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5.12.19 12 OPINION 30.6.2022 THE decision of the FATF to remove Malta from the increased monitoring process, known as the greylist, dom- inated the agenda of the ird AML & Financial Crime Conference, jointly or- ganised by ARQ Group and the Malta Bankers' Association, which was held on 21 June 2022. A full-house of delegates including su- pervisors, senior bankers, professionals, representatives from the financial ser- vices sector and other subject persons as well as policy makers contributed to a highly successful and interactive event, with the theme "Aligning Growth Strat- egies with the National Financial Crime Compliance Agenda". e line-up of speakers and panellists included C-level executives, senior gov- ernment officials and supervisors, chair- persons of constituted bodies as well as renowned local and international con- sultants. In his introductory speech, ARQ Group Managing Partner Manfred Gal- des said that the conference focussed on the way forward, especially in terms of the ways Malta could emerge stronger from the negative episode of the greylisting. "In the midst of our enthusiasm to turn over the page and press the restart but- ton, let us not overlook the ever-present need for reform in the country's inves- tigative, prosecutorial and judicial pro- cesses aimed at bringing the perpetra- tors of financial crime to justice and to seizing their ill-gotten assets. It would be a mistake of epic proportions if we sim- ply were to move on with the belief that all the reforms that needed to be com- pleted are done and dusted, and we are therefore now back to 'business as usual'," Galdes said. He said that the sixth round of MON- EYVAL mutual evaluations is not too far off, and attention will eventually be directed once again to the effectiveness of our law enforcement and criminal jus- tice processes: "We therefore start this new phase in full knowledge that reform will have to continue, encouraged by the major improvements in our supervisory structures and authorities. Looking for- ward to seeing a growth strategy for our financial services sector that prioritises the commitment to combat financial crime and to do so without reservations and without sending conflicting messag- es about the type of business we would like to attract." Galdes said that all stakeholders should also direct their attention towards seizing the growth opportunities brought about by the efforts at strengthening Malta's compliance infrastructure through in- novation and referred to the ambition of Malta potentially becoming a centre of excellence for compliance services and technology. MBA's Secretary General Karol Gabar- retta said that the FATF's decision does not signify in any way that Malta is now "home and dry". "e fact that we have been removed from the grey list is the beginning of a long journey which will need to demon- strate that the progress achieved during these past three years, since the publi- cation of the 2019 MONEYVAL report on Malta. Only through the adoption of the right mindset and through tangi- ble demonstration that our jurisdiction has well and truly turned the page and is now fully committed to do things the way they should always have been done in the first place, will we manage to rein- state the integrity we may have lost dur- ing these last few years," he said. e newly elected Chair of the MBA and CEO of APS Bank plc, Marcel Cas- sar, addressed the delegates and said that Malta's compliance agenda needs to unfold around the core philosophy of a risk-based approach. He added that the country's economic vision, the growth sectors to be prioritised and the policies to promote them need to have the risk- based approach as their barometer. Cassar referred to the emerging high risks resulting from the COVID-19 pandemic and its related threats and vulnerabilities, cryptocurrency and its increasing usage for money laundering purposes, as well as the growing geopo- litical risks and associated disruption of cross-border trade and supply chains. He also focussed on local areas which car- ry a higher risk such as real estate, envi- ronmental crime as well as reputational laundering. He emphasised the need to urgently return to promoting Malta's fi- nancial services in terms of high entry standards, serious regulation and sound prudential supervision. "As banks, we have a key role to play in balancing economic growth with the national compliance agenda. We are in business and our licences carry with them both the privilege as well as the duty to support business activity. But with that comes the obligation to exercise the highest duty of care in safeguarding the integrity of our financial system from the risk of crime – because by doing so we are also safeguarding Malta's reputa- tion," he said. Conference debates need to balance Malta's growth agenda with Financial Crime Compliance standards A full house for the Third AML & Financial Crime Conference, jointly organised by ARQ Group and the Malta Bankers' Association Marcel Cassar, Chair of the MBA (left) and Yehuda Shaffer addressing the conference

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