The Malta Gaming Authority is concerned that the lack of collaboration between anti-Mafia Italian authorities, the Malta Police Force and regulators might be adversely affecting the fight against irregular gaming activities, which could be a cover for money-laundering.
Sources have confided that, although the regulator was not a law enforcement agency, intelligence about irregular activity involving companies registered in Malta did occasionally reach it. The highest profile case of the Italian Mafia using the Maltese gaming jurisdiction emerged in 2015 when six companies had their assets seized by the Italian police and international law enforcement agencies.
This international operation had revealed that the Calabrian Mafia clan, ’Ndrangheta, owned three Maltese gaming licences linked to two Malta-registered Italian companies and they had been laundering millions of euros.
The heart of the problem is that, extraordinarily, despite Interpol collaboration between the Italian authorities investigating the Mafia and the Malta police and authorities like the Malta Gaming Authority still appears to be lacking. The regulator, it seems, remains in the dark and only learns what is happening from the Italian media.
Malta Gaming Authority chairman Joseph Cuschieri was quoted telling an Italian gaming news site he wanted to start a collaboration with the Anti-Mafia Commission in Italy and with any other authorities wanting to know about the activities of Italian gaming operators in Malta. He also said “a handful” of Italian companies registered in Malta, but not actually operating here, were now undergoing a new review process. This follows the arrest by the Italian authorities earlier this month of Benedetto Bacchi – the ‘King of the Slot Machines’ – suspected of being a member of the Sicilian Cosa Nostra for alleged money-laundering.
Because of this and in view of arrests carried out by the Italian police in connection with organised crime, Mr Cuschieri let it be known that the risk profile of certain business models adopted by Italian licensees in Malta was under review. Scrutiny was being tightened to minimise any potential risks to the Maltese jurisdiction. Companies registered in Malta but having overseas operations are under the microscope.
As Malta knows only too well now as a result of the Panama Papers scandal, the world of financial services – but, especially, the world of gaming this country has attracted in large numbers to its shores – is, by its nature, prone to abuse.
This places a huge responsibility on the gaming watchdog, financial services regulators and the police in Malta. This is not only because they must exercise great diligence but they must also be totally at one in their collaboration both with the highly-experienced and professional anti-Mafia Italian authorities and also with other international anti-money-laundering police authorities. If it has not happened yet, Interpol must be encouraged to play a much greater role in enabling such collaboration.
The government must rebut conclusively any suspicion about the involvement of Malta’s gaming industry and financial services in money-laundering and financial crime. In parallel, the Malta Financial Services Authority must rigorously investigate the licensing of financial institutions, especially Italian companies registered in Malta conducting Italian business, to ensure the risks of money-laundering and financial crime are vigorously addressed. Regretfully, recent experience involving such institutions does not bode well.
This is a Times of Malta print editorial