Malta’s Financial Intelligence Analysis Unit (FIAU) received just over 2,770 suspicious transaction reports in 2019, jumping up by close to 1000% since 2015.

An April newsletter from the FIAU revealed that the number has skyrocketed from just 73 in 2010 to 2,778 in 2019. The figure has grown at a substantial rate over the last three years.  In 2015, the year the Panama Papers broke, there were just 281 suspicious transaction reports.

Suspicious transaction reports form part of a system which requires private firms like banks, financial services practitioners, notaries, insurance firms and even gaming companies to alert the FIAU of any possible illegalities related to money laundering or terrorism funding from their clients.

Following pressure from European bodies like the European Central Bank and Moneyval, the FIAU has undergone significant structural changes. It has introduced new risk assessments and more robust laws, while it has improved enforcement and cooperation with other local bodies. The current 70 members of staff are earmarked to grow by 31 by June and by 58 by 2020.

The FIAU is also sharing significant information with its counterparts. In 2019, 1,548 spontaneous reports were shared with counterpart FIUs, and by the end of February this year, almost 600 spontaneous intelligence reports have been shared.

However, despite the improvement on the FIAU’s part, questions still remain on whether their work ever translates to concrete action from Malta’s Police Force, given their lack of prosecution powers.

The Economic Crimes Unit still remains poorly resourced, while FIAU reports on key government figures like Konrad Mizzi, Keith Schembri, Brian Tonna, and Adrian Hillman were never prosecuted by the police, despite reasonable suspicions of money laundering.

These included a report into former Minister Konrad Mizzi, his offshore structures, and links to the purchase of the LNG tanker; a report into an alleged passport kickbacks scheme between former Prime Minister’s Chief of Staff Keith Schembri and Nexia BT’s Brian Tonna; and a report into Schembri’s €650,000 transaction with Times of Malta’s former Managing Director Adrian Hillman.

Most claims remain bogged down behind confidential magisterial inquiries. Almost two years later and they are yet to be concluded. With the courts shut down because of COVID-19, expect the wait to continue.