On the 17th of June 2022, the Financial Action Task Force (“FATF”) officially announced the removal of Malta from its list of Jurisdictions under Increased Monitoring, informally known as the ‘grey list'. Malta was placed on the grey list in June 2021, with the FATF flagging concerns over Malta's regulatory infrastructure to combat tax evasion, the level of information held on ultimate beneficial owners and the legislative framework outlining the provisions of the sharing of information with local and international authorities. It appears that the global financial watchdog has noted that significant progress was made by Malta as outlined in its FATF action plan.
Financial services operators are hopeful that following the FATF's decision, the burden of conducting overseas business and international scrutiny will gradually ease off. Nevertheless, Malta is not expected to rest on its laurels and must consistently and actively ensure that its anti-financial crime reforms and measures are being implemented and properly enforced.
Malta's emergence from the grey list sends a signal to the international financial sector that shortcomings identified by the FATF have largely been addressed and Malta may be considered a trustworthy jurisdiction.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
