To what extent are anti-money laundering and counter financing of terrorism efforts effective in raising awareness towards the funding of terrorism? : the case in Malta

Abstract

The purpose of this research is to analyse the extent to which Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) efforts are effective in raising awareness towards the deterrence of the funding of terrorism. This is done by qualitatively assessing MLROs perceptions and level of awareness on CFT issues, including through an in-depth analysis of the level of recognition in relation to red flags associated with the funding of terrorism. The findings indicate that in Malta a general lack of awareness exists in relation to counter financing of terrorism matters whereby greater emphasis is placed on anti- money laundering. Such findings do not only reflect MLROs’ perceptions, but these are also corroborated by the lack of ability to recognise red flags that are high indicators of terrorism financing and low indicators of money laundering. The author reaches the conclusion that more resources need to be allocated towards raising awareness on Malta’s emerging threats in relation to terrorism financing. Furthermore, suggestions are provided to Maltese relevant authorities on ways in which this can be achieved.