Issue link: https://maltatoday.uberflip.com/i/1289033
17.09.2020 7 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 EDITOR: PAUL COCKS CONTRIBUTING JOURNALIST: MASSIMO COSTA BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 F ighting financial crime must be a top priority for Malta as the country tries to escape from the shadows of the bad reputation it developed over the past few years. Part of the problem was Malta's rapid econom- ic expansion that was not matched by an equally rapid increase in quality resources for law enforce- ment and regulatory agencies. In this way, institutions like the Malta Financial Services Authority, the Financial Intelligence Anal- ysis Unit, the police economic crimes unit and oth- er institutions could not keep up with the influx of high-risk business in financial services and gaming. To this end, the millions budgeted for the MFSA and the FIAU over the last couple of years to boost human resources and introduce modern regulatory and compliance systems were more than welcome. ese two institutions, today, are better placed than they were two years ago, to act as pro-active watchdogs on a burgeoning sector. e police, under the direction of the new police commissioner, have also redirected efforts and in- vestment to make the fight against financial crime a priority. All these efforts must be strengthened, especial- ly within a context where financial crime is often linked to organised criminal groups and corrup- tion. Going after the big fish requires knowledge, ex- pertise, resources and cross-border cooperation. But part of the problem that caused Malta's repu- tation to nose-dive, was the impression of impuni- ty imparted by those in power. When journalist Daphne Caruana Galizia re- vealed that Konrad Mizzi and Keith Schembri had opened companies in Panama shortly after Labour came into power, no proper investigation was car- ried out despite a preliminary report by the FIAU indicating the possibility of money laundering. Testimony given in the Caruana Galizia public inquiry by the former police commissioner shows how investigations progressed at a slow pace, sug- gesting there was no real appetite to go after the culprits. e same holds water for an investigation into Dubai company 17 Black, which was later revealed to belong to Yorgen Fenech. Requests for coopera- tion sent to the UAE, appear to have been incom- plete, making it harder for the Arab Gulf state to share information. is go-slow attitude has nothing to do with lack of resources and expertise but has much to do with the lack of will to go after people in power when they do wrong. It is an indication of subservience to politicians who were unwilling to rock the boat, stop corrup- tion and bring to justice those who robbed taxpay- er money. Malta has paid a high price for this attitude and this is why it has now become more crucial than ever to see charges being filed, people close to pow- er being prosecuted and have justice run its course. Strengthening laws, investing in law enforcement and regulatory agencies, toughening penalties and creating new entities are all important changes. But on their own they will not be enough. Malta faces the crucial Moneyval test next month and failing it will cause problems on the interna- tional stage. But this is not just about passing a test but about the need to have an ongoing commit- ment to fight financial crime. Government is working hard to avoid the Money- val predicament and institutional and legal chang- es undertaken over the past months are positive developments. But more has to be done to chase high-level cor- ruption and money laundering with the scope to bring perpetrators to justice. It is only then that Malta's reputation of a country where impunity reigns can start to change. Fighting financial crime must be a top priority