The Malta Gaming Authority has reported a medium-to-high threat level of money laundering threats in the remote gaming sector as part of its latest National Risk Assessment.
However, the MGA said gaming was among other industries such as banking and investment services where there have been “notable improvements.”
Malta’s overall money laundering residual risk has “decreased” when compared to the 2018 NRA, the regulator added.
This, it said, reflects the “effectiveness of mitigating measures implemented by authorities and the private sector.”
The MGA said there was a medium-to-high risk of placement of criminal proceeds through the use of cryptocurrency as a payment method in the 2023 NRA, with placement of criminal proceeds through other means of payments given the same threat level.
However, the threat level of activity by unlicensed entities is currently medium.
In the land-based sector, the MGA said also gave a medium-to-high risk level for the placement of criminal proceeds through means of payment as well as licensed institutions controlled by criminals.
Unlike in the remote gaming sector, there is a medium to high risk level of money laundering threat of activity by unlicensed entities in the land-based sector.
The MGA said: “When assessing the STRs involving the land-based gaming sector, the majority of the reports received from this sector mainly relate to Maltese residents, though not necessarily Maltese nationals, and have an unknown predicate offence.
“Submissions are primarily raised following the identification of ML red flags or attributes with the main reason for reporting being the inability of the subject person to obtain sufficient corroborating evidence in relation to the players’ source of wealth or source of funds.
"At times, this is also coupled with the client’s lack of cooperation or outright refusal to provide information or supporting documentation.”
