Challenges in investigating and prosecuting financial crime in Malta

Abstract

Global economies are seriously threatened by financial crimes. Such crimes also threaten the integrity of the financial system as well as the public confidence. Malta, has its own unique difficulties in investigating as well as prosecuting such type of crimes. Financial crimes include a variety of unlawful actions that make use of financial systems and institutions. Cryptocurrency is a flourishing modern financial transaction which can be a predicate offence to ML, along with, bribery and fraud. All these actions have a detrimental effect on businesses, society as well as the economy at large. When it comes to identifying and prosecuting MLrelated crimes, it should be taken into account that the predicate offence may have originated away from our shores and consequently have transnational impacts. The scope of this research is to investigate the challenges of investigating as well as prosecuting financial crimes in Malta. Hence, this study analyses financial crime in Malta to determine the most significant challenges being faced by law enforcement and financial institutions in preventing, detecting and prosecuting such unlawful actions. The purpose of this study investigates the local system’s advantages and disadvantages and makes suggestions for reform, such as amendments to the law, bolstering enforcement tools, and raising public awareness of financial crimes. The greylisting on the local financial system provides investigators and prosecutors recommends measures to rectify deficiencies in the said system. Data and information were gathered through, semi-structured interviews with participants coming from the AG office and from the FCID since they were considered in possession of the appropriate expertise on the subject matter. The outcome of this research suggests that resources available to investigators and prosecutors alike lack adequacy and do not keep up with the developments of the crimes for which they are intended. In addition, the most common crimes associated with financial crimes were identified to be tax crimes and digital currency. Difficulties in the regulatory framework were also determined. The study concludes with making relevant recommendations for improvement and for future studies.