MALTA TO ENFORCE NEW AML GUIDELINES
Malta has reached a significant milestone in its efforts to combat money laundering and terrorist financing. The European Council and Parliament have agreed on new anti-money laundering (AML) guidelines that will soon be enforced across the EU, including Malta.
New Guidelines Aim to Strengthen EU’s Rules on AML/CFT
The guidelines, which include a regulation on the prevention of the use of the financial system for money laundering or terrorist financing (AMLR) and a directive on mechanisms to prevent such activities at the national level (AMLD6), aim to strengthen the EU’s rules on AML/CFT. The new guidelines will cover most entities operating in the crypto sphere, as well as traders of luxury goods and professional football clubs.
Key Highlights of the New Guidelines
- Increased Due Diligence Measures: Obligated entities, including crypto-asset service providers and credit and financial institutions, will be required to implement increased due diligence measures.
- Enhanced Cash Payment Limits: Cash payment limits have been set at €10,000, with stricter verification requirements for occasional transactions between €3,000 and €10,000.
- Simplified Beneficial Ownership Rules: The threshold for beneficial ownership control has been set at 25% ownership control, with new requirements for non-EU entities operating in the EU.
- Stricter Measures for High-Risk Third Countries: Enhanced due diligence requirements and restrictions on business relationships will be applied to high-risk third countries.
New Obligations for Financial Intelligence Units (FIUs)
The guidelines also introduce new obligations for FIUs to share information and suspend transactions suspected of being linked to money laundering or terrorist financing.
Implementation and Enforcement
Malta’s regulatory authorities will need to ensure that all obliged entities established under Maltese law are supervised by an adequate and effective supervisor, which will apply a risk-based approach supervision and report any suspicions to the local FIU. The new guidelines will be finalised and presented to member states’ representatives in the Committee of Permanent Representatives and the European Parliament for approval. Once approved, they will be published in the Official Journal of the EU and enforced.
Important Notice
Financial institutions and other obliged entities are advised to review the updated guidelines and ensure that their policies, procedures, systems, and controls comply with the new requirements.