Seven years ago, on 16th October 2017, journalist, blogger and anti-corruption activist Daphne Caruana Galizia was driving close to her home in Bidnija, when a car bomb placed in her leased Peugeot 108 exploded, killing her instantly. The horrific event marked one of the darkest episodes in Malta’s history.

Seven years later, the legacy behind the woman, described as a ‘one-woman Wikileaks’ remains complicated.  Her prolific career, and her impactful work, significantly reshaped Malta’s corporate landscape by exposing deep-rooted corruption involving both political and business elites, leading to heightened scrutiny. Here, WhosWho.mt explores the enduring impact of the assassinated journalist’s work.

1. Exposing corruption and financial malpractice

Daphne Caruana Galizia was instrumental in uncovering key elements of the Panama Papers as they related to Malta. In 2016, she reported extensively on the offshore companies of prominent Maltese figures, including then-Energy Minister Konrad Mizzi and the Prime Minister’s Chief of Staff, Keith Schembri.

These revelations demonstrated how politicians and their associates used secret offshore accounts, raising serious concerns about money laundering and tax evasion. She exposed business entities’ roles in these corrupt networks, showing how certain companies facilitated these practices.

This included the setting up of the company 17 Black, later revealed to be a Dubai-based company owned by Yorgen Fenech, one of the business magnates behind the Tumas empire and the man who stands accused of the assassination of the journalist.

In April 2018, it was revealed that the company had a total of €1.3 million ($1.6 million) transferred to it.

Her work led to international scrutiny, with the European Parliament even investigating the financial practices of Maltese authorities. This forced businesses and financial institutions in Malta to become more transparent, as they faced increased pressure from both local and international regulators.

2. Promoting stronger corporate governance and compliance

Ms Caruana Galizia’s revelations about corruption and financial misconduct contributed to a climate of reform in Malta, especially within the financial services sector. In response to these scandals, among other developments, Malta's Financial Intelligence Analysis Unit (FIAU) increased its efforts to monitor financial crime, and the Malta Financial Services Authority (MFSA) began imposing stricter regulations on banks and businesses to meet EU anti-money laundering (AML) standards.

For instance, investigations led to criminal charges on money laundering being filed against Pilatus Bank, which she wrote extensively about, and the bank was eventually shut down by regulators, after the MFSA asked the European Central Bank to revoke its license. The regulatory response was strengthened by the public outcry over the revelations made through her work, highlighting a shift in governance structures to restore credibility and transparency.

In 2022, the FIAU unveiled a new three-year strategy which included plans of introducing automation measures to speed up certain processes, including the review of suspicious transaction reports. At the time, the unit had flagged the issue that only 20 per cent of foreign-owned companies in Malta held a local bank account, making it more difficult for the authorities to investigate these entities. The FIAU’s strategy largely came in response to wider pressures by a global watchdog, the Financial Action Task Force (FATF), however Ms Caruana Galizia’s writings on corporate transparency pointed to the same issues.

In addition, to align with EU AML directives, the MFSA introduced stronger supervision of banking and financial institutions. This was done through comprehensive updates in areas like risk management, governance, and compliance with Basel III standards, focusing on credit, market operational, and ESG risk.

3. Increased regulatory oversight

Following the exposure of corruption, Malta was placed on the Financial Action Task Force (FATF) grey list in June 2021, which was in part a consequence of systemic issues that her investigations had helped to uncover.

This placement signalled that Malta’s financial sector lacked adequate safeguards against money laundering and terrorist financing.

Some of the issues red flagged by FATF were related to the detection of inaccurate company ownership information and sanctions on gatekeepers who fail to obtain accurate beneficial ownership information, as well as the pursuit of tax-based money laundering cases utilising financial intelligence. Indeed, the greylisting highlighted systemic issues, many of which were exacerbated by the corruption she exposed.

This prompted reforms by the Government, including bolstering the capacity of financial institutions and revising compliance frameworks to meet international standards. The increased regulatory oversight directly affected how businesses operated, particularly those in the financial and legal services sectors.

4. Reputational impact on Maltese businesses

Ms Caruana Galizia’s investigative work had a significant reputational impact on Malta’s corporate sector, particularly among businesses linked to corruption.

In a statement in 2021, shortly after the greylisting experience, the Malta Chamber of SMEs had said that operating an enterprise in Malta had become very difficult over the years.

“…This still does not compare to losing Malta’s reputation and operating from a grey-listed country. Maltese businesses do not want to operate within an economy of shady repute,” it had stated at the time. The reputational risk to Malta was cumulative and driven by a combination of her work, international investigations, and regulatory failures.

Consequently, Maltese companies faced greater scrutiny when conducting business with international partners, and several entities were forced to address concerns over their own compliance practices. This led to efforts from businesses to improve structures to regain trust and mitigate reputational damage.

5. Influence on whistleblower protection and journalistic oversight

The public reaction to her assassination in 2017 led to discussions about the safety of journalists and the need for stronger whistleblower protections.

The Government passed new laws to provide better legal safeguards for whistleblowers who might expose corruption in the corporate and political spheres. This shift, prompted in part by her work, created an environment where more individuals could come forward with information about corporate misconduct without fearing for their safety.