WMLRO.Com: Malta teaser as man claims money laundering laws breach constitution

The report in Di Ve, a Maltese newspaper, says that a Nigerian national attempted to leave Malta with USD144,000 and euro27,000 in cash. He has been charged with money laundering, but says that the law under which he has been charged are in breach of his rights under The European Convention on Human Rights.

The local reports are imprecise (indeed, a different newspaper, The Times of Malta, says that the defendant is a Hungarian national) and not technical and so a certain amount of assumption is needed to understand the arguments, until clarification can be obtained. As it presently appears, the Inspector presenting the case said that, in the absence of an explanation as to the source of funds, the state is entitled to present a case based on the presumption that if money is not demonstrably legally come by, it is presumed illegally come by.

But the defendant says that the prosecution of money laundering requires evidence that the money is connected to criminal activity - but Maltese law goes further, allowing conviction even if there is no direct link proved between the money and criminal activity.

The defence claims that the law reverses the burden of proof - placing it on the defendant not the prosecution and that this is contrary to EU law, and that its effect is excessive.

Also, the defence says, that a requirement to explain the origin of the funds in the defendant's possession is in breach of his right to silence - a right that has already been, in effect, removed on many jurisdictions including the UK.

The case has enormously wide consequences - already in several US jurisdictions, cases have been overturned on the basis that there was no proven link between funds and a specific criminal act. However, the EU directive does not require such a link and so the Maltese case seeks to, in effect, put a wedge between the EU Directives and the EU's own laws on human rights.

Maltese law is based on English and EU law in relation to money laundering.

Further reports will be made as additional facts become available.

In the meantime, there are some interesting ironies: the defendant is represented by Dr Joe Brincat, fomer Minister or Justice and a staunch opponent of Malta's entry into the EU.