Issue link: https://maltatoday.uberflip.com/i/1373323
14 maltatoday | WEDNESDAY • 19 MAY 2021 INTERVIEW The FIAU, from the outside at least, appears to have under- gone something of a culture change. Has there been an actual metamorphosis within the Unit, is it a matter of having made the FIAU's operations more visible or is it a combina- tion of the both? It's actually a combination of the both. The FIAU has meta- morphisised over the past years but, culturally-speaking, it has not really changed – in the sense that it has always been made up of a great team of people who are extremely passionate about their work, hard-working, and who are guided by the FIAU's core values. The FIAU has however meta- morphosised and there is no re- semblance to what it was a few years ago. Not only has the FIAU grown from an HR perspective, but it has also changed, for the better, in other aspects, such as the organisational set up of the FIAU and its governance frame- work, the number of sections and teams that are now in place ensure better workflows and spe- cialisation, the IT systems that it has invested in such as CASPAR, goAML and other tools, the over- haul of its policies and proce- dures in the areas of supervision, enforcement and financial intel- ligence, and the addition of new anti-financial crime responsibili- ties, such as the Centralised Bank Account Register and the imple- mentation of Malta's national cash restriction policy. Also, as you pointed out, our operations have become a lot more visible – and this on various fronts. For example, the setting up a team dedicated to guidance and outreach has enabled the FI- AU to up its game in this field – with a clear and visible increase in the number of guidance docu- ments published by the FIAU and the number of outreach activities that we organise or participate in from time to time. The work of the FIAU has become much more visible also because of the administrative measures it has taken when it detected breaches of anti-money laundering regula- tions. Measures taken by the FI- AU are published on its website in accordance with EU law, and this has contributed to a greater level of awareness among subject persons, and to an extent, also among the general public. Operationally-speaking, there have undoubtedly been a number of significant changes within the FIAU over the last couple years. What catalysed these changes and what have the results been? The FIAU has indeed seen a huge change over the past couple years, but those changes had ac- tually started before then. To give you an example, when I joined the FIAU in 2010, there were just 10 employees. In 2018 we already had 43, and in 2015 the FIAU moved to a larger premises. Now we have surpassed the 100-em- ployee threshold, and again, the FIAU shall be moving to anoth- er larger premises later this year to accommodate more officers in line with the FIAU's develop- ment plan. There were a number of differ- ent factors catalysing this change. The government has become more sensitive to the need to increase resources and to have strong authorities in place to be able to fight financial crime in Malta, and to ensure that all sub- ject persons in are monitored and compliant wit their obligations. Operationally-speaking, we have had massive changes over the past years. We have not only increased our resources but we have invested in our people by making sure they get the training they need. We have invested in tools, in information technology systems, and we have strength- ened our policies and procedures across the board. As for the re- sults, all in all, the FIAU has be- come more effective in carrying out its functions. This has led to an improved level of compliance by subject persons in Malta, and to an increase in the use of finan- cial intelligence by the Police and other authorities in and outside Malta. For example, the FIAU is re- ceiving and processing many more suspicious reports than ever before. Last year, the Unit received more than 5,000 sus- picious reporting from subject persons in Malta, such banks and remote gaming companies, and after having carried out an analysis, it shared more 170 an- alytical reports with the Police in Malta and over 4,000 intelli- gence reports with our foreign counterparts. Also, the FIAU has considerably increased its super- visory coverage by carrying out onsite or virtual examinations of subject persons, particularly in higher-risk sectors. In fact, last year more than 200 examinations were conducted using the FIAU's recently overhauled risk-based approach. This in turn has result- ed in more enforcement actions taken by the FIAU, such as the imposition of penalties or requir- ing subject persons to remediate their shortcomings within a spec- ified period of time. Malta faces a number of specific money laundering challenges due its size and the structure of its economy – with significant Financial Intelligence Analysis Unit Deputy Director Alfred Zammit explains to David Lindsay how after a period of excruciating scrutiny in the wake of a number of financial scandals, the FIAU has emerged stronger than ever after much-needed investment and an operational overhaul – so much so, according to Zammit, that it now has in place one of the best anti-money laundering systems in the EU and beyond From scrutiny to example setting: hefty investment in the FIAU ushers in a paradigm shift