Here’s an important fact that needs to be considered about the government’s proposals to reduce the power of authorities to freeze assets of money launderers.
The tax departments have such a long backlog of individuals missing their tax payments and returns, that following Malta’s removal from the FATF grey listing, the Attorney-General, Victoria Buttiġieġ prescribed the police and the tax authorities to treat tax delinquency matters below the €500,000 amount as an administrative matter rather than a criminal matter. This threshold also applies to undeclared wealth, so basically, Victoria Buttiġieġ is only prosecuting individuals for money laundering if they exceed €500,000 in amount.
Not everyone in the tax departments agrees with this advice, and surely not the FIAU who have also expressed their position against it to the AG. So, this is not a prescription for immunity. The Inland Revenue Department (income tax) agrees with the AG’s prescription, but not the Police’s Financial Crimes Investigation Department and neither the FIAU.
What’s very noteworthy about this story is that the state has already calibrated its authorities to execute freezing orders only if the money laundered exceeds the €500,000 mark, so, the law that is being proposed by Justice Minister Jonathan Attard, is being consciously and willingly proposed to protect big movers of illicit finance and not the little or common person n the street.
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