https://www.um.edu.mt/library/oar/handle/123456789/86755 Mon, 06 Apr 2026 00:12:13 GMT 2026-04-06T00:12:13Z https://www.um.edu.mt/library/oar/handle/123456789/86838 Title: Financial crime : an assessment of Moneyval reports on top AML scandal countries and the integration of the new institutional architecture for anti-money laundering Abstract: With financial crime becoming an ever-growing issue and money laundering becoming a subject of current concern at an international level, the accrescent importance of a regulated approach to fight financial crime of such nature is felt significantly across the globe. With a highlighted focus on the local Maltese jurisdiction, the rationale of this thesis is predominantly that of assessing recent regulatory efforts concerned with the combat of money laundering in particular. Specific reference to the most current findings emanating at a European level, particularly focusing on the series of jurisdictional evaluations carried out by the MONEYVAL mechanism as part of the Council of Europe will be highlighted. Shedding a distinct focus on the European situation specifically, this research seeks to explore how the notion of anti-money laundering has been highlighted drastically in significant years. Consequently, this resulted in countless regulation issued specifically targeting such global phenomenon. Whilst referring to Maltese regulation and legislation in particular, this research also acknowledges the drastic increase of regulation at a European Union level. This is achieved through a series of AML directives making reference to such throughout the Chapters. Based on the aforementioned, this research further seeks to explore the introduction of proper AML internal architecture from the perspective of subject persons, analysing such from a Maltese financial organisation perspective. In gaining a particular insight into the industry from such perspective, a discussion interview was held with senior manager Deborah Gatt. Ms. Gatt works within the industry, with a local giant corporate service provider and one of the big four players in the area. She is responsible for financial crime and regulatory. The research considers the diverse expectations of such financial market players with regards to fulfilling their compliance obligations in the realm of money laundering at a national level. It also suggests the way forward in light of the introduction of technological innovation and emerging technologies being possibly integrated in AML regimes. Furthermore, the research explores the benefits of such in complying to future legal and regulatory obligations in this regard. Description: M.A. Fin. Serv.(Melit.) Fri, 01 Jan 2021 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/86838 2021-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/86837 Title: Analysing the effectiveness of the European Union's legislative framework in addressing the challenges of money laundering and financing of terrorism in a digitalised world Abstract: In today’s technology-dependent world, digitalisation is a reality affecting most of the global population, mainly individuals and companies residing in developed countries. One of the key areas being highly impacted by this global phenomenon is that of financial services. Despite the benefits of digital finance, such innovative tools also tend to be used by financial criminals to launder money and finance terrorism in an easier and discreet manner. Although digital financial commodities have been around for several years, the recent sudden leap forward in their availability together with cross-border regulatory struggles for consistency have created a very dangerous threat of money laundering and financing of terrorism. Harmonisation could be deemed as one of the main remedies against cross-border financial criminality. It has always been a core pillar of the European Single Market, based on reducing discrepancies between legal frameworks of countries as a step towards economic integration and a liberalised market. In order to promote harmonious development, it is very important to develop and pursue actions leading to the strengthening of economic cohesion, with the objective of reducing disparities between various European regions. Globalisation represents an ulterior motive for European legislators to remove barriers between national legislative frameworks to facilitate regulatory cooperation and enforceability. Moreover, centralising of regulatory powers would be helpful to erode discrepancies within supervisory architectures for stronger Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT). The Fifth Anti-Money Laundering Directive is currently the main the European Union (EU) law in relation to this context. It represents an improved version of the preceding laws but fails to address certain aspects such as the anonymity of virtual financial tools and several other legal loopholes. Its nature as a Directive results in issues related to its transposition into the laws of Member States. Hence, there are aspects where harmonisation could be key for a stronger legislative framework. The present context also involves the implemented FinTech Action Plan which also included elements in relation to money laundering and financing of terrorism using technological tools. However, an Action Plan entirely dedicated to AML/CFT is required in line with evolving challenges. When it comes to the supervisory network in relation to AML/CFT, evident fragmentation within the European regulatory architecture is resulting in significant difficulties in consistently enforcing the laws on a cross-border basis. New proposals in relation to the European AML/CFT framework are indicating that the EU is moving towards a more harmonised approach of regulating this area. Despite some improved amendments proposed by the Sixth Anti-Money Laundering Directive, there are still certain