MALTA’S FATF GREY LISTING
with a playing environment which is safe, fair and free from crime. Malta offers a strong regulatory framework and the MGA never wants businesses to be in a position where being regulated in Malta makes it difficult for them to carry on. If that does happen, then players are pushed towards a more risky environment which would be completely at odds with what the MGA has set out to achieve. The MGA’s aim throughout all of this was to strike a balance: getting Malta off the grey list whilst supporting those regulated businesses and easing any problems they were facing. Reaching a balance was difficult as the MGA wanted to ensure that markets remain open and consumers have a wide choice, while at the same time regulating those freedoms in a way that is safe and fair. To assist with the practical issues faced by regulated businesses in terms of banking and monetary institutions, the MGA had a large part to play. The MGA set up a division dedicated to outreach and they were speaking to the international partners of local licensees as part of a process which started before the grey-listing. The MGA shared best practices and explained Malta’s regulatory processes, the monitoring program over licensees, the compliance and licensing process, due diligence and the MGA’s AML overview. These efforts meant the MGA was able to help ease the effects of grey-listing on local and international banks and international partners. What’s next? Malta was officially removed from the grey-list in June 2022 after implementing a long list of changes to the way it combats tax evasion, collects information on ultimate beneficial ownership, and the way it shares information with local and international authorities. These issues were at the heart of a FATF action plan which Malta had to implement before being given a clean bill of health by the global anti- money laundering body. Moving forward, Malta is tasked with continually proving that it is committed
to keeping up the current pace of reforms. We do not consider that there has been any significant long-term damage suffered by gaming companies with a connection to Malta as a jurisdiction during the grey-listing period. We believe that this is mainly due to the fact that it is clear that the iGaming Industry was not specifically targeted by the grey-listing and did not cause the grey-listing. This is due to the high standards of safeguards in place within the industry over the years in conjunction with the FIAU and MGA’s rules and guidance - a clear testament to the continued commitment which the iGaming Industry in Malta has to making gambling safer and ensuring a high standard of compliance. Since Malta was been removed from the grey list in June 2022, we have seen a dramatic improvement with regards to iGaming company’s relationships with banks and attracting new business. Whilst banks continue to ask for appropriate due diligence documentation, it is apparent that the pressure being applied has eased with less burdensome compliance processes and improved lines of communication. Furthermore, we have noticed that the grey-listing topic is now considered to be ‘old news’ when it comes to conversations to attract new business. It is no longer the prominent topic that it was during these conversations and seems to be viewed by many as a challenging time which the iGaming Industry in Malta endured and overcame. We see that Malta continues to be a jurisdiction of choice for the iGaming Industry and rightly so. Malta has positioned itself as one of the few platinum-standard licence regimes. Having been in the iGaming industry for over 20 years, Malta has seen the market dip, revitalise itself and evolve. Consequently, as a regulator, the MGA is vested with a great depth of knowledge and knowhow when it comes to dealing with operators and the business reality of remote gambling. This is reflected not only in its understanding of the ever-evolving iGaming industry but also within Malta’s gaming legislative framework.
JAN KILLIPS WRIGHT Regulated Industries & Compliance Advisor
DR FRANCESCA ANASTASI Legal, Risk & Compliance Advisor
DR BJORN CAMILLERI Regulatory & Business Advisor
DR KYLE SCERRI Manager: Gaming and Fintech CSB Group For information contact +356 2557 2557 kyle.scerri@csbgroup.com
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IMGL MAGAZINE | JANUARY 2023
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