President’s Address
PRESIDENT’S ADDRESS FABIO AXISA AT THE TIME OF DRAFTING THIS ADDRESS, AS A COUNTRY WE SEEM TO BE HEADING TOWARDS ANOTHER UNEXPECTED PAGE IN THIS CORONAVIRUS SAGA. THIS IS A DEFINING TIME FOR EVERYONE AS WE NAVIGATE THROUGH THIS AND OTHER CHALLENGES - FOR US AS THE INSTITUTE, AS A PROFESSION, AS AN ECONOMY, AND AS A NATION. OUR BEHAVIOUR AND PERFORMANCE WILL BE JUDGED BY REFERENCE TO WHAT WE WILL MANAGE TO ACHIEVE THROUGHOUT THIS INTENSE PERIOD OF UNCERTAINTY. THE PANDEMIC AND THE MONEYVAL CHALLENGES HAVE BEEN PERSISTENT CAUSES FOR CONCERN FOR THE COUNTRY AND, EVEN MORE SO, FOR US WITHIN THE ACCOUNTANCY PROFESSION. FURTHERMORE, IMPORTANT DEVELOPMENTS IN THE REGULATORY FRAMEWORK, MARKET CONDITIONS AND EXPECTATIONS PRESENT NEW CHALLENGES THAT REQUIRE MORE RESILIENT AND CLINICAL PERFORMANCE BY PROFESSIONAL ACCOUNTANTS. In the last few months, the Institute continued to engage in intensive interaction with members, stakeholders, other professions, public bodies and authorities to identify the main difficulties our members are encountering and to contribute with effective solutions to overcome these challenges. We are doing our very best to stay close to our members and to be decisive in our members’ lives. I am sure you want more and I will not rest until all our members feel included and proud to be part of this Institute. Our strong voice on Moneyval One of the key issues that worries our members is the country’s fate in respect of the Moneyval evaluation. In July as your President I represented the Institute in a high-level delegation which met Prime Minister Robert Abela to discuss the major issues surrounding the Moneyval evaluation and discuss the impact on the Financial Services Sector in Malta. This specially-designated forum also includes the Financial Services Business Section of the Malta Chamber, the Malta
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Bankers’ Association (MBA), the Chamber of Advocates, the Institute of Financial Services Practitioners (IFSP) and the Malta Institute of Taxation (MIT). Together, we presented a series of proposals to Government suggesting concrete ways on how to address the Moneyval matter and how to navigate through the evaluation in the coming months to safeguard the country and our market. Your Institute is considered relevant and influential - I was pleased that our feedback shaped the proposals and was attributed a lot of weight. The importance of having 3,700 accountants’ voices extremely concerned about this situation is evident. The ‘Recommendations for the Moneyval Assessment’ document insists on continued enhancement of Malta’s regulatory and legal infrastructure in respect of AntiMoney Laundering/Combating the Financing of Terrorism (AML/ CFT) as well as Rule of Law, together with more concrete steps in the areas of investigations, prosecutions and confiscations. Our message to the Prime Minister was very clear and articulated. A
fair degree of optimism in respect of going through the evaluation successfully was shared with us, which gives us a degree of confidence. However, as a country we have to raise the bar and ensure the appropriate actions and decisions are taken. Together with the other partners, the MIA is also pushing for more transparency and effective communication to all stakeholders in respect of developments in this area, focusing specifically on Government’s actions on both technical and political fronts to ensure the damage to the country’s reputation is repaired. The recommendations go further, and we are suggesting the appointment of a technical, national frontperson on Moneyval related matters, who communicates the stance and progress on all Moneyval initiatives. Clearly, the strategy must be that we are on a long-term voyage – beyond the coming few months – to cleanse our name and re-establish the aura around Malta as a financial services jurisdiction and a reputable country. This will take time and will only work if all
