“Transnational crime has moved beyond a few mafias operating in a few problem cities and threatens peace, justice and development the world over. This criminal transformation has been driven by the geopolitical, economic and technological shifts brought about by globalisation. They take advantage of the opening of new markets, supply chains and technologies and exploit weak regulation in financial markets and cyberspace.”
This is one of the conclusions of a report on ‘The Global Illicit Economy’ compiled in March 2021 by the Global Initiative Against Transnational Organised Crime.
The report also stresses that the fight against transnational organised crime has to be ‘glocal’: both global and local. It should be seamless and comprehensive: democracy, good governance, an independent judiciary, checks and balances, rule of law, freedom of information, investigative media, protection of whistleblowers, governments held to account, media freedom and an active and dynamic civil society… are all essential.
In April 2021, Malta’s foreign ministry organised ‘The Malta Workshops’ to explore and discuss together the particularities of small international financial centres and the associated challenges they face in ensuring financial flows are legitimate and transparent.
We wanted to discover where increased cooperation between our jurisdictions and our combined efforts would bring about tangible results in creating a layer of defence against money laundering and financing of terrorism. We are stronger together and together we can go far. Sharing problems helps us share solutions.
Malta’s achievements over the past decades have been impressive: from acquiring independence, becoming a republic, closure of foreign military bases, acquiring neutrality, and creating jobs and wealth, to EU accession. Social services, education and health services are at the very core of what Malta is today.
Malta must not put these achievements at risk by allowing criminal networks to operate with impunity.
We have implemented a wide-ranging governance reform programme to address our weaknesses and system failures when it comes to fighting corruption, economic crime and money laundering. These reforms must deliver more tangible and visible results.
But as we look at ourselves and the world around us we know that, however much we change and introduce new measures, we can never be complacent when we come to good governance and the fight against national and international economic crime. Good governance is fragile. It must always be defended. We must be ever vigilant.
Malta, like many other countries and islands with limited geographic territory, is highly dependent on its tourism and financial industry as national revenue generators.
Yet, a balance needs to be maintained between the quest by small international financial centres to grow their financial industry, including through innovative business concepts, and the need to fully and sustainably mitigate the oftentimes elevated risks that arise from such business concepts. We in Malta have experienced first-hand what can happen if that balance is lost.
Together against crime
To exchange experiences with other countries that encounter similar challenges as Malta, we decided to host ‘The Malta Workshops’ to discuss ways in which such risks can be properly mitigated and how we, as small international financial centres, can cooperate better in this regard.
As Italy’s president, Sandro Pertini used to say: ‘God forbid that anyone defends corrupt people, out of loyalty or solidarity to their party’- Evarist Bartolo
Sound financial governance in relation to anti-money laundering, as well as cooperation between countries in response to transnational criminal activity cannot be a stand-alone effort. We need to nurture a national and international eco-system to fight it.
At the national level we all need to do our bit: the political parties, the business associations, the professionals, the media, the whole education system, the unions, the churches.
There must be a united front of political parties, business organisations, professional and civil society against criminal networks. Institutions will be as honest as the people in them, so from a very young age the values of honesty and integrity need to be nurtured among our people, through example and not just nice words.
We are as strong as the weakest link in our countries. We will lose our sovereignty and democracy if we allow the hidden webs of informal and illegal power to win over the political parties and the country’s institutions. The shell of a sovereign state will be in the hands of elected government and the national institutions but its soul will be in the hands of criminal networks.
As Italy’s president, Sandro Pertini used to say: “God forbid that anyone defends corrupt people, out of loyalty or solidarity to their party. In doing this, the friendship within the party becomes complicity and omertà. I repeat that people like these, dishonest and corrupt, should be put aside because they offend the Italian people. They offend millions and millions of Italians who, in order to live an honest life, make huge sacrifices, they themselves and their families.”
A democratic country that wishes to be run in an honest way needs media that investigate and criticise, as much as it needs a parliament to keep tabs on government, a serious opposition, independent law courts, honest regulators and a police force that operates without fear or favour.
Similarly, the country needs citizens who think independently and organise themselves in civil society to take an active part in the way society is run.
Every country’s action in the fight against economic crime, money laundering and financing of terrorism must necessarily be complemented by a wider framework of cooperation and collaboration with our regional and international partners.
Global challenges can only be addressed jointly, through a collective effort. I hope that Malta continues to take initiatives to create meaningful, effective and lasting fora of international cooperation that will have concrete and positive results for our present and future generations.
Evarist Bartolo is a former foreign and education minister.