Central Bank of Malta Abolishes Bearer Accounts by June 30th, 2000
In a significant move to combat money laundering and financial crimes, the Central Bank of Malta has announced that all bearer accounts will be abolished by June 30th, 2000. This decision was made in accordance with a joint directive issued by the Central Bank of Malta, the Malta Stock Exchange, and the Malta Financial Services Centre (MFSC) in March 2001.
New Regulation Requires Disclosure of Beneficial Owners
The new regulation requires all banks, stockbrokers, and other financial institutions to refrain from undertaking transactions involving nominee shareholding unless they obtain full disclosure of the beneficial owners. This move is aimed at increasing transparency and reducing the risk of money laundering and terrorist financing.
New Bill Introduces Significant Changes in Money Laundering Legislation
Malta has also introduced a new bill, the Criminal Code (Amendment) Act 2001, which is expected to be adopted by mid-2002. This bill introduces several significant changes to the country’s money laundering legislation, including:
- Extending Freezing and Forfeiture Orders: Extends freezing and forfeiture orders to all offenses punishable by imprisonment of at least one year
- Expanding Definition of Conspiracy: Expands the definition of “conspiracy” to include all crimes punishable by imprisonment
- New Definitions for Criminal Association, Corruption, and Other Offenses: Creates new definitions of various forms of criminal association, corruption, usury, trafficking in persons, and other offenses
- Simplifying Procedures for International Legal Assistance and Extradition: Simplifies procedures for international legal assistance and extradition
The bill also amends the 1994 Prevention of Money Laundering Act by:
- Shifting Burden of Proof: Shifting the burden of proof to the accused
- Creating Corporate Criminal Liability: Creating corporate criminal liability for money laundering offenses
- Forfeiture of Proceeds from Legal Persons: Providing for the forfeiture of proceeds from legal persons
Developments in Anti-Money Laundering System
Since the initial round of evaluations, there have been several developments in Malta’s anti-money laundering system. The country has:
- Established New Institutions: Established new institutions such as the Financial Intelligence Unit (FIU) and the Gaming Board
- Set Up Specialized Units: Set up a specialized unit to combat money laundering by the Malta Police
The financial regulatory framework has also undergone significant changes, with the introduction of the Malta Financial Services Authority (MFSA), which has taken over the regulatory functions previously performed by three separate bodies: the Central Bank of Malta, the MFSC, and the Malta Stock Exchange.
Licence Holders Under Current Regulatory Competence
As of 2001, there are:
- 15 Locally Based Collective Investment Schemes
- 95 Investment Services Licence Holders
- 5 Life Insurance Principals
- 1 Agent for Life Insurance
- 20 Brokers for Life Insurance
- 277 Sub-Agents for Life Insurance Products
- 111 Nominees, with 40 managing offshore companies
MFSC Reinforces On-Site Supervision
The MFSC has reinforced its activities of on-site supervision of investment services licence holders and is implementing a comprehensive on-site supervision program for insurance business and nominees.
Conclusion
In conclusion, the Central Bank of Malta’s decision to abolish bearer accounts by June 30th, 2000, along with the introduction of new legislation and developments in anti-money laundering systems, demonstrate the country’s commitment to combating money laundering and financial crimes.