FIAU Issues Guidance On Identifying Money Laundering Red Flags

Money Laundering Red Flags

On the 14^th of May 2025, the Malta Financial Intelligence Analysis Unit ('FIAU') issued a guidance document, bearing code SA25-01, aiding compliance professionals identify indicators which may point at money-laundering and terrorist financing ('ML/TF') risks within corporate, financial and non-financial records.

The SA25-01 document provides a detailed account of red-flags which are normally encountered by the FIAU in evaluating both financial and non-financial information.

Some red flags which may be evident in financial statements, as outlined in the guidance document, indicating potential ML/TF activities include the following:

• Anomalies in revenue reporting: Unjustified and sudden peaks and troughs in revenue, without demonstrating a clear and detailed business rationale;