The impact of the fourth anti-money laundering directive on Malta's banking sector

Abstract

Money laundering is a global threat which disturbs the integrity of the financial system. It can be referred to as a hidden disease which concedes criminal activity to seep throughout sectors of the financial industry. This study evaluates the important implications which the newly proposed Fourth Anti-Money Laundering Directive imposes on the Maltese Banking Sector. It considers literature and data collected in an attempt to achieve the research objectives of studying the approaches and viewpoints which the local banking operators have on the harm that Money Laundering presents to the industry. The study also analyses the EU's approach to sustain the internal market against Money Laundering by reducing the complexity of actions which may be present across borders. The draft legislative proposal of the European Directive is therefore also conceived as motivating the strengthening of the Anti-Money Laundering regime throughout the Member States.