Following an analysis of the current trend in infringements of the Cash Control Regulations (S.L. 233.07) and the inherent risks, the Customs Department, this week, has initiated the process intended to continue beefing up its Anti-Money Laundering Team by two additional Officials, that is, from 9 to 11 officials. The selection process will be followed by a programme of intense training.
This Section was introduced, within the Department’s structure, in November 2018, commencing with a team of four Officials. It was, subsequently, enhanced by five additional Officials in 2019.
The AMLT is now working in close cooperation with the newly established Customs Canine Unit, the Customs Enforcement Unit and the Customs Intelligence Services. The section has also improved cooperation with other counterparts, such as, the Police anti-money laundering and counter terrorism financing units and the FIAU. Noteworthy to be highlighted is the Department’s thrust in vigorously reviewing its legislative framework, providing more efficacious powers to Customs Officials.
To mention just three amendments: One is that, during investigations regarding contraband, tax evasion, money laundering, terrorism financing and others, Customs now has the power to demand and collect information from any entity, private or public, regarding transactions that take place, including transactions between third parties; Another legislative amendment obliges economic operators to give to Customs access to their computer systems and all their records, when requested, so that a systems-based audit may be carried out, as and when required.
Systems-based audit means an audit procedure, including auditing of electronic systems, designed to obtain audit evidence as to whether key controls are operating continuously, consistently and effectively as planned in preventing, or detecting and correcting, material mis-statements or instances of non-compliance throughout the period being audited; andAnother important legislative amendment is that, now, if there are suspicions of criminal activity, any amount of cash, declared or undeclared, may be detained at the border.
The Customs Department has employed also a system, through which information is electronically shared, in real time, with the FIAU and the Police, to provide key figures and trends pertaining to high risk individuals, countries and other monitored jurisdictions. Against this background, the Customs Department has signed several Memoranda of Understanding, among others, with several government agencies, that include the Police Force, the FIAU, Malta’s Security Service, the Office of the Attorney General, the Asset Recovery Bureau, the Sanctions Monitoring Board, the Central Bank of Malta, the Commerce Department, Transport Malta and Valletta Cruise Port.Notably to say that, in this spirit of collaboration between law enforcement agencies, the Customs Department’s canine teams, specialized in detecting concealment of cash, are at times seconded to the Police when searches for cash are carried out at private residences and other remote places.
With regards to money laundering, Customs is mainly involved on four fronts:in gathering information, monitoring and investigating cross-border movement of cash; in detecting offences related to contraband and other related illegal activity; in trade-based money laundering cases, such as, over-invoicing typologies; and in monitoring and investigating, together with the Sanctions Monitoring Board, cases involving strategic trade and sanctions monitoring.
ResultsFrom 2016 to 2020, Malta’s customs department has:registered, year on year, record breaking drug seizures (tons of cocaine and cannabis resin), with a total street value of more than €179 million; intercepted €2.4 million in undeclared cash; seized a number of boats and outboard motors, believed to be intended for human trafficking; detained 176 million ‘Tramadol Pills’, hydrochloride tablets used by Jihadists and by militias in war zones. Estimated value €1.2 billion.seized over 900 dummy rifles used in training exercises by militias; seized two conatiners full of Libyan Dinars, worth nearly €1 billion; intercepted millions of counterfeit good, with a total value of more than €111 million; and seized millions of contraband cigarettes, with a total value of €43.5 million.
