Comprehensive Guide to Anti-Money Laundering (AML) Compliance in Malta
What is Anti-Money Laundering (AML)?
Anti-money laundering (AML) refers to the processes and procedures designed to prevent, detect, and report suspicious financial transactions. AML compliance is essential for businesses operating in Malta, as it helps to mitigate the risk of money laundering and terrorist financing.
Who are ‘Subject Persons’ in Malta?
Under Maltese law, subject persons are defined as any legal or natural person carrying out relevant financial business or activity. This includes:
- Notaries and lawyers when they act on behalf of clients in financial transactions
- Real estate agents
- Managing money and securities
- Tax advisors
- Auditors
- Accountants
- Art traders
- Those involved in maintaining internal reporting procedures
Know Your Customer (KYC) and Due Diligence
Every subject person should have due diligence carried out on them, which includes:
- Identifying the client based on documents
- Verifying their legal status
- Identifying beneficial owners
- Ensuring ongoing monitoring
- Keeping all documents up to date for the duration of the relationship and after
Risk Management
Subject persons are required to update and enforce risk management processes and procedures, evaluating transactions that can be considered:
- Complex
- High-value
- Unusual
- Suspicious
Record-Keeping and Reporting Procedures
Subject persons must keep relevant documentation and information to aid any potential investigations by the Financial Intelligence Analysis Unit (FIAU) or police.
Benefits of Using BDO Malta’s AML Compliance Services
BDO Malta’s AML compliance team is on hand to assist clients from all industries with their AML/CFT obligations. Some potential benefits of using their services include:
- Developing a robust culture of compliance within an organization
- Ensuring compliance with national and international AML legal requirements
- Providing assistance with creating AML procedures, staff training, and compliance support
Conclusion
This guide provides a comprehensive overview of AML compliance in Malta, highlighting the importance of due diligence, risk management, record-keeping, and reporting procedures. It also emphasizes the value of using BDO Malta’s AML compliance services to ensure that organizations are compliant with all applicable laws and regulations.