Issue link: https://maltatoday.uberflip.com/i/1169316
19.09.19 14 NEWS Most of the Moneyval report recommendations already implemented or work in progress AWARE of the increased sophistica- tion of money laundering, the MFSA has in the past months invested sig- nificantly in enhancing its capacity in anti-money laundering standards, resources and procedures, drawing on extensive consultations with national and international organisations and experts. Following this consultation exercise, the MFSA launched its AML/CFT strategy in February 2019. Among the key changes implement- ed over the past twelve months, the MFSA has: • Established a dedicated Finan- cial Crime Compliance (FCC) function to better reflect the strategic importance of AML/ CFT supervision as an intrin- sic part of the MFSA's pruden- tial and conduct oversight. The setup was strengthened further through the engagement of a team of international experts, enabling the MFSA to achieve an unprecedented level of depth and quality in its joint inspec- tions of licence holders, working closely with the FIAU to increase the quality and intensity of its investigations. The additional resources have resulted in a sub- stantial increase in the number of inspections carried out. • Introduced more in-depth and extensive AML/CFT checks throughout the supervisory life- cycle process - in particular the authorisation process has been made more stringent, with a fo- cus on the shareholding struc- ture, governance framework (in- cluding key functions), internal controls and business models presented. As a result of these rigorous checks, the number of applications refused in the first half of 2019 increased to 25% from the 10% pushed back in 2017. • Published guidance with respect to "fit and proper" procedures to be applied at all stages of on-boarding processes, setting out due diligence expectations for licence applicants. • Addressed the recommenda- tions in the Moneyval report, relating to the Register of Trust Ultimate Beneficiary Owners by fully implementing the National Strategic Action Plan require- ments on beneficial ownership information on trusts. This in- cluded the setting up of a regis- ter of beneficial owners of trusts which will be extended to all trusts by 1 January 2020. MFSA CEO, Joseph Cuschieri said that money laundering was a signifi- cant challenge for regulatory author- ities worldwide. Through our stronger interactions with foreign regulators and invest- ment in our technical capacity and resources, we are achieving a bet- ter understanding on how corporate structures can be exploited for money laundering purposes," he said. "We will not be complacent - our commitment is to raise the bar in AML/CFT supervisory standards so that the MFSA can be a role model for financial crime compliance standards in Europe." MFSA CEO Joseph Cuschieri