Issue link: https://maltatoday.uberflip.com/i/1387622
11 maltatoday | SUNDAY • 27 JUNE 2021 OPINION It's not just one shade of grey For some unfathomable rea- son, it wasn't satisfied with our last-minute clampdown on pre- sumed 'money-laundering' cases (mostly involving random village butchers, which doubled up as unofficial 'banks'); or with any of the other procedural changes we have introduced over the past couple of years: changes which may have ticked off all the right boxes for Moneyval approval, yes; but which still do not actually ad- dress the conspicuous 'elephant in the room'. And having already spelt out, so meticulously, what that 'elephant' actually is… and what must now be done to remove it… those last words – 'I urge [Malta] to do so' – ring a particularly ominous note. To reduce it all, once again, to 'headmaster-speak'… what we've just been told is: "No more excus- es; no more fancy talk; you know what you have to do… do it, or the punishment will only get worse…" And yet, when all is said and done… Pleyer's ominous warning still remains the thing it is: i.e., a strict headmaster's justification, for a classic case of 'collective punishment' that – no matter how richly deserved, by the true culprits - remains rather harsh on everyone else who will ultimately be affected (and, even going only on the 'best-case' scenarios: that category is likely to include you, me, and both our dogs…) So I guess the over-riding ques- tion still remains: does Robert Ab- ela have a small point, by reacting to Malta's grey-listing much as I did to all those Mathematics fail- ures, way back in my schooldays? Is there any truth to his claim that the FTAF's verdict was, in itself… 'unfair'? In all (ahem) fairness… the an- swer is: yes, very probably. And for a wide variety of reasons, too. For while there can be no re- al doubt that those 'significant, strategic deficiencies' do exist… they still pale into insignificance, when compared to glaring cases of impunity we have witnessed in other, non-greylisted countries: including the USA, no less (which is, after all, the country that gave the world the term 'too big to fail'… precisely by 'downplaying the seriousness' of certain mon- ey-laundering cases). One can also legitimately ques- tion – as we all routinely did, as schoolchildren – whether the punishment really does 'fit the crime', in this instance; or even whether – correct though the verdict itself may be – these 'defi- ciencies' are still simply being ex- ploited by other countries that are (like it or not) our competitors, specifically in all the economic ar- eas being targeted here… Yes: we can question all that, and more. And there certainly still is room to discuss the 'fairness', or otherwise, of an indictment against which there seems to be no ability to 'appeal', either…. But… well… in the end, that's just another of those things we were all once taught at school (particularly, when finding our- selves 'in trouble' at the headmas- ter's office). Life isn't exactly what you would call 'fair'... is it, now? THE placing of Malta on the FATF grey- list was painful, but we will get through this. The first thing to say is the obvious – this issue is not black and white. That's why the word "grey" is used. Malta is clearly doing many things right, but the criticism levelled at us is that there are things we can do better. Indeed, there are many shades of grey. The Financial Action Task Force (FATF) exists to tackle global money laundering and terrorist financing. That is what we want to do too. We are on the same page. But we have to ask why it decided to greylist Malta when another internation- al body, the Council of Europe's expert group Moneyval, had already found that Malta was no longer "non-compli- ant" with financial crime standards. Moneyval recog- nised that Malta had gone to great lengths to tight- en procedures and improve detection and enforcement. Many Maltese and Gozitans are on- ly too aware of this because of the extra checks they face in their everyday activ- ities of banking and opening savings ac- counts. We engage with international bodies, listen to what they suggest and take action to improve things. That's why the ruling of the FATF is unjust. We know that we deserved a much bet- ter outcome. We have long been working hard to ensure that we comply with any suggestions put forward. The Maltese government implemented substantial changes to further bolster the rule of law in Malta, whilst also ensuring that insti- tutions have their systems and structures in place. We spent over €125 million to strength- en our structures in the fight against money laundering mechanisms and oth- er malicious activities, increasing work- force by over 50%. Positive results were showing. Investigations against money laundering surged drastically, with an increase in prosecutions and investiga- tion orders. Still, we remain committed to continue our reform programme. I have no doubt that companies and investors, currently opening here, appre- ciate we are a serious jurisdiction. They have no reason for alarm and will carry on their business as before. Potential new investors will take note of the FATF's decision, but they will also study the approval from Moneyval and the verdicts of the various international credit agencies, who rate Malta highly. Malta is still regarded as one of the best places in Europe – both for investing and good quality of life. It is not a question of rethinking our economic model, as the lead of the Op- position thinks, but to further strength- en it and explore new economic nich- es. A case in point is the nomad resi- dence permit we are launching. It allows people to live in Malta while carry- ing out their work in another country, remotely. They continue to pay income tax in their home country but make an eco- nomic contribution to Malta through their spending. Digital nomads have higher disposal incomes than tourists and remain in the country longer, so their spending is greater. There are those who like to paint Mal- ta as some kind of rogue state. The truth is we are a modern parliamentary de- mocracy with an independent judiciary and rule of law. We are in the Europe- an mainstream, acting as a team play- er in the EU. And that is how we shall continue to behave. We will engage with our colleagues in Europe and beyond. We shall continue to uphold the highest democratic values and we will contin- ue with our programme of reform. We are not shy about doing things better. In fact, we relish the opportunity to prove our worth. Alex Muscat Alex Muscat is Parliamentary Secretary for Citizenship and Communities I have no doubt that companies and investors, currently opening here, appreciate we are a serious jurisdiction. They have no reason for alarm and will carry on their business as before