Grey listing: after years of zero enforcement on money laundering

The grey listing announced earlier during the week as a result of a decision by the Financial Action Task Force (FATF) is definitely not fair on the Maltese people.

The grey list is government’s making. However, the opposition certainly has a finger in the pie too as it is ultimately responsible for the weak institutions which it left in place in 2013. These weak institutions facilitated the current mess.

We should all be saddened by the decision of the FATF (Financial Action Task Force) to have Malta on its grey list, even though this course of action was expected.  

Government spokespersons have been emphasising that a lot of regulatory sprucing and reinforcement has been taken in hand.  However, they did not tell us that this has been done after several years of zero enforcement. After years having regulatory authorities such as FIAU staffed by collaborators of known criminals, such as Silvio Valletta, former Deputy Commissioner of Police.

We have had all Labour MPs in Parliament refusing to condemn Konrad Mizzi and Keith Schembri when their Panama Papers involvement was made public. All of them have contributed to this grey listing. 

Do you remember Evarist Bartolo explaining on Hard Talk why he voted in favour of Mizzi and Schembri? He had a strategy for survival, hoping “to live and fight another day”. Or Leo Brincat’s explanation when being scrutinised by the EU Parliament Budgetary Control Committee prior to his appointment at the European Court of Auditors? Leo Brincat had than stated that he did not want to live as a hero for one day, to be subsequently condemned to the wilderness for the rest of his life!

We have had the Commissioner of Police not investigating money laundering cases for years on end. It is only recently that a new Police Commissioner has made investigations and prosecutions possible.

Unfortunately, the action against money laundering has been late in coming. Considerable damage has resulted in the meantime. Government criminal complicity in all this has seriously damaged the economy and society.  It is those in the lower income levels who will feel most of the impacts of all this. They need our empathy. It is they who need most protection at this point in time.

Government with the support of the opposition has over the years developed a “national consensus” on the financial sector including the setup which makes it possible for international tax evasion to make use of Malta as a base. Together with the sale of citizenship scheme this has further contributed to the erosion of Malta’s reputation as a trustworthy jurisdiction.

Anybody remembers the circumstances which led to the 2018 resignation of the MFSA (Malta Financial Services Authority) CEO Joseph Cuschieri following his Las Vegas trip with Yorgen Fenech becoming public knowledge? The trip had been financed by Fenech when Cuschieri was still the Gaming Authority Chief, supposedly regulating Yorgen Fenech’s casino!

All this mess was directed by Joseph Muscat and Edward Scicluna, former Finance Minister who has been rewarded for his endeavours by his appointment as Governor of the Central Bank. Muscat is gone. Scicluna, politically responsible for ensuring that money-laundering structures were functioning, needs to follow him at the earliest. He should either resign or be dismissed forthwith.

It is also pertinent to point out that all this was the subject of the investigative journalism of Daphne Caruana Galizia who was blown up for her efforts to inform us and expose the criminal elite. We have lost a life: a mother, a wife, a journalist.

Immediate action is essential to start rebuilding Malta’s reputation. This should include the immediate repeal of the sale of citizenship scheme and closing the legal loopholes which have transformed Malta into a tax haven.

Carmel Cacopardo
ADPD Chairperson
Published in The Malta Independent – Sunday 27 June 2021