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The FIAU fined a total of € 12.4 million in 2021, and the court overturned the penalty.



The Financial Intelligence Analysis Unit (FIAU) was fined a total of € 12.4 million in 2021 and is shown in its annual report.

The report was published on Tuesday, and Director Kenneth Farrugia highlighted the work done to implement the Moneyval recommendations and addressed three key issues highlighted in the Financial Action Task Force (FATF) greylist report. I dealt with it.

The FATF greylisted Malta in 2021 after Malta failed to achieve satisfactory scores in three of the 58 major areas. Money laundering related crimes. Malta was removed from the gray list last week.

Despite the results of the June 2021 FATF Plenary, FIAU said this year remains a successful year due to significant improvements in Malta’s anti-money laundering framework.

Throughout 2021, FIAU received over 7,000 suspicious report complaints. This is an increase of over 2,000 from 2020. The annual report also shares that FIAU has shared 8,443 intelligence reports with both national and international authorities. This is an 86% increase in 2020. ..

Another important difference from 2020 is that FIAU is equipped with technologically superior equipment to help improve central bank account registration capabilities while improving efficiency in the evaluation of money laundering reports. Is to be.

FIAU’s progress wasn’t the only one. By increasing the number of employees from 98 in 2020, we are currently increasing the number to about 130. This was done to constantly train and prepare for the ever-changing threats posed by money laundering in intelligence, surveillance, and enforcement.

“Despite the pandemic, FIAU’s commitment to provide ongoing guidance to businesses and organizations continued.”

Throughout 2021, the FIAU was fined a total of € 12.4 million, but the main purpose of the authorities is to support companies and entities by devising plans to comply with the standards set by the authorities. did.

“FIAU plays an important role in combating crime and protecting Malta’s financial system and reputation. A criminal abuse-free financial system and good reputation are important to the country’s economy and are clean. We encourage foreign investment, “the document read.

Road from FIAU and Graylist

Malta was placed on the FATF Gray List due to three failures in its anti-money laundering policies, processes, and legislation.

This area was judged in 11 immediate results sections and Malta failed to get a pass rate on three of these. Therefore, FIAU needed to work primarily in the areas of appropriate frameworks for licensing money laundering prevention agencies, investigating money laundering crimes, and confiscating criminal proceeds.

After a year of work, FIAU achieved an achievable pass with a Money Laundering Prevention Agency license, but the partially achieved pass was given to the other two criteria. According to FIAU, this was clearly enough to remove Malta from the greylist.

This process included an action plan provided by the FATF, statistical data received by the Maltese authorities, and a direct meeting with the board of directors.

Court overturning FIAU fines

FIAU is also tasked with fines companies and organizations that do not comply with certain compliance guidelines set by the European Union.

Over the past few weeks, there has been news that certain entities have not paid the full fine and have ruled in court, resulting in a significant reduction in the fine.

Kenneth Farrugia, director of FIAU, said that while authorities fully respect the court’s decision, “fines are not respected and the amount paid is years before FIAU warns international financial institutions. Similar to what I was giving to. Too low. “

Farrugia further states: “FIAU has a mechanism approved by the relevant international authorities to calculate the fines given to the entity in question, but we still respect the court’s decision.”

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https://www.independent.com.mt/articles/2022-06-21/local-news/FIAU-issued-fines-totalling-12-4-million-in-2021-notes-courts-overruling-penalties-6736243890 The FIAU fined a total of € 12.4 million in 2021, and the court overturned the penalty.

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