Financial Crime World

Malta’s AML Policies and Procedures: A Comprehensive Guide for Financial Service Providers

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The Financial Intelligence Analysis Unit (FIAU) has released a revised version of its Implementing Procedures, providing financial service providers and subject persons with a comprehensive guide on how to comply with anti-money laundering and combating the financing of terrorism (AML/CFT) obligations.

Key Updates

  • Reflects legislative amendments made to the Prevention of Money Laundering Act and the Prevention of Money Laundering and Funding of Terrorism Regulations between December 2017 and January 2018.
  • Key updates include changes to:
    • Risk-based approach
    • Customer due diligence
    • Non-financial businesses and professions
    • Virtual financial assets

Risk-Based Approach

  • The revised procedures emphasize the importance of adopting a risk-based approach to AML/CFT, where the level of control is proportionate to the level of risk identified.

Customer Due Diligence

  • The procedures highlight the need for customer due diligence, including:
    • Verification of the customer’s identity
    • Source of their funds

Non-Financial Businesses and Professions

  • The revised procedures clarify the application of AML/CFT obligations to non-financial businesses and professions, such as:
    • Lawyers
    • Accountants
    • Real estate agents

Virtual Financial Assets

  • The inclusion of virtual financial assets within the scope of the Implementing Procedures marks a significant development in Malta’s efforts to combat money laundering and terrorist financing.

Deloitte’s Expertise

  • Deloitte offers comprehensive and tailored advisory services covering all aspects of AML compliance, including:
    • Training
    • Regulatory framework and gap analysis
    • AML/CFT oversight model and audit
    • Business risk assessment
    • Customer due diligence support

Quote from Ian Coppini

  • “Our team is well-equipped to help financial institutions navigate the complex regulatory landscape and ensure they are in compliance with the revised Implementing Procedures.”

Conclusion

The revised Implementing Procedures provide a valuable resource for financial service providers and subject persons looking to comply with Malta’s AML/CFT regulations. With Deloitte’s expertise and guidance, businesses can confidently navigate this complex area and maintain their reputation for integrity and transparency.