In November 2021 Malta completed a risk assessment on tax evasion both in terms of laundering the proceeds of domestic tax evasion and in terms of potential tax evasion abroad with the laundering the foreign proceeds of crime in Malta. This is the first detailed risk assessment examining the risks of money laundering from tax evasion. The purpose of this risk assessment is two-fold: (i) to establish a common understanding of the existing risks regarding ML in Malta of the proceeds of tax crime (domestic and foreign), asses the quality of existing mitigation measures, and foster effective risk based effort in prevention detection investigation and prosecution of these crimes by all authorities; and (ii) for the benefit of the private sector, identifying red flags and indicators to assist them in their obligations with regard to preventative measures and especially improving the quality of tax related suspicious transaction reports. The document in the following link presents the key conclusions on the inherent risk, vulnerabilities and residual risk, and the recommended actions to improve the control framework to mitigate the identified risks.
Key Results of the Risk assessment of Tax offences and related Money Laundering