Malta Adopts Anti-Money Laundering Regulations to Combat Terrorism and Financial Crime

Introduction

The Maltese government has introduced new regulations aimed at preventing money laundering and the funding of terrorism. The Prevention of Money Laundering and Funding of Terrorism Regulations, published on July 26, 2021, are part of Malta’s efforts to combat financial crime and maintain its reputation as a reputable financial hub.

Key Provisions

The regulations, drafted in accordance with the EU’s anti-money laundering directive, set out strict rules for financial institutions and other businesses to prevent money laundering and terrorist financing. The measures include:

• Enhanced customer due diligence: Financial institutions will be required to conduct thorough background checks on their customers.
• Reporting obligations: Businesses must report any suspicious activity to the authorities.
• Restrictions on certain transactions: Transactions with individuals or entities suspected of involvement in terrorist activities will be prohibited.

Objectives

The Maltese government has emphasized the importance of these regulations in maintaining the country’s financial stability and preventing the misuse of its financial system for illegal purposes. The regulations are also expected to:

• Enhance Malta’s reputation: As a reliable partner for international businesses and investors.
• Combat financial crime: By preventing money laundering and terrorist financing.

International Recognition

The EU has praised Malta’s efforts in combating money laundering and terrorist financing, citing the country’s strong legal framework and effective implementation of anti-money laundering measures.

Accessing the Regulations

The Prevention of Money Laundering and Funding of Terrorism Regulations can be accessed on the website of the European Union’s Official Journal.