THE FATF JUST MADE IT HARDER FOR GREYLISTED COUNTRIES TO BE RETURNED TO GOOD STANDING

 

Maltese Foolish Acrobatics by COSIMO

If you were wondering why this blog published an Open Letter to the Financial Action Task Force Regarding Malta this week, the answer can be found in the FATFs latest report, which laid down the methodology and procedures the regulator has now adopted for the fifth round of mutual evaluations. 

One of the central points contained in the newly revised policies is that the focus is no longer on countries' passing law and regulations regarding money laundering, terrorist financing and proliferation financing, but whether they are actually implementing those laws through prevention and prosecution. Whilst MONEYVAL's earlier evaluation of Malta was very positive, the subsequent FATF action, whereby Malta was Greylisted, showed that the Task Force saw only passage of laws, without enforcement, was insufficient, and grounds for a failing grade. Now that position has been codified as a global policy.

Those who believe that the FATF will, at its June Plenary, take Malta off the Greylist, are deceiving themselves. Without real enforcement of money laundering and terrorist financing laws, as evidenced by indictments, trials, convictions and prison sentences for offenders, it will remain Greylisted for the foreseeable future, the only EU jurisdiction to be so designated and sanctioned. Rumours to the contrary are merely political pipe dreams fed to a gullible electorate. Greylisting is here to stay; Get used to it.