Issue link: https://maltatoday.uberflip.com/i/1047665
6 maltatoday | SUNDAY • 4 NOVEMBER 2018 MATTHEW VELLA MALTA'S financial intelligence unit (FIAU) is advising banks and other money handlers to apply "proportionate" risk pro- files to clients who could be as- sociated with politically-exposed persons (PEPs). Under new anti-money laun- dering rules, PEPs will be sub- ject to stricter, enhanced due diligence procedures by institu- tions like banks, but so will their spouses, partners, children and even parents: a long list of associ- ates that could mean complicat- ed banking services for relatives of a politician or high-profile functionary. But the FIAU, which this week issued revised guidelines to Mal- ta's money laundering rules, is asking banks and other subject persons to carry out due dili- gence measures that "commen- surate and proportionate to the risks posed". "A high-risk investment is one thing, but the child of a govern- ment minister opening up a bank account to receive their univer- sity stipend is another," said one high-ranking FIAU official this week during a briefing on the new implementing procedures. PEPs must undergo enhanced due diligence because their roles could be abused for private gain, such as being involved in cor- rupt practices, accepting bribes or abusing or misappropriating public funds. But under the EU's fourth Anti- Money Laundering Directive, family members and business as- sociates come under closer scruti- ny by banks and financial services providers, because their connec- tion to the PEP can be used to fa- cilitate the abuse of this influence or for money laundering. These onerous conditions have led some risk-averse banks to outright refuse to have any deal- ings with PEPs, but the FIAU is calling on institutions to carry out due diligence measures that are proportionate to the risk posed. The FIAU is saying that while EDD must be applied on PEPs and their relatives and associates, "this is not to be interpreted as meaning that…. such a business relationship or occasional trans- action is connected to money laundering or financing of ter- rorism." These include people who are spouses or partners, children and their own spouses, and also parents, as well anyone who as a close business relation. The FIAU says questionnaires should be drawn up for these people to answer, to understand the social, economic and cultural context of the relationship, and that any such PEPs must remain under ongoing monitoring, even 12 months after that PEP has ceased their prominent public function. The FIAU also says these peo- ple do not need to be turned away on the basis of their rela- tionship with the PEP. "EU rules do not distinguish between for- eign and local PEPs so anyone entrusted with a prominent pub- lic function is considered to be a PEP," the FIAU said, cautioning against treating less influential people like Maltese mayors as PEPs when the same function for the mayor of a large city might expose him to a higher risk. "In case of lower risk situations, [banks] may take less intrusive and less exhaustive steps to es- tablish the source of funds and wealth of the PEP, family mem- bers or known close associates." But the FIAU says PEPs not only include Maltese elected of- ficials and executive appoint- ments, but also permanent secretaries within government ministries, chiefs of staff within all government ministries, and the Commissioner of Police and his deputy commissioner. The FIAU also says certain busi- ness relationships can be low-risk, and some PEPs may not have ex- ecutive decision-making respon- sibilities, like Opposition MPs or a government backbencher, who are also subject to rigorous disclo- sure requirements. On the other hand, a high-risk PEP is someone who is seeking to have access to a service that is capable of being used to laun- der the proceeds of corruption or bribery, has personal wealth that is inconsistent with known legitimate sources of income, or has faced credible allegations of financial misconduct. Banks are being told that they must satisfy themselves that sources of funds and wealth are not related to any possible crimi- nal activity. NEWS Vacancy PROJECT PROMOTER (Jobsplus Permit No: 583/2018) A vacancy for the post of Project Promoter has arisen within NCPE, the National Commission for the Promotion of Equality, as part of the project 820451 Prepare the Ground for Economic Independence. The selected candidate will be expected to enter into a full-time definite contract (expiring in August 2020), where s/he will be responsible for the project activities including: - facilitate the project's overall communication and PR activities; - be responsible for an online campaign, organize and monitor all outreach activities, issue articles and attend local media appearances as necessary; and - raise awareness on the activities emanating from the project and develop a high profile to the respective target group. The Project Promoter must be in possession of: Either Pertinent post- graduate degree (Masters); or an appropriate, recognised, comparable qualification + 1 year relevant work experience in EU project management. Or Pertinent first degree; or an appropriate, recognised, comparable qualification + 3 years relevant work experience, 1 of which should be in EU project management. The degree must be in Sociology, Psychology, Anthropology, Public Policy, Social Policy, Commerce, Law, European Studies, Communications, International Studies, or Social Work. The individual needs to be a good team player, well versed in equality issues, computer literate and able to use all MS Office applications. Strong communication skills including excellent writing skills in both Maltese and English are essential for this position. Knowledge/experience of Accounts, Management and Government procurement regulations is considered an asset. Interested persons should send their application together with a detailed CV to the Executive Director by not later than Friday 16 November 2018. Late submissions will not be considered. NCPE Gattard House, National Road, Blata l-Bajda ĦMR 9010 Tel: 2295 7850 E-mail: equality@gov.mt Web: www.equality.gov.mt Rights, Equality and Citizenship Programme 2014-2020 Project part-financed by the European Union Co-financing rate: 80% EU funds; 20% National Funds INCREASE LIFE! LIFE is the EU's financial instrument suppor�ng environmental, nature conserva�on and climate ac�on projects throughout the EU. LIFE has two sub-programmes: Environment and Climate Ac�on. Project proposals are welcome from public bodies, private commercial organisa�ons and private non-commercial organisa�ons (NGOs). To receive updates on the LIFE Programme email us at life.mesdc@gov.mt or find us on Facebook, Twi er and LinkedIn. Interested applicants are encouraged to check our LIFE website at h ps://msdec.gov.mt/en/life/Pages/home.aspx KAI Marine Services, LIFE+ MIGRATE Project. Photo Credits: OCEANA / Carlos Minguell ©LIFE BaĦAR for N2K OCEANA © LIFE BaĦAR for N2K 'PEP families' are under closer scrutiny FIAU says banks and financial intermediaries should also make a difference between high- risk and low-risk 'PEPs' who are not really decision-makers The President of the Republic, the Prime Minister, ministers and parliamentary secretaries MPs and the Speaker of the House Permanent secretaries and ministers' chiefs of staff Individuals involved in the management and admin- istration of political parties represented in the House of Representatives, but not paid- up party members or village party club secretaries Members of the judiciary, magistrates, the Auditor General, the deputy Auditor Genereal, the Central Bank governor and deputy gover- nors Ambassadors, chargés d'affaires of foreign jurisdic- tions in Malta as well as all Maltese ambassadors and chargés d'affaires, but not honorary consuls, and the Armed Forces of Malta's com- mander and deputy com- mander, the Commissioner of Police and deputy commis- sioners Members of the administra- tive, management or super- visory boards of commercial entities and companies in which the Maltese govern- ment has an ownership inter- est or control of over 50% All Maltese individuals entrusted with a prominent public function inside the EU institutions or international equivalents, such as the Mal- tese EU Commissioner, MEPs, Maltese members of the Euro- pean Court of Auditors and the European Court of Justice Who is a PEP in Malta?