Maltese money laundering legislation from a regional perspective

Abstract

This study relates to the area of ML. ML is not a recent phenomenon and has existed for quite some time, yet through the years increased and more complex crimes in such area have been noted. Thus, it was not only a national need to regulate and penalise such crime but also an international necessity to provide a more or less uniform law for all the MSs to follow. This is seen as essential, as if no uniform law existed, one would find a weaker jurisdiction which has no control on such area, thus ML would be easier to perform. In Malta, Chapter 378 of the Laws of Malta has been adopted to regulate AML, together with the implementation of other EU Directives. When dealing with the issue from an international perspective, there are several conventions that stipulate the need to treat AML, for example the Vienna Convention. Although the law has undergone many changes both locally and internationally, it is believed that there is still a long way ahead, for such crime to be completely dealt with. Thus, the scope of this study is to firstly analyse the emergence of AML law and the progress which local legislation has made through the years, whilst comparing it to foreign jurisdictions and how it moved in line with international law. In addition, it analyses what issues caused the need of such law. Secondly, it deals with the present existing law, mainly focusing on Maltese law, but comparing it with international law to identify what is lacking in Maltese law. The main aim of this section is to identify whether moving towards a more internationally regularised crime would be more effective in punishing fully such crime. Thus, the question would be whether having a common law applicable to at least all the MS on an EU level would be more effective in minimising such a crime. Moreover, reference is made to the actual cases that have taken place in recent years. Thus, this study analysis mainly three cases, being the HSBC case in 2012, the Danske Bank case, and the Pilatus Bank, which identify the lacking elements in the law and what could be improved. The main aim is to come up with some amendments and improvements that the AML law can undergo to have more effecting results. This is achieved by reading the current law (both local and international), analysing case law, and also taking into consideration the suggestions of the critical reports that are issued yearly such as the MONEYVAL report issued the EU. For a better and more accurate idea of what may be proposed to amend the legislation of the ML, an interview is held, with the FIAU, as it is an institution which closely works in the field of AML. This helps to suggest firstly how they are affected by such law, and the importance of such law. Moreover, through their experience they are able to express several suggestions on how the law can be emended and the best way forward.