Flowers rest on the coffin of Stephane Charbonnier – or ‘Charb’ – the late editor-in-chief of the satirical weekly Charlie Hebdo after he was slain by terrorists two weeks ago . Photo: Reuters

Malta must do its part in observing all laws and regulations to prevent terrorist organisations like the Islamic State from getting access to financing, PN deputy leader Mario de Marco told ­Parliament yesterday.

Speaking during the debate in second reading of the Bill to amend various laws relating to the prevention of money laundering and the funding of terrorism, Dr de Marco said it was very positive that the government and Opposition were in agreement and working hand in hand on this sector.

The transformation of the economy in recent years had been very successful and the envy of many countries. It was therefore important to safeguard the integrity of the sector and implement the necessary regulations to curb money laundering and financing of terrorism, which could put off potential investors and professionals.

Dr de Marco said terrorism was a war of terror with no clear boundaries. It was important that all countries implement the necessary regulations to limit terrorists’ access to financing.

Forbes had recently estimated that the ISIS group had $2 billion in assets and were making around €2 million a day through oil they had illicitly acquired from Libya and Syria. These funds were being used to strengthen their organisation through the purchase of information and arms, and the attraction of new recruits.

Dr de Marco proposed that the period for an attachment order with regard to persons suspected of activities involving money laundering and funding terrorism be extended beyond the 90-day limit.

The functions of the Financial Intelligence Analysis Unit were being redefined and would now be extended also to property which may have been derived directly or indirectly from criminal activity and not just from money laundering and the ­funding of terrorism.

Dr de Marco also noted with interest the amendment to the Criminal Code as regards the definition of what constitutes criminal activity.

He said that one had to keep an element of flexibility in Malta’s legislation, given the innovative and determined ways through which terrorism was organised. He declared that the Opposition agreed with the amendments ­proposed.

Introducing the Bill, Finance Minister Edward Scicluna said that it introduced measures to make it difficult for persons to benefit and transact using ­laundered money.

Financial practitioners needed to follow set procedures to ensure that the money they were managing was not the result of illegal activities. Lawyers, notaries, accountants, casinos and also trustees would now also have to follow such procedures.

Malta had been evaluated by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Moneyval) four different times.

After this, a number of measures had been introduced to come in line with the committee’s ­recommendations.

Prof. Scicluna said it was positive to note that the chairman of the institution was Dr Anton Bartolo, the Director Enforcement Unit within the Malta Financial Services Authority.

Dr Bartolo is a Maltese national.

Warrant of seizure would now be extended from 30 to 45 days with the possibility of this being further extended by court order to a total of 90 days. Warrants could now be effected by any police officer.

The Financial Intelligence Analysis Unit (FIAU) was responsible for enforcing and transposing European standards into local legislation.

The Bill would empower this agency to be able to name and shame and to better enforce surveillance. The measures proposed in the Bill included increasing the maximum fine for the breaching of obligations from €46,000 to €150,000.

Furthermore, the FIAU would now also be able to investigate suspicions that funds being administered were derived from criminal activity and not only when a report had been filed.

Suspension of operations and financial transactions were being extended from 24 hours to a maximum of three days.

With regard to financing of terrorism, current legislation referred to “acts of terrorism”. This would now be updated to “terrorist activities” to be in conformity with the UN convention and cover all types of offences in this area.

Prof. Scicluna said the government was confident that the recommendations made by Moneyval would be implemented through this Bill.

He predicted that Malta would now be at the forefront of the fight against money laundering and terrorism.