Issue link: https://maltatoday.uberflip.com/i/1126183
06.06.19 9 EDITORIAL BusinessToday is published every Thursday, the newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN COORDINATING EDITOR: PAUL COCKS CONTRIBUTING JOURNALISTS: MASSIMO COSTA | LIAM CARTER BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 THE European Commission has not minced its words on the need for strong- er anti-money laundering enforcement in the country recommendations released yesterday. is is all the more necessary in the light of the services economy's rate of growth, Brussels underscored. e size of Malta's fi nancial and gam- ing sector, and the eff orts to attract cryp- to-currency operators require eff ective anti-money laundering enforcement, the commission said. With Malta aiming to become a top-tier jurisdiction, it follows that the country will have to beef up its regulatory resources. Malta is pretty much like a teenager who has rapidly outgrown her clothes. While the private sector has found the space to fl ourish in a country with a government that calls itself business-friendly, public services and infrastructure have lagged behind. e fi nancial services sector has not only grown bigger but become more complex and is challenging traditional models with technological innovation. Government's strategy to attract crypto currency operators, provide a regulatory framework for artifi cial intelligence and use of blockchain technology in a multi- tude of fi elds is the hallmark of a nimble, forward-looking administration. But with this must come a solid invest- ment in enforcement. Malta's regulators have to also up their game and be at the forefront of innovation if they are to keep pace with the private sector. ese developments require more, better and smarter enforcement to ensure that Malta becomes a top-tier jurisdiction. In an interview with sister newspaper MaltaToday last February, Joseph Cuschie- ri, CEO at the Malta Financial Services Authority, acknowledged the need to beef up the regulator's monitoring and enforce- ment capabilities. e MFSA has rolled out a three-year transformation plan that foresees bigger investments in information technology and a more professional workforce. e government must back the change with a strong fi nancial commitment but industry must also contribute more in terms of li- cence fees. A more effi cient watchdog benefi ts the sector as a whole because it helps to give certainty. e commission commented positively in its report on the recent increase in the human and budgetary resources of the Fi- nancial Intelligence Analysis Unit and the enhancement of its procedures and pro- cesses. But there is a major lacuna in the police force, which is ultimately responsible for criminal prosecution. e police's Economic Crimes Unit is un- derstaff ed and unable to carry out complex investigations in an expedient manner. And the commission did highlight this. e complexity of money-laundering schemes, made worse with technological advancement, requires specialised person- nel, who not only can read and interpret accounts but understand the IT underpin- ning these transactions. Policing needs to become smarter. e commission noted that "governance shortcomings, particularly in the fi ght against corruption" could adversely aff ect the business environment and weigh neg- atively on investment. is is a warning Malta must heed if it wants to continue its path of growth and prosperity. Strengthening the regulatory and en- forcement authorities is not a choice but a must to ensure private enterprise operates on a level playing fi eld without having to carry the burden of bad reputation caused by rogue elements. Tech growth requires smarter enforcement