A legal versus a criminological investigation on money laundering : what is the phenomenon behind combating money laundering?

Abstract

Money laundering is the illicit technique of making significant sums of money obtained through criminal activities, such as drug trafficking or terrorist financing which appear to have originated from a legitimate source. The proceeds of illicit activities are deemed to be "dirty," but the same process "launders" them to make them appear clean. Malta is on the Financial Action Task Force (FATF)'s list of countries with strategic AntiMoney Laundering shortcomings. In June 2021 Malta announced a high-level government commitment to cooperate with the FATF and the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) to improve the efficacy of its anti-money laundering and counter-terrorist financing regime. The current EU Anti-Money Laundering Directive has now been fully transposed into the Maltese legislative framework as a result of recent amendments to the Prevention of Money Laundering Act (PMLA) and The Prevention Of Money Laundering And Funding Of Terrorism Regulations (PMLFTR). Malta has also seen a rise in the Money Laundering cases at the Courts of Justice to which the author will also be considering. As a matter of fact, both on an international and local level, a number of laws and standards aimed at combatting money laundering and terrorist financing, are constantly being revised to adapt to the growing dangers posed by criminals and terrorists. It has become increasingly difficult to distinguish between severe potential threats and the numerous false positives that appear in money laundering searches. According to a new follow- up study recently issued by MONEYVAL, Malta has also enhanced procedures to prevent money laundering and terrorist financing, exhibiting substantial progress in the degree of conformity with the FATF Standards. Thus, in preventing Money Laundering in Malta, the author asks what are the measures being taken to minimize Money Laundering? How far has these measures been successful and operative and what is the way forward?