FIAU Annual Report 2025

THE BOARD OF GOVERNORS

The Board of Governors of the Financial Intelligence Analysis Unit (FIAU) is established under the Prevention of Money Laundering Act (PMLA) and appointed by the Minister responsible for Finance. It comprises seven members: the Commissioner of Police, the Commissioner for Tax and Customs, one member from the nominees put forward by the Governor of the Central Bank of Malta (CBM), two members from the nominees put forward by the Chairman of the Malta Financial Services Authority (MFSA), and a further two from the nominees put forward by the Chairman of the Malta Gaming Authority (MGA). The Prime Minister appoints the Board's Chairman and Deputy Chairman from among those selected by the Minister.

Board members serve a renewable five-year term and are legally required to carry out their responsibilities independently, without external influence or control. Operating as a non-executive body, the Board sets the policy framework for the FIAU and supervises its implementation by the Director and staff. However, the Board is not involved in operational tasks, such as analysing or disseminating information, nor does it have direct access to case-specific details or FIAU databases. The Director and FIAU officials handle all operational matters.

In 2025, the Board convened 12 times to address various aspects of the FIAU's operations, including its development, structure, and strategy, with a focus on expanding human resources and managing a growing workload. Regular updates on the FIAU's Strategy for 2023-2026 ensured alignment with its objectives.

The Board continues to perform its duties by shaping and monitoring policy, offering strategic direction, while safeguarding the FIAU's independence and ensuring its effective operation within its legal mandate.

Kenneth Farrugia, CEO of the MFSA, holds a Bachelor of Accountancy (Hons), an MA in Business Ethics, and is a Certified Public Accountant and a fellow member of the Malta Institute of Accountants (MIA). Throughout his career, Mr Farrugia held audit positions both within private audit firms and the public sector. Prior to joining the MFSA, Mr Farrugia was the Director of the FIAU for six years until April 2023.

Mr Kenneth Farrugia
Chairman

Joseph Caruana was appointed Commissioner for Tax and Customs on 1st February 2022 where he is implementing the digital transformation of the Malta Tax and Customs Administration. Mr Caruana started his career in 1977 as a clerk. He progressed through the ranks, and in 2008 headed the European Union Paying Agency. From 2011, he also acted as Director General for Fisheries. From 2013 to 2022 he was appointed Permanent Secretary and served within the Ministry for Education and Employment, the Ministry for Finance and the Ministry for Transport, Infrastructure and Capital Projects.

Mr Joseph Caruana Deputy
Chairman

Paul Caruana joined the MFSA in March 2020 in the position of Head of Due Diligence. Mr Caruana served as a police officer for over twenty-five years. During his policing career, he was responsible for setting up the police ICT Department, and as project manager he oversaw the implementation of major transnational and national ICT-related projects. During the same period, he was also responsible for setting up a specialist cybercrime section for the Malta Police Force (MPF).

Mr Paul Caruana
Board Member

Claudio Ghirlando is the Money Laundering Reporting Officer (MLRO) and Head of Financial Crime Compliance at the CBM. Prior to working at the CBM, Claudio was the MLRO for one of Malta’s systemically important institutions. He has held other senior positions in the domestic banking industry, with a long tenure as an Associate Director covering Operational Risk, Regulatory and Financial Crime Compliance.

Mr Claudio Ghirlando
Board Member

Charles Mizzi is the Chief Executive Officer at the MGA. He joined the MGA in 2024 following a 5-year tenure at the helm of the Residency Malta Agency. There, he led the organisation towards its goal of ensuring that Malta is one of the most reputable and desirable residencies by investment jurisdictions. He has extensive experience in operations management and a background in marketing, communications and events at a national level.

Mr Charles Mizzi
Board Member

James Baldacchino is General Counsel at the Malta Gaming Authority. He graduated from the University of Malta in 2017 with a Master of Advocacy and was admitted to the Bar in 2018, following which he joined the MGA as a Junior Legal Counsel. In his current role, he is responsible for overseeing the legal affairs of the Maltese regulator and managing its Enforcement team. Following a recent restructuring exercise within the MGA, the former International Affairs and Data Privacy team has been integrated into the Legal Department and now falls under his remit. He chairs the Compliance and Enforcement Committee and serves as Vice-Chair of the Supervisory Committee.

Dr James Baldacchino
Board Member

Angelo Gafà has been occupying the position of Commissioner of Police since January 2020. He joined the MPF in 2003 and was appointed Inspector in 2004. In 2018 he was promoted as Superintendent. During this period Mr Gafà was assigned duties within the Economic Crimes Squad and the Malta Security Service respectively. Between December 2016 and June 2020 Mr Gafà served as the Malta Police’s first Chief Executive Officer.

Mr Angelo Gafà
Board Member

Lizann Zarb serves as the Board Secretary and has been holding this position since joining the entity in 2020. She graduated from the University of Malta with a master’s degree in Entrepreneurship complemented by a Level 5 qualification in Administration and Management. Her role involves strategic board coordination, comprehensive executive support, and the oversight of essential business operations. Ms Zarb also holds the position of Executive Manager and Personal Assistant to the Director of the FIAU.

