Relative to the deficiencies observed in Malta’s compliance with the anti-money laundering and terrorism financing (AML/CFT) act, the International Monetary Fund (IMF) advised the country to persist in dealing with the deficiencies to avoid financial risks. In its article IV, IMF concluded that Malta has performed better than other EU nations in terms of social, economic activities, however, this depends on how long economic activity will undergo imbalance. The IMF continued, noting that the only major challenge facing Malta now is the need to continue in addressing the deficiencies associated with the AML and CFT framework. The report also addressed the need to focus more on understanding risks and monitoring the activities of banks and other financial institutions.
Also, the IMF stated that it is extremely essential that the financial supervisor in Malta is made independent. It also advised the need for updating the existing legal framework and introducing of the administrative regime to ensure orderliness and timeliness in closing a bank that fails. The IMF also mentioned in the report that, a significant focus should be put on adopting general guidelines in project appraisal, selection, and execution of cost-benefit analysis on projects, as well as the need to promote access to affordable housing. Finally, the government of Malta should ensure that other identified challenges are addressed not leaving out the importance of strengthening the fight against corruption and increasing the efficiency of the judicial system.
