a single actionable report of fraud related to European Union funds had come from Malta, raising concerns that a lack of reporting from the country could mean abuse is going unchecked.
In the wake of the prosecutor’s most recent criticism of Malta, the government said that at least five cases had been referred to the European Public Prosecutor’s Office (EPPO) since Kovesi’s visit.
According to the FIAU spokesperson, the unit has also stepped up cooperation with the EPPO following the October visit, noting that more meetings have since been held.
“The FIAU has held other meetings with representatives of EPPO of an operational nature, as well as on technical matters to facilitate the flow of information between the two.
“In fact, the FIAU has also cooperated with EPPO so that it is now able to request from and share information directly with the FIAU through a dedicated and secure channel of communication,” the spokesperson said.
The spokesperson did not provide replies to questions that referred directly to Kovesi’s remarks to MEPs. Nor did the spokesperson say whether the unit was concerned about Malta’s reputation because of such comments about the country being made at EU level.
Instead, it was noted that the FIAU “is and will continue to be fully supportive of EPPO’s role”.
“[The FIAU] intends to further work with EPPO to build a fruitful relationship in order to assist it in carrying out its functions in combating serious crime concerning EU funds. Furthermore, discussions are also ongoing at an international level among EU FIUs [Financial Investigation Units] to better understand how FIUs can support EPPO,” the spokesperson said.
Set up in 2017, the European Public Prosecutor's Office is tasked with bringing to judgment crimes committed against the EU’s financial interests, such as fraud, corruption or serious cross-border VAT fraud.