IMF states that Malta has insufficient AML and CFT regulation

03 Mar, 2019
by Richard Allen
IMF states that Malta has insufficient AML and CFT regulation

The International Monetary Fund (IMF) has recommended Malta take “urgent action” action regarding critical gaps in the island’s efforts to counter Financing of terrorism (CFT) and Anti-Money Laundering (AML), Times of Malta reports.

The IMF’s Financial System Stability Assessment Report details the quality of regulatory and supervisory framework on the blockchain island. The IMF maintains that, in order to address shortcomings in AML/CFT policies, a multipronged approach is required. The report goes on to state that failing to address these issues will not only affect the financial system but the broader economy as a whole.

It’s also highlighted that more strenuous verification of owner information is required with specific reference made to risk sensitive accounts such as digital assets, e-gaming and IIP-related funds.

Read more: Is Malta really a blockchain island? Binance CEO certainly thinks so

With reference to blockchain and cryptocurrencies, the report recommends that more resources should immediately be dedicated to overseeing cryptocurrency exchanges. The report goes on to state that the Malta Financial Services Agency (MFSA) should strengthen its supervisory and early intervention procedures to better handle the increasing number of licensed financial institutions.

Chepicap recently reported that many banks in the country are declining their services to cryptocurrency and blockchain-related businesses, despite the island’s crypto-friendly regulation.

Read more: Companies reportedly struggling to get bank accounts on "blockchain island"


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