Crime and punishment and the financial services

Abstract

Locally, financial services is a fast-growing industry, whilst in neighbouring and developed countries it is already a fully-fledged creature. Malta has been, for the past decade, attempting to promote itself as a prudent and efficient international financial centre. At the same time, Maltese authorities recognised the need for a major overhaul in the framework regulating financial legislation in Malta. Thus, in 1994, a comprehensive set of laws for the financial services sector, ranging from the enactment of totally new laws to the amendment of existing legislation, was enacted. At the basis of the mentioned laws were the principles of professionalism, confidentiality, efficiency and integrity. With development in this field, the Maltese legislator foresaw the possibility of an increase in the related crimes and offences. He therefore saw the need to protect the integrity of both domestic and linked international markets. Consequently the 1994 package places much emphasis on statutory and regulatory requirements for the prevention of financial crimes. Still it is declared policy of all Governments that an ongoing exercise should be carried out in order to curtail financial crimes. The current Finance Minister recently stated that "As a self-governing jurisdiction, Malta runs a reputational risk every time a financial transaction is passed on the Island. Our common aim must be to maintain that reputation at the highest level possible"