FATF Day Of Reckoning Arrives As Malta Waits With Bated Breath For Greylisting Vote Result
Malta will today find out whether its efforts in recent years to improve its anti-money laundering regulatory framework have been enough for it to avoid greylisting by the Financial Action Task Force (FATF).
A decision is expected early this afternoon, with sources indicating that Malta’s lobbying efforts have so far not seen it ensure a unanimous decision in its favour.
The FATF grey list – officially referred to as Jurisdiction Under Increased Monitoring – includes countries determined to have strategic weaknesses in their anti-money laundering and terrorism financing framework, with a clear intention to address concerns shown.
In order to be taken off the list, countries will need to work on a plan of action agreed to with the FATF.
This afternoon the 37 countries as well as the European Commission and the Gulf Cooperation Council, which have a vote at the plenary will decide whether or not Malta is placed on the list.
There will be no official announcement on the part of the FATF.
Last week Lovin Malta revealed that three countries – the UK, the US and Germany – had all expressed a desire for Malta to be placed on the grey list.
Maltese government officials, including Finance Minister Clyde Caruana and Foreign Minister Evarist Bartolo, have been engaged in intense lobbying efforts in order to secure a favourable vote for Malta.
Caruana travelled to Germany at the end of last week for talks ahead of today’s vote, with the Times of Malta reporting that last-minute talks were also underway with the US.
In an early morning Facebook post, Bartolo lamented what he described as a double standard for big and small countries, arguing that while small countries were expected to adhere to all international laws and treaties, the same did not apply to bigger countries.
The prospect of greylisting is one Malta was hoping to avoid, given the possible implications on the country’s economy.
A study published by the International Monetary Fund last month, which analysed the impacts of greylisting on different jurisdictions, found that on average, greylisted countries experienced issues related to bank de-risking, reduced foreign direct investment among other factors.
There were differences however from jurisdiction to the next, with the impacts on any specific country heavily dependent on the characteristics of its economy.
If greylisted, Malta would be the first EU country to be placed on the list.
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