MALTA: IGAMING HUB JOINS MYANMAR, PANAMA & SYRIA ON FATF GREY LIST

Malta, the international iGaming hub, has officially been grey listed by the Financial Action Task Force (FATF), labelling it as an untrustworthy jurisdiction. 

The country is now in the same category as countries like Burkina Faso, Cambodia, Myanmar, Nicaragua, Panama, Syria, Uganda, Yemen, and Zimbabwe, and is the first European Union member nation ever to make the list. 

Despite making significant progress over the past couple of years, and passing a recent Moneyval test, the country failed to convince the FATF that it could be trusted when it comes to tackling corruption and financial crime. 

Malta’s Prime Minister, Robert Abela, has said the FATF’s decision was “not deserved” and “unjust”, and opposition leader Bernard Grech deemed it a “national punishment.” However, Malta’s Finance Minister, Clyde Caruana, insisted the government would not be modifying its GDP growth targets. 

Although no one knows exactly how the FATF’s move will affect the Maltese economy, those in the critical iGaming industry, who have been finding it difficult to access even basic banking services for years now, will be bracing themselves for potentially severe issues. 

For, as many Malta-based businesses are only too aware, being associated with the country already raised eyebrows with many international banks and financial service providers, so this official greylisting could convince them to withdraw services completely. 

Clearly, Malta now faces a major reality check, with the FATF greylisting combining with several other issues. 

The value of its iGaming license, issued by the Malta Gaming Authority, has plummeted due to regulatory reforms in major gaming markets – most recently Germany. Meanwhile, its plans to become a blockchain and crypto hub (Blockchain Island) seem to have evaporated, as regulatory delays and confusion have caused companies to quietly drift away.

Taking a step back and looking at the bigger picture, the attractiveness of the island as a place to live and work has fallen through the floor thanks to rocketing living costs and environmental degradation, while its tourism industry, like those of other countries, has been devastated by the still ongoing COVID-19 crisis.

To those on the ground, it can seem like the majority of locals are blissfully unaware of the swelling problems threatening the country. New office towers, apartment buildings, and hotels are still being built and planned, politicians continue to talk of continuous economic growth, and the sun is shining. 

But, behind the scenes, many of those who helped turn Malta into a gaming hub will be making alternative plans for the future.