Financial Crime World

Here is the rewritten article in Markdown format:

MALTA FINANCIAL SECTOR COMPLIANCE: AVOIDING SANCTIONS AND RESTRICTIVE MEASURES

International sanctions imposed by the United Nations Security Council, European Union, and individual countries have become a crucial aspect of global financial governance. These measures aim to address various political, security, and economic concerns, including terrorism, human rights violations, and weapons proliferation.

Sanctions in Malta

In Malta, the National Interest (Enabling Powers) Act serves as the primary legislative framework for implementing international sanctions. The act provides that UN Security Council resolutions imposing sanctions are directly applicable and enforceable in Malta, while EU Council and Commission regulations concerning restrictive measures are also directly applicable.

The Role of the Sanctions Monitoring Board

The Sanctions Monitoring Board plays a vital role in monitoring the implementation and operation of sanctions legislation in Malta. Established to ensure compliance with international sanctions, the board is responsible for providing information on new designations of individuals and entities subject to sanctions.

Compliance Requirements for Financial Institutions

To avoid inadvertently supporting activities, individuals, or entities subject to sanctions, financial institutions operating in Malta must exercise extreme caution and vigilance. Licence Holders are required to:

  • Monitor their business relationships
  • Verify records
  • Identify any funds, assets, or economic resources connected to sanctioned parties
  • Report findings to the Sanctions Monitoring Board and the Malta Financial Services Authority (MFSA)

Unilateral US Sanctions

In addition to UN and EU sanctions, financial institutions must also be aware of unilateral US sanctions imposed on various countries, individuals, and entities. The MFSA advises Licence Holders and the public to take US sanctions into consideration when conducting business activities, as these measures can have significant implications for their operations.

Staying Informed

The information provided by the MFSA aims to assist Licence Holders and other interested persons in complying with international sanctions. To stay informed, Licence Holders and interested parties are urged to:

  • Consult the Sanctions Monitoring Board’s website
  • Seek professional advice as needed

Conclusion

By staying compliant with international sanctions, financial institutions operating in Malta can ensure that they do not inadvertently support illegal activities or become implicated in the violation of sanctions.