The implications of the fifth AML directive on Maltese audit firms : a study

Abstract

Purpose: The purpose of this study is to identify the amendments introduced by the fifth AML directive and examine their implications on Maltese audit firms. The study also seeks to identify difficulties experienced by audit firms to implement the directive and obtain an understanding of Maltese audit firm’s views on money laundering and the role they play in preventing money laundering. Design: The objectives of this study were achieved by holding thirteen semistructured interviews with Maltese audit firms. Interview questions consisted of both open-ended and close-ended questions and were asked to professionals working in the field of AML and compliance. Findings: The findings show that Maltese audit firms have robust AML policies and procedures yet they still incurred various costs in order to comply with the provision of the fifth AML directive. Furthermore, Maltese audit firms have also experienced difficulties when implementing the directive. Conclusions: Despite taking adequate steps to being compliant with the fifth AML directive, Maltese audit firms require further guidance so that any grey areas are crystallised. It is increasingly important that audit firms clearly understand and comply with the provisions of the directive so that they can better combat money laundering. Value: This dissertation hopes to highlight the devastating impact which money laundering can have on the economy and emphasize the important role which both the fifth AML directive and audit firms play in combatting money laundering. This study also aims to provide recommendations on the limitations faced by Maltese audit firms when implementing the fifth AML directive.