Ms Lizann Zarb
Secretary to the Board

OUR VISION

A reputable financial system safeguarded from criminal abuse that serves the legitimate expectations of society and the business community.

In 2023, about $3.1 trillion in illicit funds flowed through the global financial system.
-Nasdaq, January 2024

CHAIRMAN’ S STATEMENT

Guiding Long Term Resilience and Financial Integrity

This year has brought notable achievements. The FIAU continued to strengthen supervisory frameworks, enhance intelligence capabilities, and deepen engagement with subject persons (SPs). Reporting quality has improved, supervisory efforts are increasingly risk-focused, and tools such as the Centralised Bank Account Register (CBAR) have matured into indispensable assets. These developments reflect a system that is evolving in the right direction.

Yet, progress has not come without challenges. The global Anti Money Laundering/Counter Funding of Terrorism (AML/CFT) landscape is constantly changing; wars, political instability, and a multitude of other factors relentlessly alter the shape of our world. Criminal networks are leveraging technology more than ever before, to obscure illicit flows. The wrongful use of technology, artificial intelligence and cyber-enabled crime has continued to introduce new layers of complexities, putting pressure on resources and demanding constant adaptation.

The fight against money laundering and funding of terrorism is not abstract. It is about preventing harm to individuals, businesses, and communities.

Another significant challenge has been preparing for the changes introduced by the European Union (EU)’s AML/CFT package. The establishment of the European Anti Money Laundering Authority (AMLA) and the Single Rulebook mark the most substantial reform in decades. While these developments promise greater consistency and clarity across Member States, they also require adjustments in governance, systems, and processes. The FIAU has actively participated in EU-Level drafting and working groups to ensure Malta’s voice is heard and to position our jurisdiction for a smooth transition. This proactive engagement is essential, as the coming years will bring new supervisory dynamics and expectations.

Collaboration has been central to our progress. The National Risk Assessment (NRA) process remains a cornerstone of our collective understanding of threats and vulnerabilities. I am encouraged by the commitment shown by all entities involved, public authorities, regulators, law enforcement, and private-sector stakeholders. This spirit of partnership is not optional; it is fundamental. Financial crime does not respect borders or sectors, and neither can our response. Public–private partnerships, structured information sharing, and joint actions are critical to improving detection and closing gaps. International cooperation is equally vital, as cross-border cases increasingly dominate the landscape.

Looking ahead, 2026 will be a year of preparation and adaptation. The implementation of the EU Single Rulebook and AMLA’s operational requirements will necessitate significant effort across sectors. These changes present opportunities for greater consistency and interoperability, but they also demand investment in compliance frameworks, technology, and expertise. The FIAU will continue to provide guidance and support, but success will depend on proactive engagement from all stakeholders.

We must also continue preparing for Malta’s next MONEYVAL evaluation which is tentatively set for 2028. This will be a critical milestone, assessing not only technical compliance but the effectiveness of our measures in practice. Further changes in the Financial Action Task Force (FATF)’s mutual evaluation methodology and a sharper focus on jurisdictional risks mean that we must be well prepared. Strong oversight, robust risk assessments, and evidence of practical outcomes will be key. This is an opportunity to demonstrate progress and reinforce Malta’s reputation as a well-regulated financial centre.

Technology remains both an enabler and a challenge. Artificial intelligence and advanced analytics offer powerful tools to improve detection and reduce inefficiencies. However, they also raise questions about data security, privacy, and ethical use. As a jurisdiction, we must strike the right balance and leverage innovation while safeguarding integrity. This will require clear policies, strong governance, and ongoing dialogue between regulators and industry. Innovation must serve the public interest, not compromise it.

Finally, I extend my appreciation to all SPs and stakeholders who share this responsibility. Your efforts, whether through timely reporting, robust controls, or active participation in consultations, are vital to protecting Malta’s economy and society. Together, we form a defence system that safeguards financial integrity and upholds the values that define our jurisdiction: integrity, transparency, and trust.

None of this progress would be possible without the dedication of people. I wish to express my sincere gratitude to the Director, Mr Alfred Zammit, whose leadership has been instrumental in driving operational excellence and stakeholder engagement. I want to thank the Board for its guidance and oversight, and the entire FIAU team for their professionalism and commitment. Their work underpins Malta’s reputation as a well regulated financial centre. It is a source of pride that our colleagues have not only met expectations but often exceeded them, demonstrating resilience and purpose in a demanding environment.

As we look ahead, we must stay focused and work together. The challenges we face are real, but they can be managed. Whether it’s through cooperation between the public and private sectors, or with our partners at home and abroad, we can keep building Malta’s defences against financial crime and protect the values that guide our financial system. Every step we take, every risk we address, reflects our commitment to safeguarding people and maintaining trust in Malta’s economy.

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