A report by the International Monetary Fund (IMF) has sounded warnings on Malta’s reliance on the Individual Investor Programme (IIP), more commonly known as the cash-for-passports scheme, and on rising local property prices.
In its report, the IMF said that there was a need for sustained efforts to safeguard the financial system’s integrity, through robust and effective enforcement of anti-money-laundering laws.
Members of the European Parliament were highly critical of the passport scheme during a recent debate on the rule of law in Malta, and the European Commission is conducting a review of all such schemes in the EU.
The IMF said anti-money-laundering laws were critical given fast-growing remote-gaming activity and the high demand for the Individual Investor Programme.
Malta has yet to implement the EU’s latest anti-money-laundering rules, a point which was picked up on by the IMF.
It also said the increasing number of financial firms under supervision, the rapid development of new products and the evolving regulatory environment had put the MFSA under strain, despite its recent expansion.
Ensuring that the MFSA had adequate resources was critical to preserving its...
