The Financial Intelligence Analysis Unit (FIAU) is the national central agency in

Malta Malta, officially the Republic of Malta, is an island country in Southern Europe located in the Mediterranean Sea, between Sicily and North Africa. It consists of an archipelago south of Italy, east of Tunisia, and north of Libya. The two ...

responsible for receiving, analyzing, and disseminating

financial intelligence Financial intelligence (FININT) is the gathering of information about the financial affairs of entities of interest, to understand their nature and capabilities, and predict their intentions. Generally the term applies in the context of law enfo ...

to combat

money laundering Money laundering is the process of illegally concealing the origin of money obtained from illicit activities (often known as dirty money) such as drug trafficking, sex work, terrorism, corruption, and embezzlement, and converting the funds i ...

and

terrorism financing Terrorism financing is the provision of funds or providing financial support to individual terrorists or non-state actors. Most countries have implemented measures to counter terrorism financing (CTF) often as part of their money laundering law ...

. It was founded on October 1, 2002. The FIAU is an independent government agency. It operates as the national

unit (FIU) in compliance with international standards and frameworks.

Powers and functions

The FIAU collects financial intelligence and passes it on to the police, who can then carry out criminal investigations or arrest/prosecute any person. The FIAU also exchanges information with foreign financial intelligence agencies and supervisory authorities in Malta or overseas to investigate suspicious financial activities. As an administrative intelligence agency, FIAU can demand and collect information from any individual, authority, or entity, including the police, government ministry, public department/agency, and any supervisory authority. Such a demand for information "overrides any obligation of secrecy or confidentiality under any other law." FIAU operates independently and its activities are not disclosed on the public domain.

Activities

In 2022, FIAU organized its first international conference of bank account register administrators and other specialists from 21 European countries, which was endorsed by the

European Commission The European Commission (EC) is the primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...

Notable cases and controversies

According to its 2019 annual report, the FIAU forwarded 61 cases of money laundering to the police for investigation. In addition, it received more than 2,500 suspicious transaction reports from banks, legal professionals, casinos, gaming companies and real estate agencies, up by 65% from the previous year. The Financial Intelligence Analysis Unit operates opposite Malta's financial entities. One of its primary responsibilities is enforcing Anti-Money Laundering (AML) legislation. Over the years, the FIAU expanded the criteria for violations under said legislation, leading to increased administrative penalties. Administrative penalties in 2021 increased to €12.4 million from €4.7 million in 2020, creating speculations among experts in the financial sector that FIAU is enjoying the "moral authority to impose fines." The FIAU gained media attention due to its case against

Pilatus Bank Pilatus Bank Plc was a bank established in Ta' Xbiex, Malta. The bank was created in 2013 to provide private and commercial banking services to high net-worth individuals and was closed down in 2018, after major local and international money laund ...

in 2018. In September 2022, Pilatus Bank owner

Ali Sadr Hasheminejad Ali Sadr Hashemi Nejad also known as Ali Sadr, is an American businessman. In 2018, he fought federal charges brought against him for allegedly violating the U.S. sanctions against Iran in connection to a construction project of low-income hous ...

, won his case in front of the

International Centre for Settlement of Investment Disputes The International Centre for Settlement of Investment Disputes (ICSID) is an international arbitration institution established in 1966 for legal dispute resolution and conciliation between international investors and States. ICSID is part of ...

, which recommended a suspension of all proceedings by Malta against Ali Sadr until it decided on the case, after he claimed that he was wrongfully prosecuted by the Maltese financial authorities.

References

External links

* {{National intelligence agencies in Europe 2002 establishments in Malta Government agencies established in 2002 Financial regulatory authorities of Malta

Powers and functions

Activities

Notable cases and controversies

See also

References

External links