Malta will have to increase its AML or anti-money laundering policing levels, to match the growth in the financial services, according to the European Union.

The requirement of an effective AML regime

Just like it was reported, the European Commission stated that the moves of the island jurisdiction to boost its crypto sector, together with stabilizing the gaming and financial industries, mean an effective AML regime is required.

The comments actually came in recommendations which were made by the member nation of the European Union regarding the spending of the funding of the EU.

In fact, the commission claimed that it was quite “optimistic” that the Financial Intelligence Analysis Unit of Malta saw increases in budget, as well as staffing levels, together with other procedures being ramped up.

But, it sees scope for the government failings which could have an effect on the business prospects of Malta. The commission said that the governance shortcomings, especially in the fight against corruption, could adversely affect the business environment, as well as weigh negativity on investment. In particular, there is some risk of conflict of interests at different governmental levels.

Malta’s Economic Crimes Unit isn’t adequately staffed

Moreover, the commission said that the Economic Crimes Unit of the Malta Police Force isn’t adequately staffed according to the same reports.

The commission added that in this context, it is essential to couple a strengthened legislative framework with through and timely implementation.

Malta was actively working to create a friendly regulatory regime for the crypto and blockchain industry. To that particular end, the government of the island passed a few pieces of legislation last summer that were since then notable crypto exchanges like OKCoin and Binance open offices there.

CipherTrace’s Compliance Monitoring product for protection

The nation already took some steps to spot suspicious crypto activity more effectively. Last month, the MFSA or Malta Financial Services Authority announced that it is going to integrate the Compliance Monitoring product of CipherTrace to protect consumers, business partners, as well as investors.

The tool actually uses blockchain analytics, as well as forensics to look out for suspicious wallets and addresses, according to the website of CipherTrace.

The firm even said that it profiles crypto exchanges, coin mixers, ATMs and money laundering system, together with known criminal addresses, to score transactions and also gauge the risk levels.

The MFSA also said that the system de-anonymizes blockchain addresses, permitting the regulators to evaluate, as well as monitor the trustworthiness of virtual asset businesses.


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