Malta Enforces Stricter Anti-Money Laundering Regulations to Combat Terrorism and Money Laundering
New Regulations Aim to Prevent and Detect Money Laundering and Terrorist Financing Activities
In a bid to combat money laundering and funding of terrorism, Malta has enforced stricter anti-money laundering (AML) regulations. The Prevention of Money Laundering and Funding of Terrorism Regulations have been published in the Official Gazette, replacing previous legislation.
Key Requirements for Financial Institutions and Designated Non-Financial Businesses and Professions
- Implement effective AML/CFT measures
- Customer due diligence
- Ongoing monitoring of transactions
- Reporting suspicious transactions
- Enhanced due diligence on customers who conduct high-risk transactions or have a low level of transparency
- Establish procedures for identifying and verifying the identity of customers and beneficial owners
Responsibilities of Malta’s Financial Intelligence Analysis Unit (FIAU)
- Monitor compliance with regulations
- Ensure that financial institutions are reporting suspicious transactions
Effective Date and International Standards Alignment
The new regulations came into force on July 26, 2021, and aim to strengthen Malta’s AML/CFT framework, in line with international standards. The government has emphasized the importance of combating money laundering and terrorist financing, which can have serious consequences for the country’s economy and national security.
Accessing the Regulations
The full text of the Prevention of Money Laundering and Funding of Terrorism Regulations is available on the website of the European Legal Institute (ELI) at eli/sll/373.1. The regulations are available in both English and Maltese formats, including PDF.
By enforcing stricter AML regulations, Malta aims to prevent and detect money laundering and terrorist financing activities, thereby ensuring a safer and more secure financial environment for its citizens and businesses.