limitations vis-à-vis cross-border criminality. The formulation of a single European rulebook for AML/CFT in the form of a Regulation should be proposed with the scope of having uniform application of relevant law across all EU Member States. Amongst the several initiatives which fall under the newly proposed AML/CFT Action Plan, there is the idea involving centralisation of supervisory powers to the EU-level. This could either be done by further strengthening the leading role of the European Banking Authority in AML/CFT, or by creating a new European Supervisory Authority specialised in this area of regulation. However, some fragmentations could still be present at the local level in the interactions between the National Competent Authorities and respective Financial Intelligence Units. Although harmonisation might eventually be effective in this context, there are factors which must be taken into consideration. Apart from striking a right balance between harmonisation and autonomy of Member States, EU legislators must aim at avoiding over-regulation, reaping the benefits of technology, and enhancing governance. Hence, balanced harmonisation and centralisation coupled with strong cooperation between all the authorities would significantly improve the abilities of the EU in strengthening AML/CFT in today’s digitalised world. Description: M.A. Fin. Serv.(Melit.) Fri, 01 Jan 2021 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/86837 2021-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/86781 Title: Financial stability regimes adopted in the EU and the US after the global financial crisis : a comparison of the regimes and an analysis of their preparedness for the next financial crisis Abstract: This dissertation aims to analyse the issue of systemic risk and the macroprudential supervisory entities setup in the EU and US after the global financial crisis. To reach this aim, research is carried out on the different elements of the European Systemic Risk Board and Financial Stability Oversight Council, such as governance, accountability, functions and powers which policymakers have provided for the entities through legislation. The developments undertaken over the years on the two macroprudential supervisory entities are also researched in order to better understand the amendments carried out over the years. Through the research gathered, a comparative analysis will be undertaken on the features of the European Systemic Risk Board and the Financial Stability Oversight Council to determine the differences and similarities of the two entities. This research is undertaken in order to answer the research question of which entity between the ESRB and the FSOC is better suited at mitigating systemic risks and the next financial crisis. The research question developed from the hypothesis that whilst initially the FSOC was given enhanced powers when compared with the ESRB, making it better suited at ensuring macroprudential supervision, over the years these powers have been watered down to the extent that the ESRB is now better suited at supervising entities and ensuring that systemic risk is mitigated. Therefore, by undertaking this research, an understanding is sought on how the amendments undertaken on the two entities in recent years have impacted their ability to reach the original objectives set for them as well as which entity is now better suited at mitigating systemic risk. Description: M.A. Fin. Serv.(Melit.) Fri, 01 Jan 2021 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/86781 2021-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/86780 Title: A critical analysis of the application of the risk-based approach to anti-money laundering Abstract: As a topic, money laundering has been gaining traction since the 1980s in view of it’s ever-increasing impact on economics and societies worldwide. In essence, money laundering may be described as a technique to process proceeds of crime, by concealing the illegitimate origin of funds and integrating them within the financial system to render such proceeds appear legitimate. The United Nations Office on Drugs and Crime estimates that the amount of money being laundered worldwide ranges between 2%-5% of global gross domes*c product which amounts to circa $800 billion - $2 trillion. Since 2012, the regulatory framework towards combatting financial crime shifted from a rules based to a risk based approach. This shift meant that jurisdictions and institutions therein must undertake a self assessment to analyse the areas to which they are susceptible to money laundering and financing of terrorism. Subsequent to this assessment jurisdictions and institutions are required to devise and implement policies, procedures and controls in proportion to the risks they are exposed to. Through this research the author aims to asses the mechanics of the Risk Based Approach to AML/CFT by evaluating the perceptions of local industry practitioners and officers from the local supervisory authority which regulates and supervises Anti-Money Laundering by virtue of the Prevention of Money Laundering Act, the Financial Intelligence Analysis Unit. This research shall focus on assessing such actors’ perception the RBA in terms of it's efficacy and challenges, whilst also uncovering ways of improving the overall regulatory framework. Ultimately for nations to stifle the laundering of proceeds of crime and financing of terrorism, strong and clear regulation is necessary together with continuous communication between different actors to ensure there is a coherent understanding of the regulatory obligations whilst ensuring effective implementation and further detection of suspicious activity which may bring to justice those engaging in such illicit activities. Description: M.A. Fin. Serv.(Melit.) Fri, 01 Jan 2021 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/86780 2021-01-01T00:00:00Z