Financial Crime World

Malta Prepares for Stricter Anti-Money Laundering Regulations Amidst EU Agreement on Proposals

The European Council and European Parliament have reached a political agreement on the proposed Regulation on the prevention of the use of the financial system for money laundering or terrorist financing (AMLR) and Directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for money laundering or terrorist financing (AMLD6).

Impact on Malta’s Financial Sector

These regulations, part of the European Commission’s package to strengthen EU rules on anti-money laundering and countering the financing of terrorism (AML/CFT), will have a significant impact on Malta’s financial sector.

Key Changes

  • The list of “obliged entities” will be expanded to include most crypto asset service providers, who will be required to undertake due diligence on customers for transactions above €1,000.
  • Traders of luxury goods, professional football clubs and agents will also be subject to AML-CFT requirements.
  • Enhanced due diligence measures will be introduced for certain financial institutions.
  • Cash payment limits will be implemented.
  • Stricter rules on beneficial ownership will be enforced.

Beneficial Ownership Registers

Beneficial ownership registers will be established in each Member State, with access granted to:

  • Persons with a legitimate interest
  • The press
  • Civil society

Financial Intelligence Units (FIUs) will have prompt and direct access to financial information, enabling them to suspend or withhold consent for transactions.

Supervision and Risk Assessment

National supervisors will ensure that obliged entities are supervised by an adequate and effective supervisor. Risk assessments will continue to play a crucial role in mitigating money laundering and terrorist financing threats.

Next Steps

The proposals will now need to be finalised and approved by the Committee of Permanent Representatives and the European Parliament before being published in the Official Journal of the EU.