Financial Crime World

Malta Adopts Stringent Anti-Money Laundering Measures

The Maltese government has implemented a comprehensive anti-money laundering (AML) regime aimed at combating the illegal flow of funds through its financial system.

Strengthened AML Regime

Under the new laws, individuals and businesses are required to conduct thorough due diligence on clients and transactions, ensuring that all dealings are transparent and legitimate. The authorities have also empowered regulatory bodies such as the Malta Financial Services Authority and the Malta Gaming Authority to revoke licenses and conduct monitoring to prevent illicit activities.

Who is Considered a “Subject Person”?

The law defines “subject persons” as anyone involved in financial business or activity, including:

  • Notaries
  • Lawyers
  • Real estate agents
  • Accountants
  • Tax advisors

These individuals must carry out know-your-customer (KYC) verification on clients, verifying their identity and the source of funds.

Due Diligence: A Critical Aspect of AML Compliance

In addition to KYC, due diligence is a critical aspect of AML compliance. This process involves:

  • Verifying information provided by clients
  • Conducting background checks to ensure that transactions are legitimate
  • Keeping accurate records of all transactions and updating them regularly

Risk Management: Identifying and Mitigating Risks

Risk management is another crucial component of AML compliance. Subject persons must identify and assess potential risks associated with transactions, such as:

  • Complex or high-value deals
  • And take measures to mitigate these risks.

Penalties for Non-Compliance

The Maltese authorities have introduced severe penalties for those found guilty of money laundering, including:

  • Fines up to EUR 2.5 million
  • Prison sentences of up to 18 years
  • Confiscation of property in cases where funds are suspected of being derived from illegal activities.

BDO Malta: Your Partner in AML Compliance

BDO Malta, a leading accounting and advisory firm, offers AML compliance services to help clients navigate the complex regulatory landscape. Our services include:

  • Developing AML frameworks
  • Conducting compliance reviews
  • Providing staff training
  • Assisting organizations of all sizes in ensuring compliance with national and international AML requirements.

For more information on how BDO Malta can help your organization comply with AML regulations, please contact us at [insert contact information].