Repubblika expresses its serious concern about the cumulative effect of recent legislative and policy changes affecting Malta’s framework for the investigation and prosecution of financial crime.
The introduction, in August 2025, of a legal mechanism allowing for the extinction of criminal liability for tax evasion offences through negotiated settlement represents a significant departure from the fundamental principles of criminal justice. Instead of courts determining responsibility through open and transparent proceedings in which evidence is examined, this framework allows cases involving serious allegations to be resolved administratively, through agreements between the authorities and the accused.
While the recovery of unpaid taxes is a legitimate objective, this cannot come at the expense of criminal accountability. The rule of law requires not only that financial harm be remedied, but also that wrongdoing be determined transparently and, where appropriate, sanctioned by the criminal courts.
This reform must be understood in its broader context. In recent years, Malta has seen:
- the weakening of temporary asset freezing measures, which are essential to safeguard suspected proceeds of crime;
- the removal of citizens’ access to request magisterial inquiries, limiting the ability to initiate criminal investigations in the public interest;
- and now, the introduction of mechanisms allowing criminal proceedings to be terminated without judicial determination.
Taken together, these developments represent a substantial weakening of Malta’s anti-corruption and anti-money laundering framework. They affect every stage of enforcement: how investigations are initiated, how evidence is gathered and preserved, and how cases are concluded.
This raises serious concerns about equality before the law.
In practice, these changes result in straightforward, easily provable offences continuing to be prosecuted through the courts, while more complex cases, particularly those involving financial crime such as bribery, are increasingly resolved through agreements reached behind closed doors. This creates a real risk that the most sophisticated offences are the least likely to be examined in open court.
Repubblika also expresses concern about the impact of these developments on institutions and on the professionals responsible for enforcing the law.
Investigators and prosecutors working on complex financial crime cases already operate under difficult conditions, with limited resources and considerable structural challenges. When cases built over several years are concluded through administrative agreements rather than judicial determination, this risks undermining institutional morale and weakening the State’s long-term capacity to address such crimes effectively.
Equally concerning is the manner in which these reforms have been adopted.
The legislation allowing for the extinction of criminal liability through settlement was introduced and approved by Parliament within a very short timeframe, without adequate scrutiny, consultation, or meaningful public debate. Reforms of this magnitude, which alter the balance between administrative enforcement and criminal justice, require careful analysis and broad participation. This did not take place.
Repubblika therefore calls for:
- A comprehensive review of recent changes affecting Malta’s anti-corruption and anti-money laundering framework, including the impact of settlement mechanisms on criminal accountability;
- The restoration of effective investigative tools, including measures to safeguard suspected proceeds of crime and mechanisms that allow for the initiation of investigations in the public interest;
- Clear safeguards to ensure that settlement mechanisms do not undermine criminal accountability, particularly in cases involving serious financial crime;
- Structured public consultation, involving civil society, legal practitioners, investigators, prosecutors, and academic experts, to ensure that future reforms strengthen, rather than weaken, the rule of law.
Malta’s anti-corruption framework must be evaluated not only by its ability to recover funds, but by its capacity to ensure accountability, uphold equality before the law, and maintain public confidence in the administration of justice.
Repubblika remains committed to contributing constructively to this process and to advocating for reforms that strengthen, rather than erode, the rule of law.