The relationship between cashless societies and financial crime : a Maltese perspective

Abstract

As countries like Sweden are attempting to become cashless societies in the near future and as many different kinds of cashless payments are becoming available with time, physical cash seems to be proving less relevant. This raises concerns as to whether this new payment method gives rise to financial crimes or not, within the Maltese market. Therefore, this study investigates further the relationship between these two factors and also looks into the effectiveness of Maltese regulation in this regard.

To answer the research question, a qualitative approach was used, specifically semi-structured interviews with knowledgeable market players as well as regulatory authorities within the Maltese market.

From this research, it was concluded that Malta is a cash-intensive society, and to change this, it would take a lot of time and effort. Moreover, it was found that an increase in cashless payments wouldn’t lead to higher levels of financial crime in the Maltese market as long as the correct measures are taken to combat the risks of a cashless society. It has also been realised that regulation with regards to electronic payments in Malta is on the right track, however there is still much to be improved.

These results are subject and limited to certain factors, namely the fact that the research is mainly empirical and contains no quantitative methods of research. It is also limited to the opinion of the few individuals who were interviewed, due to the low response rate of participants.