A previous declined proposal has come back in to light and this time it is here it stay.
The proposal to have limit on cash transactions was proposed by Finance Minister Edward Scicluna in 2015. However at that time it was shut down due to fear of negative economic and social impact.
4 years later and in the midst of money laundering cases, Malta government has decided to finally implement a limit on cash transactions. This is also comes from international pressure related to money laundering cases.
Majority of EU countries have similar bans placed to prevent being exposed to the risk of major money laundering activity. The ban will be implemented by the Finance Ministry, as empowered under the prevention of money-laundering act.
As per Prof. Scicluna, the ban will “apply to property, car and boat sales, as well as the sale of precious stones and metals, including jewellery and watches. The buying and selling of antiques and works of art, including by traders, auctioneers and galleries, will be covered by the new regulations. breach of this ban would constitute a criminal offence.”
“The Financial Intelligence Analysis Unit (FIAU), Malta’s anti-money laundering body, or another authority would be responsible for supervising compliance.” said Prof. Scicluna, “the competent authority would receive reports to analyse and pass on to the police for further investigations.”
It is never too late to start, and this case it stays true. However, It is a costly delay in implementation of such policy as there has been monetary and reputational blow to Malta.