The Financial Intelligence Analysis Unit has approved the Institute of Financial Services Practitioners (IFSP) Guidance Notes on the Prevention of Money Laundering and the Funding of Terrorism. These are expected to be distributed to members shortly.
The IFSP is the first organisation in Malta to issue guidance notes to complement the new regulations covering this area, which were issued in 2009 and based on the EU’s Third Money Laundering Directive.
The new regulations follow a risk-based approach to the prevention of money laundering and the funding of terrorism (PMLFT), a break from the earlier rules-based approach.
A statement by the Institute of Financial Services Practitioners said: “Measures to counter criminal activity will be a lot more effective if resources can be concentrated on known problem or risk areas. This is all very well, and should make PMLFT compliance less of a burden to practitioners.
“It also has its disadvantages. Risk is not necessarily a simple, clear cut thing to assess. This means the current form of the PMLFT regulations shift a lot more responsibility onto practitioners’ shoulders.
“It also means that some areas of the regulations are open to a degree of interpretation. In addition, the regulations do not necessarily define clearly how the responsibilities should be carried out. This is where the Guidance Notes come in.”
The Guidance Notes were drawn up by a group of IFSP members which make up the Institute’s PMLFT committee, headed by Juanita Bencini. “The committee has put a lot of hard work into these Guidance Notes and it has been a long road with several touchpoints with the Financial Intelligence Analysis Unit on areas of interpretation,” Ms Bencini said.
This is the first set of sectoral guidance notes to be issued in Malta following the issuance of the new regulations.
“This is a landmark project for the IFSP,” Andrew Manduca, IFSP president said. “On behalf of the council and members of the Institute, I would like to thank Juanita Bencini and all the members of the sub-committee for their sterling work on the Guidance Notes.”
The Financial Intelligence Analysis Unit (FIAU) receives, analyses and disseminates financial intelligence with a view to combating money laundering and funding of terrorism in Malta.
The FIAU was set up in 2002 under the Prevention of Money Laundering Act. Although it falls within the structure of the Ministry of Finance, Economy and Investment, it is an independent agency and enjoys full autonomy in its operational activities.