Malta, Europe’s foremost online gambling hub, has been removed from the Financial Action Task Force (FATF) graylist. It’s news that will have politicians in the tiny Mediterranean island-state and its online gambling industry exhaling.

The industry is drawn to Malta by its tax breaks, favorable regulatory system, and EU membership. The latter has guaranteed fluid financial services with the rest of Europe.

But in June 2021, Malta had the dubious honor of becoming the first EU country to be graylisted by FATF, finding itself in the same boat as Yemen, Syria, and Burkina Faso.

The demotion of Malta’s financial status constrained the country’s banking sector, making it less agile and more expensive to engage with.

Companies based in a graylisted jurisdiction are assumed to pose a higher risk and are therefore subject to more red tape. That could make everything from the movement of player funds to the distribution dividends trickier and more expensive.

What is FATF?

FATF is an intergovernmental organization founded by the G7 to combat money laundering and terrorism financing.

The Times of Malta reports that the country was given the all-clear after a vote by FATF officials on Wednesday. The formal announcement of the decision is scheduled for Friday afternoon.

FAFT is understood to be satisfied that Malta has successfully implemented a series of reforms that it recommended last year. These include changes to the way it fights tax evasion, collects information on ultimate beneficial ownership, and the way it shares information with local and international authorities.

It was placed on the graylist after longstanding international criticism of government policies, such as the selling of Maltese citizenship and its failure to prosecute leading government officials accused of corruption.