Issue link: https://maltatoday.uberflip.com/i/1368118
NEWS that Malta has passed its Moneyval test allows the financial services industry and busi- ness operators to breathe a sigh of relief. Failure to comply could have seen the country enter the money laundering grey list and that would have spelt serious trouble. Malta has had a rough ride over the past five years not least because its anti-money launder- ing structures were found wanting at a time when the financial services sector and the gam- ing industry grew exponentially. Regulatory authorities did not have the hu- man resources, technology and will to crack the whip. And when they worked, the police failed to investigate and prosecute. The system was overcome by lethargy, which politicians in gov- ernment found very convenient. The Panama Papers in 2016 kicked off a series of events that exposed the country's vulnerabil- ities. It may have been easy for government at the time to brush aside the wrong deeds of Kon- rad Mizzi and Keith Schembri despite having been caught opening companies in Panama. But things changed radically after the murder of Daphne Caruana Galizia in October 2017. The linkages between the assassination and peo- ple with friends in government; the stories of questionable money flows and corruption that Caruana Galizia exposed; and large government contracts that were mired in controversy pro- vided the backdrop for the intensive criticism Malta received in international institutions, including EU ones. This context cannot be brushed aside when trying to understand why the European Parlia- ment recently approved a rule of law resolution putting Malta in a bad light. Government's reaction was similar to that of jilted lover. Some of the frustration is under- standable but it would be absurd not to realise that the wrongs of five years cannot be imme- diately forgotten because Malta has passed its Moneyval test. This leader is not oblivious to the political games at play between the different blocks in the European Parliament, which penalise coun- tries depending on who governs them. The international scrutiny may feel unfair – and at times it is a question of MEPs and institutions finding it easier to bully a small country – but this scrutiny was also part of the reason why Malta is today in a much better place. Judicial, political and regulatory reforms en- acted over the past 18 months have left their mark positively. But they would not have come about swiftly without intense international scru- tiny. Police have arrested, interrogated and ar- raigned people who until several months ago were deemed to be untouchable. Police have made more breakthroughs in the Caruana Gal- izia murder case and smashed an oil smuggling ring. The police financial crime unit has been beefed up. The Financial Intelligence Analysis Unit has bitten the bullet and imposed serious penalties for anti-money laundering breaches or failures. The Malta Financial Services Authority has also stepped up its supervisory efforts. These achievements cannot be underestimat- ed. But vigilance must remain strong. The will to clamp down on money laundering, tax evasion and corruption must remain stead- fast. Passing the Moneyval test, which still requires the final stamp of the Financial Action Task Force, is not the end of the road. Economic operators that are complaining because of the tough hand being shown by the FIAU and MFSA must learn to adapt to this new reality. The fight against money laundering is an international one and it would be a mistake to return to the ways of old. Politicians on the other hand must learn to value good governance for its intrinsic good and not for convenience. It is only then that Maltese MEPs and government will have the moral au- thority to preach to their European counterparts on serious problems in their own backyards. Beyond Moneyval, vigilance must remain strong 11 LETTERS & EDITORIAL maltatoday MaltaToday, MediaToday Co. Ltd, Vjal ir-Rihan, San Gwann SGN 9016 MANAGING EDITOR: SAVIOUR BALZAN EXECUTIVE EDITOR: MATTHEW VELLA EDITOR: PAUL COCKS Tel: (356) 21 382741-3, 21 382745-6 Website: www.maltatoday.com.mt E-mail: dailynews@mediatoday.com.mt maltatoday | WEDNESDAY • 5 MAY 2021