The 23 recommendations for Malta by the Group of States Against Corruption – better known as GRECO – must be seen as “a programme” of improvement in which “there is no finish line,” according to Bank of Valletta CEO Kenneth Farrugia.

After the presentation of the bank’s “excellent” results for 2023, where it registered a profit before tax of a quarter billion euro, asked Mr Farrugia how worried he is about the negative assessment delivered by the international body of Malta’s progress in beefing up its anti-corruption mechanisms.

“When it comes to control frameworks, these are not projects, they are programmes,” he said. “This means that they require continuous review and improvement.”

GRECO’s report was quite damning of the Maltese Government’s efforts – or lack thereof – to implement the recommendations first made back in 2019, which include strengthening of criminal investigations and measures to improve the transparency of lobbying and the declaration of assets by politicians.

The last few years have proven turbulent for Malta’s financial sector, with BOV undertaking broad reforms to overturn a negative assessment – also delivered in 2019 – by the European Central Bank and struggling to establish a new correspondent banking relationship for the US dollar after previous relationships were terminated.

In fact, the CEO pointed to Citi Group’s onboarding of BOV as its new US dollar correspondent bank as a highlight of 2023.

Nonetheless, he declined’s invitation to send a message to Government about the influence its foot-dragging may have on Malta’s international standing as a financial jurisdiction.

“We review comments made about control frameworks in Malta to see whether they are truly representing the state of play within the country,” he said, comparing the battle against financial crime to that of cybersecurity: “It’s a continuous programme of initiatives that you need to put in place.”

Mr Farrugia added that criminals involved in fraud and illicit financial dealings are sophisticated, often coming with legitimate businesses and forcing the bank to “dig deep” to find evidence of malfeasance.

“Continuous efforts are needed because risks change and challenges develop,” he said.


Malta should explore state aid to ease freight costs, C-level logistics experts suggest

25 April 2024
by MaltaCEOs

Retail Marketing Ltd CEO Jonathan Shaw believes Malta should join forces with other island nations that face similar logistical challenges.

‘The electrification wave of the automotive market is in full swing’ – Gasan Group CEO Mark Gasan

25 April 2024
by MaltaCEOs

He spoke at the launch of electric vehicle ultra-fast charging stations by the Group’s engineering arm, Mekanika.

ClearFlowPlus green bond issue ‘marks the beginning of an exciting phase,’ says Chairman

25 April 2024
by Fabrizio Tabone

While the Water Services Corporation subsidiary reported a decrease in pre-tax profit, Vincent Micallef still says 2023 was a ‘milestone’ ...

‘After 19 years, I went back to where it all began’: MaritimeMT CEO Pauline Micallef visits former school

25 April 2024
by Anthea Cachia

During her visit, she shared the various opportunities for women within the maritime industry.

Close Bitnami banner