Financial crime Malta graylisted for Financial crimes

Status: 06/24/2021 9:40 a.m.

Corruption, money laundering and “golden passports”: the Mediterranean island of Malta has fallen into twilight. An international institution to combat money laundering now wants to monitor the country more closely. The attempts by the Maltese government to avert the decision of the Financial Action Task Force (FATF) were unsuccessful: The international institution for combating money laundering, terrorist financing and the financing of weapons of mass destruction has put Malta on the gray list for financial crimes, according to the Times newspaper of Malta “reported. Inclusion on this list means that the country is under increased surveillance, that it is being monitored more and more. At the same time, the state undertakes to remedy the deficiencies identified in the context of financial crime. Who is the FATF?

The Financial Action Task Force, based in Paris, is an independent international institution that develops and promotes measures to combat money laundering, the financing of terrorism and the financing of weapons of mass destruction. It was founded in 1989 by the G7 countries and currently has 37 members. More than 200 states and jurisdictions have committed to complying with the FATF standards. The FATF is supported by a secretariat affiliated with the Organization for Economic Cooperation and Development (OECD).

Malta pledges cooperation

Prime Minister Robert Abela confirmed the decision and described it as “unjust”. Most of the concerns expressed by the reviewers have already been addressed. Malta wants to continue with its reform program, said Abela. “We will intensify our exchanges to better explain Malta’s achievements and to ensure that they are respected and understood by the international community.” Malta will never show itself to be uncooperative in the fight against financial crime or resist it, he assured the international partners.

Cayman Islands and Syria are also on the gray list

It is not the first time that Malta has fallen into twilight: the country has already been screened for financial crime more intensely because of its “golden passport” program. Like Cyprus, Malta had granted citizenships in return for financial commitments. The EU Commission then initiated infringement proceedings.

With the jump on the gray list of the FATF there is now a further loss of reputation for the country. As of February 2021, the FATF gray list includes countries such as Burkina Faso, the Cayman Islands, Ghana, Mauritius, Panama, Syria, Uganda, Yemen and Zimbabwe.

Germany holds the FATF presidency

Germany took over the presidency of the FATF in July 2020. The term of office of Marcus Pleyer from the Federal Ministry of Finance ends on June 30, 2022.

Marcus Pleyer is currently the President of the FATF. Image: Felix Zahn / photothek.net

Incidentally, the Federal Republic of Germany is currently also being routinely audited by the FATF. In its last evaluation in 2010, the organization came to the conclusion that Germany was susceptible to money laundering and terrorist financing

Phan Sao Nam at the trial of the first instance Accordingly, Senior Judge Hoang Van Tien, Chief Justice of the People’s Court of Quang Ninh province, said that inmate Phan Sao Nam was arrested and detained on October 27, 2017, serving a prison sentence at Quang Ninh Detention Center under the Ministry of Public Affairs. Security from September 17, 2019. In the process of serving the sentence, inmate Phan Sao Nam has clearly recognized his guilt, actively studied, renovated, strictly observed the laws and rules of the detention facility, has been continuously ranked emulation with “Fair” results (with the Emulation classification decisions attached); and have the first successful record (helping the Investigation Agency to mobilize the subject Le Van Kien who is having an international wanted order to surrender – Document No. 851 / GXN-ANĐT dated 20/11/2019 of Department of Security and Investigation of the Police of Phu Tho province). Civil liability part: Phan Sao Nam has executed more than 1,314 billion VND, including first-instance criminal court fees, illicit profits that the Court is forced to return and more than 387,966,943,921 VND confiscation to supplement the State fund (equal to 89.1% of the obligation). The amount of inmate Phan Sao Nam still has to execute is more than 160 billion VND. After studying the proposal, the opinion of the representative of the People’s Institute of Quang Ninh province at the meeting, the Council to consider reducing the time limit for serving the prison sentence of the People’s Court of Quang Ninh province found that the dossier was made in accordance with the order customary, on time, right authority; prisoners have served more than 1/3 of the sentence (2 years, 5 months and 1 day in prison); During the renovation, there were many progresses; has partially compensated civil obligations (more than half of the obligation); has made a mark; and was proposed by the Quang Ninh Detention Center to reduce the prison term, with an appropriate recommendation. In comparison with the provisions of the law, the Reduction Review Council accepted the proposal of the Quang Ninh Detention Center, reducing the 19 months imprisonment term for inmate Phan Sao Nam. During the next serving period, inmate Phan Sao Nam was very active in reforming and made the second time (helping the Investigation Agency to mobilize the object of Phan Anh Tuan who was hiding abroad to surrender – document) confirmation number 725 / GXN-ANĐT dated September 18, 2020 of the Security and Investigation Agency of the Police of Phu Tho province). As for civil liability, inmate Phan Sao Nam continued to actively mobilize his family to help Nam fulfill the remaining civil liability with the State, having paid more than 5.3 billion VND. On October 14, 2019, the South’s inmate’s family wrote an application to present his extremely difficult economic situation and had not yet been able to continue performing his civil obligations under the Court’s judgment. The application is certified by the People’s Committee of Da Kao ward (District 1, Ho Chi Minh City). Thus, as of October 16, 2019, inmate Phan Sao Nam has served more than 1,300 billion VND out of a total of more than 1,475 billion VND (equal to 89.48% of the obligation); the amount of money still enforced by Nam prisoners is more than 155 billion. On January 15, 2021, Quang Ninh Detention Center made a request to consider reducing the prison term for inmates, with the recommendation of 2 months. The application has been appraised and approved by Department C10, Ministry of Public Security, and is inspected by the People’s Institute of Quang Ninh province in accordance with the law. After considering the proposal to reduce the prison term of Phan Sao Nam, the recommendation of the representative of the People’s Procuracy of Quang Ninh province at the meeting, the Council to consider reducing the time limit for serving the prison sentence of the People’s Court Quang Ninh province found that after being considered for the first reduction, inmate Nam has been consistently classified as a Fair reformer, and continues to actively overcome the consequences of his crime. Up to the time of the second reduction consideration, the remaining prison term is less than 1 year. Comparing the provisions of the law, inmate Phan Sao Nam is eligible to be reduced to the second serving term of imprisonment one time before one round. If he accepts the Camp’s proposal, Phan Sao Nam will receive a second reduction of his sentence, but he still has a practical time limit to serve more than of the penalty declared, in accordance with Clause 2, Article 63 of the Penal Code ( up to the time of the second reduction consideration, inmate Phan Sao Nam has practically served 3 years and 3 months 8 days in prison, also has to serve 1 month and 22 days in prison). Comparing the provisions in Article 63 of the Penal Code, Article 38 of the Law on Execution of Criminal Judgments, the Judgment Reduction Council decides to accept the request of Quang Ninh Prison and reduce the remaining prison term for inmate Phan. Sao Nam in Decision No. 80 / QD-TA dated February 4, 2021 because the remaining imprisonment term is lower than the reduction proposed by the Prison and the Procuracy.