Malta Adopts Strict AML Policies and Procedures Amid International Sanctions Concerns
Introduction
The tiny island nation of Malta has taken a proactive approach to combating money laundering and terrorist financing by implementing robust anti-money laundering (AML) policies and procedures in response to international sanctions.
International Sanctions: An Overview
International sanctions, also known as restrictive measures, are issued by the United Nations Security Council and the European Union. These sanctions aim to address various global concerns, including:
- Threats to peace
- Human rights violations
- Terrorism
Implementation of Sanctions in Malta
Malta’s National Interest (Enabling Powers) Act provides for the implementation of United Nations Security Council Resolutions and EU Council and Commission Regulations concerning restrictive measures. The Sanctions Monitoring Board, established under the Act, is responsible for monitoring and enforcing compliance with these sanctions.
AML Obligations on Licence Holders
Malta’s Financial Intelligence Analysis Unit (FIAU) requires licence holders to:
- Take note of all international sanctions
- Exercise caution in their business dealings
- Monitor relationships and verify records for any information connected to designated individuals or entities
- Freeze funds, financial assets, and economic resources in accordance with the requirements of the sanctions
Reporting Requirements
The FIAU has notified credit institutions about reporting requirements under Council Regulation (EU) No 267/2012 concerning restrictive measures against Iran and other relevant regulations. The Sanctions Monitoring Board coordinates the collation and transmission of this information.
US Sanctions: A Consideration
In addition to EU sanctions, Malta licence holders and the public are encouraged to take US sanctions into consideration when conducting business activities. US sanctions legislation provides for various types of action that can be taken by the US Government, including measures targeted at foreign persons or entities.
Conclusion
Malta’s adoption of strict AML policies and procedures demonstrates its commitment to combating money laundering and terrorist financing. Licence holders and interested parties are urged to:
- Consult relevant Sanctions Monitoring Board, United Nations, and EU websites for complete and up-to-date information
- Seek professional advice as necessary to ensure compliance with international sanctions