Malta Country Summary

FATF Status

Malta is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Malta was undertaken in 2021. According to that Evaluation, Malta was deemed Compliant for 12 and Largely Compliant for 28 of the FATF 40 Recommendations. No review of the 11 areas of Effectiveness of Malta's AML/CFT Regime was undertaken in the Follow-up MER and, therefore, these remain assessed at being Highly Effective for 0 and Substantially Effective for 2.

Malta faces significant challenges related to crime and corruption, with ongoing issues in human trafficking, drug trafficking, and financial crimes, including money laundering. While the government has implemented various measures to combat corruption and improve oversight, concerns about political involvement in organized crime and the effectiveness of the judicial system persist, highlighting the need for continued reforms and enhanced resilience against criminal activities.

Malta's economy is characterized by its strategic location in the Mediterranean, political stability, and a service-oriented structure, with key sectors including shipping, finance, online gaming, and tourism. After a robust recovery from the pandemic, the country experienced a notable GDP growth of 6.1% in 2023, although future growth is expected to slow due to economic conditions in its main trading partners. The Maltese government actively promotes foreign direct investment (FDI) through various incentives and a transparent regulatory framework, making it an attractive destination for international investors, particularly in high-tech manufacturing, digital technologies, and renewable energy sectors.