The main identifiable crimes suspected by the Financial Intelligence Analysis Unit (FIAU) last year were drug trafficking, unlicensed financial services and organised crime with five, three and two cases respectively being forwarded to the Malta Police, according to the unit's annual report for last year. Another six Suspicious Transaction Reports (STRs) with other predicate crimes were also forwarded to the police last year.

The FIAU is Malta's national central agency, within the ministry of finance, responsible for the collection, collation, processing, analysis and dissemination of financial information with a view to combating money laundering and the financing of terrorism. Between 2003 and last year the main suspected crime was fraud/forgery with 17 per cent of the total cases forwarded to the police. The second and third most commonly suspected crimes were drug trafficking with 15 per cent and usury with 11 per cent.

Most of the STRs filed during 2007 (51 per cent) were related to foreign individuals or companies while 44 per cent related to local activity with an additional five per cent being related to both foreign and local activity. The report points out that this analysis could be an indication that Malta may be used by criminals to launder money in the intermediary stage.

STRs filed with the FIAU during 2007 decreased by 15 reports (20 per cent) over the previous year to 63 reports.

During 2007, the FIAU processed 52 STRs which amounted to 45 cases. The STRs processed during this year concerned one STR filed in 2005, 21 STRs (19 cases) filed in 2006, and 30 STRs (25 cases) filed last year. There were 34 STRs (31 cases) of which the analysis was still ongoing at the end of last year. These STRS were filed last year, with the exception of one which was filed in 2006.

As a result of these analyses, during 2007 the FIAU referred 24 reports, relating to 22 cases, to the police for further investigations. During 2007 another 24 STRs resulted in inconclusive evidence and therefore no further action was taken by the FIAU. During 2007, there were four reports relating to two cases that were not related to money laundering or to the funding of terrorism.

The main source the STRs filed with the FIAU during 2007 continued to be credited instititutions, having filed 39 STRs (62 per cent) out of the 63 STRs filed with FIAU during the year. This is understandable and compares with other juridictions in the light of the dominant role of the banking sector in the domestic fianacial system

Except for the reports filed by professionals, which increased to five reports last year, and by investment services licence holders, who filed four reports compared to none the previous year, there was an overall decrease in the reports filed by all the other subject persons. While the reports from credit institutions only decreased slightly, there were no reports filed by the insurance sector, continuing the downward trend noted by the FIAU during the last three years. Likewise, reports from supervisory authorities reduced to two reports compared to 12 the previous year which had registered a marked increase.

In order to complete the analyses of a number of STRs, last year the FIAU sought assistance from 24 foreign FIUs in respect of 29 STRs. By the end of the year the FIAU had received replies to 21 requests.

On the other hand during 2007, the FIAU received 29 requests for assistance from 15 different countries, up by six over 2006. The requests varied from those for general information to others that required an elaborated analysis and compilation of the information requested. During 2007, there were no enquiries to the FIAU that led the unit to initiate its own investigation, compiled its own analytical report and report to the Police. As to end of the year, the FIAU had replied to all requests for assistance received.

Most of the enquiries received by the FIAU were from its European counterparts. In five instances there were reciprocal enquiries.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.