The Financial Intelligence Analysis Unit in Malta (the “FIAU”), via its supervisory section, monitors anti-money laundering and combatting the financing of terrorism (“AML/CFT”) compliance by subject persons in Malta. In so doing, it adopts a risk-based supervisory strategy, which entails adapting the frequency, scope and methods of supervision, according to the degree of risk of money laundering and/or financing of terrorism posed by particular subject persons.
The FIAU, in order to be able to determine the risk posed by each subject person, initially engages in a risk understanding and assessment process which is made on the basis of, inter alia, the information provided by subject persons via the FIAU’s Compliance Assessment and Supervisory Platform for Assessing Risk (commonly referred to as the CASPAR platform). The results generated from this assessment determines the risk profile of each subject person, and the FIAU then establishes a tailored, supervisory plan upon this basis, which differs from one subject person to another in terms of frequency, scope and type of intervention, according to the risk profile of the particular subject person and the sector in which it operates.
In this respect, on 25th July 2023, the FIAU issued a newsletter which:
- sets out the various types of supervisory intervention which subject persons may expect during the FIAU’s upcoming supervisory cycle;
- sheds light on the FIAU’s expectations from subject persons during the pendency of any such intervention; and
- provides subject persons with details on the topics it intends to focus on and the type of intervention it intends to commence, split according to the sector in which subject persons operate.
Of notable importance for subject persons to bear in mind is indeed the section in the newsletter which outlines the FIAU’s expectations from subject persons during an intervention. In this respect, the FIAU has notified subject persons that collaboration and communication between the FIAU and subject persons’ identified point of contact is expected throughout the process.
The FIAU also anticipates timely cooperation from subject persons when requested to provide the FIAU, during an intervention, with information and documentation relevant for the purpose of demonstrating compliance with AML/CFT obligations.
Lastly, where, following an intervention, the FIAU determines that subject persons should, inter alia, take certain remedial action to ensure compliance with AML/CFT obligations, the expectation is that subject persons show commitment to implementing the remedial action within the timeframes set by the FIAU, and failure to do so by the subject person may result in enforcement action being taken.
The AML/CFT team at Camilleri Presiozi regularly tracks the FIAU’s guidance and expectations in order to ensure that we are well placed to guide subject persons to meet any such expectations and ensure compliance with AML/CFT obligations. Accordingly, please feel free to get in touch with Kirsten Debono Huskinson at firstname.lastname@example.org or Kyra Sammut at email@example.com should you have any queries or wish to have more information on your AML/CFT obligations and the FIAU’s expectations.