It’s not just one shade of grey | Alex Muscat

The placing of Malta on the grey list was painful, but we will get through this. The first thing to say is the obvious – this issue is not black and white. That’s why the word “grey” is used. Malta is clearly doing many things right, but the criticism levelled at us is that there are things we can do better. Indeed, there are many shades of grey.

The Financial Action Task Force (FATF) exists to tackle global money laundering and terrorist financing. That is what we want to do too. We are on the same page.

But we have to ask why it decided to grey list Malta when another international body, the Council of Europe’s expert group Moneyval, had already found that Malta was no longer “non-compliant” with financial crime standards?

Moneyval recognised that Malta had gone to great lengths to tighten procedures and improve detection and enforcement. Many Maltese and Gozitans are only too aware of this because of the extra checks they face in their everyday activities of banking and opening savings accounts.

We engage with international bodies, listen to what they suggest and take action to improve things. That’s why the ruling of the FATF is unjust.

We know that we deserved a much better outcome. We have long been working hard to ensure that we comply with any suggestions put forward. The Maltese government implemented substantial changes to further bolster the rule of law in Malta, whilst also ensuring that institutions have their systems and structures in place. We spent over €125 million to strengthen our structures in the fight against money laundering mechanisms and other malicious activities, increasing workforce by over 50%. Positive results were showing. Investigations against money laundering surged drastically, with an increase in prosecutions and investigation orders. Still, we remain committed to continue our reform programme.

I have no doubt that companies and investors, currently opening here, appreciate we are a serious jurisdiction. They have no reason for alarm and will carry on their business as before.

Potential new investors will take note of the FATF's decision, but they will also study the approval from Moneyval and the verdicts of the various international credit agencies, who rate Malta highly.  Malta is still regarded as one of the best places in Europe – both for investing and good quality of life.

It is not a question of rethinking our economic model, as the Leader of the Opposition thinks, but to further strengthen it and explore new economic niches. A case in point is the nomad residence permit we are launching. It allows people to live in Malta while carrying out their work in another country, remotely. They continue to pay income tax in their home country but make an economic contribution to Malta through their spending. Digital nomads have higher disposal incomes than tourists and remain in the country longer, so their spending is greater.

There are those who like to paint Malta as some kind of rogue state. The truth is we are a modern parliamentary democracy with an independent judiciary and rule of law. We are in the European mainstream, acting as a team player in the E.U. And that is how we shall continue to behave. We will engage with our colleagues in Europe and beyond. We shall continue to uphold the highest democratic values and we will continue with our programme of reform. We are not shy about doing things better. In fact, we relish the opportunity to prove our worth.