Malta’s good name and reputation is now under serious threat due to the Labour government’s systematic weakening of the country’s institutions, the Nationalist Party said on Friday. 

“Authorities have been unable to do their job properly since 2013 [when Labour assumed office], due to a lack of resources and political meddling,” said PN finance spokesman Mario de Marco. 

Dr de Marco was reacting to the conclusions of a Moneyval report into Malta’s anti-money laundering regime, which found significant failings in the country’s systems and expressed concern that local law enforcement was not in a position to do its job properly. 

He listed concerns that the Council of Europe’s expert body had highlighted, from the financial regulator’s failure to take action against Pilatus Bank, authorities’ failure to investigate political figures Konrad Mizzi and Keith Schembri, who were caught with secret offshore setups, and the complete lack of investigation into the Panama Papers. 

PN financial services spokesperson Kristy Debono warned about the dire consequences that Malta’s economy would suffer if it were to end up being blacklisted and considered a tax haven. 

Reacting to the PN press conference, the government noted that more than one-third of the Moneyval report’s recommendations had already been implemented. The Financial Intelligence Analysis Unit, it said, had already implemented 90 per cent of the report’s recommendations in its regard. 

Among those changes is a pledge to conduct detailed investigations of all high-risk entities every 18 months. 

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