Few people realise the sheer scale of work that goes on quietly behind the scenes to protect Malta’s financial systems from abuse. At the heart of this effort is a tireless agency, the Financial Intelligence Analysis Unit (FIAU), which is tasked with combating money laundering and the financing of terrorism (AML/CFT).

WhosWho.mt obtained access to the FIAU’s freshly published annual report for the year 2024, which provides detail about the work it carried out during the 12 months in review. During an interview, Director Alfred Zammit explained how the FIAU is not only safeguarding the country’s reputation but actively shaping international standards that will impact Malta for years to come.

“Behind every euro laundered, there are real victims,” Mr Zammit explains from the outset, “Financial crime is not a victimless crime. These funds are often the lifeline of terrible, unmentionable crimes. So, by tackling abuse at a financial level, we are contributing directly towards a better world,” Mr Zammit emphasises.

The national agency is driven by a sense of duty, which is most evident in the dedicated individuals and teams that make up its impressive 175 employee compliment. The FIAU has beefed up its rank and file considerably in the recent years, to be in ship shape to combat the increasingly sophisticated criminal underworld.

“Our employees are our greatest assets, and their experience and dedication allow us to rise above our call of duty and exceed our own expectations. In fact, we invest handsomely in their skills, clocking no less than 11,000 hours of training last year alone. This extends to offering international opportunities to ensure that our people stay ahead in a rapidly changing environment,” Mr Zammit adds.

The FIAU’s efforts are guided by its 2023-2026 strategic plan, which emphasises a risk-based approach, focusing its resources where threats are greatest.

“This underpins everything we do, as we encourage the private sector to join us in this mission, and adopt the same mindset. Companies and economic operators at large are in fact our first line of defence against ill-practices. We cannot do our job without them. Encouragingly, we have noticed how local firms are showing great maturity in their understanding of AML/CFT obligations, which is also manifested at times through the nature and complexity of the queries that the FIAU receives from firms.”

This maturity is critical at a national level, especially as Malta prepares to face a serious test soon. “In 2028, Malta will undergo its next MONEYVAL evaluation, the first since Malta emerged from grey listing. Naturally that was no walk in the park for anyone, however it was a great opportunity to further understand what the deficiencies and strengths of our systems were and address them accordingly. Following a nation-wide concerted effort and several reforms which started well ahead of Malta’s grey-listing, the FIAU now commands an excellent international reputation,” Mr Zammit says.

The FIAU has grown to enjoy a sterling reputation with its international counterparts, so much that it is often invited to participate and contribute at specialised training events, conferences and fellow evaluation exercises.

“We are very pleased to note that the FIAU has managed to reach a very desirable international standing among its peers. The way our agency and its work are viewed by bodies like MONEYVAL, the Egmont Group, the European Banking Authority and the European Commission is something that makes us proud,” he says. In fact, the FIAU is often participating in international working groups offering contributions at a legal level, as it takes an active role in the shaping of European legislation.

“As the EU transitions from directives to directly applicable regulations in AML/CFT, Malta, through the FIAU, has had a reputable voice and a seat at the discussion tables. It’s vital we participate in this kind of fora, to ensure future regulations reflects the realities on the ground, and it can actually be implemented in practice. We understand the difficulties the industry faces,” Mr Zammit notes.

Moreover, the FIAU often forms part of the specialised équipe of professionals who would be entrusted to carry out evaluations for other territories, with Mr Zammit himself having participated in two MONEYVAL assessments, while his colleagues contributed to the assessments of another five jurisdictions. These assessments, which last approximately a whole year, and involve two to three week onsite missions in the countries being assessed, provide us with a unique opportunity to learn from the best practices of other jurisdictions, while also strengthening Malta’s own reputation in this field.

Three major events in 2024 and early 2025 underscored Malta’s international leadership in the space of AML/CFT. In January 2024, the FIAU hosted the Egmont Group Working and Regional Group Meetings. Egmont is a global network of FIUs, and the Malta meeting welcomed 140 FIUs with 423 delegates from around the world. During the event, the FIAU not only facilitated the hosting of the meetings but also delivered key presentations on best practices to its counterparts, and signed a number of memoranda of understanding with various financial intelligence units.

In June 2024, the FIAU organised a specialist event on administrative enforcement, exploring how authorities enforce compliance, a topic that is agreed on in principle but varies greatly in practice across countries. “For the event we hosted 59 authorities from some 40 jurisdictions, underscoring Malta’s role as a convener of crucial conversations,” Mr Zammit notes.

Further cementing the FIAU’s drive for leadership in the sector, the agency recently volunteered to head an Egmont project on AML supervision of virtual asset service providers (VASPs). The outcome of this culminated in an international event held last April in Malta, dedicated to the supervisions of virtual asset service providers.

180 delegates from around 75 jurisdictions attended this three-day training symposium hosted by TATWG and the FIAU.

“It is essential we stay ahead of the game in whatever we do, however in this particular sector which is known to evolve much more rapidly than others, it is a must. Financial crime risks are evolving, especially with the growth of the virtual assets sector, hence we want to remain well-positioned to understand and take fair action in this field,” Zammit says.

The FIAU is already gearing up for the sweeping changes of the new EU AML package, expected to come into force in 2027, which is expected to have wide-ranging implications. “For instance, Malta’s centralised bank account register, which banks currently update every seven days, will expand to include crypto wallets and investment products. Even certain unexpected sectors, like certain higher-risk football clubs, will become obliged entities under the new regime. To meet these challenges, the FIAU is investing heavily in its own infrastructure. New tech projects, including an advanced case management system and a data warehouse, will enable smarter, more transparent oversight,” Mr Zammit explains.

“Our ultimate goal is to drive compliance, not merely be a watchdog that imposes fines. The recent Constitutional Court rulings which confirmed that the Malta’s AML/CFT legal framework stands on solid ground, provided much-needed clarity and direction,” Mr Zammit says.

Looking ahead, Mr Zammit remains focused on delivering the FIAU’s strategic objectives. “We’re already halfway through 2025, and we are on track with our workplan of ambitions for the year. Having said that we are also mindful to continue delivering on our day-to-day obligations. This means adopting a risk-based approach to operations, boosting transparency, and ensuring Malta’s AML framework remains robust and dependable,” Mr Zammit concludes.