Maltese Politician’s Relative Who Wanted To Access Casino ATM Left Frustrated At Long List Of Questions
A simple task of withdrawing money from an ATM turned into a half-hour ordeal for the relative of a Maltese politician after he was subjected to a strict due diligence process.
The man, who is the second cousin of a current MP, told Lovin Malta on condition of anonymity that he was recently in Buġibba and needed to withdraw some money, so decided to walk into a nearby casino because he knew it had an ATM near the reception area.
However, when he walked inside, he was informed that the ATM had been moved from the reception area to the actual casino and that he therefore had to become a casino member to withdraw money from it.
Assuming it was a simple procedure, he decided to sign up.
However, as the receptionist was filling out his form she asked him whether he was related to a politician. He honestly told her that he was, prompting her to bring out a whole new set of documents with a vast range of questions.
The man said these questions ranged from his own personal financial situation to whether his politician relative intends to give him money to play in the casino on his behalf.
Overall, the process took him around half an hour.
“Look at the state we’ve reached,” the man said. “I had to answer all of these personal questions for half an hour, all the time with a security guard watching me suspiciously, just to withdraw some money from an ATM.”
“I didn’t even want to play in the casino but I wasn’t allowed to just walk down, withdraw money and leave. It would have been way easier to just lie and tell them I’m not related to a politician.”
Documentation issued by the Financial Intelligence Analysis Unit (FIAU) last year to combat money laundering and terrorism financing place a lot of emphasis on politically exposed people (PEP) and their relatives.
“PEPs pose a high risk of ML/FT due to the position they occupy and the influence they exercise. PEPs may abuse of their prominent public functions for private gain, such as by being involved in corrupt practices, accepting bribes or abusing or misappropriating public funds,” the document reads.
“These crimes generate proceeds that would need to be laundered. Certain PEPs in certain positions may also be exposed to the possibility of being involved in FT. The application of enhanced due diligence measures is therefore necessary to mitigate the potential risks of ML/FT that arise when a subject person deals with PEPs.”
Enhanced due diligence is also obliged for their “family members”, which the FIAU lists as the politician’s spouse, children and parents, although it highlights that this is not an exhaustive list.
Malta’s money laundering regime has tightened in recent years, with inefficiencies in the system having caused the country to spend around a year on the FATF’s infamous grey list.
However, with Malta so small and with the country boasting so many politicians, with an MP for every 6,532 voters, this is an issue that several people face.
It also means that prospective politicians must take into account the impact that their decision to enter politics will have on their relatives in terms of enhanced due diligence that will be applied to them for basic activities.
Have you ever experienced enhanced due diligence due to your relationship to a politician?
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