- Roles and Responsibilities
- The Financial Intelligence Analysis Unit serves as Malta’s FIU and is the entity designated to fulfil the responsibilities of an FIU set out in the European Union’s Third Money Laundering Directive (Directive 2005/60/EC) and the FATF 40 Recommendations.
The specific responsibilities of the Unit are detailed in Article 16 of the Prevention of Money Laundering Act. These include the following:
- Financial Analysis
- The Financial Analysis Section is tasked with the receipt and analysis of Suspicious Transaction Reports (STR)s and with the collation of information in response to international requests for information received from foreign FIUs. When an STR is received, the Section carries out a comprehensive analysis of the case and draws up an analytical report. This is then presented to the Financial Analysis Committee for a determination as to whether the dissemination of information to the Police should be made on the basis of a reasonable suspicion of money laundering or the funding of terrorism. For the purpose of conducting its analysis, the Unit is empowered to demand information from any natural or legal person, including those that are subject to the Prevention of Money Laundering and Funding of Terrorism Regulations.
Financial analysts are also responsible for gathering information on the financial and commercial activities in Malta with a view to detecting areas that might be vulnerable to money laundering or terrorist financing. The Section’s ongoing compilation and maintenance of comprehensive statistics and records also assists the FIAU in detecting threats and assessing risks on a national level.
- Compliance Monitoring
- The Compliance Section’s principal function is the oversight and monitoring of compliance by subject persons (including Financial Institutions and Designated Non-Financial Businesses and Professions), based on the evolving internal procedures for on-site examinations and off-site monitoring. On-site assessments are either conducted by the compliance officers or by the supervisory authorities concerned, who act on the FIAU’s behalf. In either case the Unit retains responsibility for preparing the relevant compliance reports, which include a list of any remedial action deemed necessary.
Compliance officers are also actively involved in the provision of training to officers of subject persons and in assisting subject persons to develop effective AML/ CFT measures and programmes. They also monitor developments in money laundering and terrorist financing methods, typologies and trends in order to provide guidance and feedback by transmitting updated information to subject persons.
- Legal & International Relations
- The Legal and International Relations Section is responsible for overseeing the international aspects of the FIAU's functions and for providing legal advice to the various Sections of the Unit. Besides the drafting of legal instruments and implementing procedures, the staff within this Section is also tasked with responding to legal queries from subject persons. This Section also oversees the exchange of information with foreign FIUs and both local and foreign supervisory authorities. including the conclusion of Memoranda of Understanding.