The International Monetary Fund (IMF) has issued a Financial System Stability Assessment Report on the Malta Financial Services Authority (MFSA). The report states that there are alarming gaps in MFSA’s regulatory framework for anti-money laundering and combating financing of terrorism. It also been reported that Malta-based blockchain companies are finding difficulty in opening bank accounts.
As reported by Times of Malta, the IMF has stated that a multi-prong approach is needed to fight against money laundering and terrorism financing by improving the anti-money laundering and combating financing of terrorism systems.
It has also stated that MFSA needs an effective screening processes for beneficiary owner information and checking of risk-sensitive accounts, especially for non-resident clients, including opaque firms, new technologies, and IIP-related funds.
In addition, the report has also highlighted about blockchain technology and cryptocurrencies related transactions. It has advised employing of more resources to supervise these service providers.