Malta Country Summary

FATF Status

Malta is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 17 June 2022

The FATF welcomes Malta’s significant progress in improving its AML/CFT regime. Malta has strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in June 2021 related to the detection of inaccurate company ownership information and sanctions on gatekeepers who fail to obtain accurate beneficial ownership information, as well as the pursuit of tax-based money laundering cases utilising financial intelligence. Malta is therefore no longer subject to the FATF’s increased monitoring process.

Malta should continue to work with MONEYVAL to sustain its improvements in its AML/CFT system.

Compliance with FATF Recommendations

The last Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Malta was undertaken in 2021. According to that Evaluation, Malta was deemed Compliant for 12 and Largely Compliant for 28 of the FATF 40 Recommendations. No review of the 11 areas of Effectiveness of Malta's AML/CFT Regime was undertaken in the Follow-up MER and, therefore, these remain assessed at being Highly Effective for 0 and Substantially Effective for 2.

Malta has established legal frameworks and institutions to combat corruption, effectively implementing laws against official corruption, although public sector corruption is not a major challenge for U.S. firms. Despite some past allegations and ongoing concerns, Malta has made significant strides in anti-corruption measures, including legislative reforms and compliance with international recommendations, though it has struggled with the implementation of certain recommendations. The country also faces issues related to organized crime, human trafficking, and financial crimes, with ongoing efforts to improve governance and judicial effectiveness.

Malta's economy is primarily service-oriented, focusing on sectors such as shipping, banking, online gaming, tourism, and professional services, with manufacturing playing a smaller yet significant role. The country has experienced robust economic growth post-pandemic, with a real GDP growth of 6.1% in 2023, although future growth is expected to slow down due to economic conditions in its main trading partners. Malta's stable credit ratings reflect its favorable investment climate, supported by a low unemployment rate and a commitment to attracting foreign direct investment.

Malta offers a favorable investment climate, characterized by its strategic location, political stability, and membership in the EU, Eurozone, and Schengen Zone. The government actively seeks foreign direct investment (FDI) in high-tech manufacturing, ICT, and digital technologies, providing various incentives to attract investors. Additionally, Malta's citizenship-by-investment program allows individuals to acquire citizenship through significant investments, further enhancing its appeal to foreign investors.