FATF votes to greylist Malta

Members of a global anti-money laundering watchdog have voted to add Malta to its grey list, in a decision that could have serious negative repercussions on the country’s economy.

The Financial Action Task Force (FATF) plenary came to the decision shortly after 2.30pm on Wednesday afternoon.

Although no official announcement about the outcome has been made, high-ranking government sources told Times of Malta that Malta had not garnered the required support from FATF members to avoid the greylisting.

The greylisting vote must be formally approved by the FATF’s broader membership before it is confirmed, although that confirmation is generally considered to be a rubber-stamping process.

It is understood that the US did not back Malta during Wednesday’s session.

Sources said Malta was one of two countries that the FATF plenary voted to add to the grey list, with the other being Romania. If those votes are confirmed, they will be the first two EU countries to be added to the list.

Prime Minister Robert Abela and Finance Minister Clyde Caruana are expected to address a press conference later on Wednesday.

Opposition leader Bernard Grech described the decision as a “punishment for the entire nation” and urged the government to set up a unity task force to limit the greylisting damage.

The FATF greylist includes 19 other countries ranging from Albania to Zimbabwe. It includes strife-torn countries such as Syria, Yemen and Myanmar as well as tax havens such as Panama and the Cayman Islands.

Various studies suggest that ending up on the grey list could have far-reaching repercussions on the country’s economy, impacting banking, ease of doing business and the island’s attractiveness to foreign investors.

How was the vote taken? 

Wednesday’s vote was held among 37 jurisdictions and two regional organisations – the European Commission and the Gulf Co-operation Council – that are recognised as members of the FATF.

The vote was held on a draft resolution, drawn up by expert evaluators, that was discussed in another secret meeting held on June 15, 2021.

Malta did not have a say during either of the sittings, though it is understood that the country lobbied members to speak on its behalf.

“Consensus among members” was required to overrule any of the experts’ draft conclusions.

By Ivan Martin, Times of Malta, 23 June 2021

Read more at Times of Malta

Source: riskscreen.com