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, despite having established legal frameworks and institutions to combat these issues. While public sector corruption is not a major obstacle for U.S. businesses, the country grapples with various criminal activities, including human trafficking, drug trafficking, and financial crimes, often exacerbated by the influence of organized crime networks, including foreign mafia groups.

Malta, a strategically located island in the Mediterranean, boasts a politically stable environment conducive to foreign investment, particularly for American businesses. The economy is predominantly service-oriented, with key sectors including shipping, banking, online gaming, and tourism, contributing to a robust GDP growth of approximately 4.6% in 2024, alongside a low unemployment rate of 2.5% to 3.5%. The government actively encourages foreign direct investment (FDI) through various incentives and a transparent regulatory framework, while maintaining a commitment to international trade and investment, further enhanced by its EU membership and favorable tax policies.