Financial Crime World

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MALTA ADOPTS EU GUIDELINES ON ANTI-MONEY LAUNDERING

The European Union’s fifth Anti-Money Laundering Directive (5AMLD) has been transposed into Maltese law, introducing significant changes to the country’s anti-money laundering regulations. The directive aims to enhance the prevention of money laundering and terrorist financing by strengthening the legal requirements for financial institutions and other subject persons.

New Guidelines

Under the new guidelines, Malta has introduced publicly available registers for:

  • Companies
  • Trusts
  • Other legal arrangements

This provides greater transparency in beneficial ownership.

Financial Intelligence Units across the EU will also benefit from enhanced powers, including improved information sharing for their tasks.

Cooperation and Harmonization

Malta’s anti-money laundering supervisors will now have increased cooperation with the European Central Bank. The anonymity surrounding virtual currencies and wallet providers has been limited. Central bank account registries are also set to be established in all Member States.

Sixth Anti-Money Laundering Directive (6AMLD)

The sixth Anti-Money Laundering Directive aims to eliminate potential loopholes in domestic legislation by harmonizing the definition of money laundering and penalties across the EU. This directive also brings cybercrime into scope as a predicate offence for money laundering, extending criminal liability to legal persons.

Malta’s Regulatory Framework

Malta’s local regulatory framework is based on:

  • The Prevention of Money Laundering Act
    • Sets out definitions of money laundering and predicate offences
  • The Maltese Criminal Code
    • Outlines terrorist financing offenses
  • The Prevention of Money Laundering and Financing of Terrorism Regulations
    • Imposes obligations and procedures on subject persons

Subject Persons

In Malta, the following entities are considered subject persons:

  • Company service providers
  • Gaming licensees
  • Real estate agents
  • Notaries and legal professionals
  • Insurance agents and intermediaries
  • Financial institutions

These entities must implement a risk-based approach to customer information and documentation, report suspicious transactions, provide training, and maintain awareness of anti-money laundering regulations.

Implementation

The implementation of these guidelines is expected to strengthen Malta’s efforts in combating money laundering and terrorist financing, enhancing the country’s reputation for transparency and regulatory compliance.