The European Union suspects Malta of financing terrorism

The Maltese context

By offering attractive taxation and a referent authority (the Malta Gaming Authority), the island of Malta has quickly become a key jurisdiction in Europe when it comes to gambling. Moreover, from many international operators have set up their respective headquarters in this tiny country which is 316 km2 and has a little less than 500,000 inhabitants. Although numerous investigations have often been carried out by the Maltese authorities concerning possible malfeasance in the gambling sector, they have rarely resulted in legal proceedings.

Moneyval's observation

For its part, Moneyval also believes that the Maltese system is insufficient to stem money laundering and terrorist financing. In particular, the Committee of Experts calls on local authorities to strengthen measures to combat this scourge more effectively. This includes a greater frequency of anti-fraud checks, but also more dissuasive penalties if the violation is proven. Moneyval notes that several important cases related to financial offences in the gambling sector have not been adequately dealt with by Malta.

December 2020 as deadline

Based on this unequivocal observation, the European Union has set, through Moneyval, the month of December 2020 as the deadline for the Maltese State. Until then, the government will have to correct the shortcomings of its system with the support of the Malta Gaming Authority and, of course, Moneyval. It goes without saying that if no progress has been made by the December 2020 deadline, the small island can expect heavy sanctions, which would fundamentally change the online gambling sector in Europe...