What is Money Laundering?

What is Money Laundering?

When a criminal activity such as illegal arms sales, smuggling or the activities of organised crime including, for example, drug trafficking and prostitution rings, generates substantial profits, the individual or group involved must find a way to control the funds without attracting attention to the underlying criminal activity or the persons involved.

Criminals do this by disguising the sources of their profits, changing the form, or moving the funds to a place where they are less likely to attract attention. This could be done by, for example, breaking up large amounts of cash into less conspicuous smaller sums that are then deposited directly into bank accounts, by purchasing a series of investment instruments or else by investing the funds into real estate, luxury assets or even legitimate business ventures.

How does Money Laundering affect business?

The integrity of the banking and financial services marketplace depends heavily on the perception that it functions within a framework of high legal, professional and ethical standards. A reputation for integrity is one of the most valuable assets of a financial services jurisdiction such as Malta.

As with the damaged integrity of an individual financial institution, there is a damping effect on foreign direct investment when a country’s commercial and financial institutions are perceived to be subject to the control and influence of organised crime.

Our commitment: Stop to Money Laundering

As money laundering is a criminal offence and a serious threat to the good functioning of a financial system, we strongly affirm that we do not condone money laundering activities and certainly do not wish to be associated in any manner whatsoever with individuals/groups carrying out money laundering activities.

As we value our high standards of integrity, professionalism and ethics, we strongly affirm that we shall immediately and without any exceptions whatsoever inform the Police of any reasonable suspicion on our part of money laundering activities taking place.