Malta Introduces New Banking Regulations to Combat Money Laundering and Terrorism Funding

Strengthening Anti-Money Laundering Framework

Malta has recently published new regulations aimed at preventing money laundering and funding of terrorism. The Prevention of Money Laundering and Funding of Terrorism Regulations came into effect on July 26, 2021, and are designed to strengthen the country’s anti-money laundering framework.

Requirements for Financial Institutions

The regulations, part of Malta’s implementation of EU directives, require financial institutions to implement strict controls to prevent their services from being used for money laundering or terrorist financing. The rules apply to all credit and financial institutions operating in Malta, including:

• Banks
• Investment firms
• Insurance companies

Enhanced Customer Due Diligence and Transaction Monitoring

Under the new regulations, financial institutions will be required to:

• Carry out regular customer due diligence
• Monitor transactions for suspicious activity
• Report any suspected instances of money laundering or terrorism funding to the relevant authorities
• Maintain records of all customer interactions and transactions for a minimum period of five years

Penalties for Non-Compliance

The regulations also establish strict penalties for non-compliance, including:

• Fines
• Criminal prosecution in serious cases

International Standards Alignment

According to experts, the new regulations are designed to bring Malta’s anti-money laundering framework into line with international standards and prevent the country from being used as a haven for illicit financial activities.

Accessing the Regulations

The Prevention of Money Laundering and Funding of Terrorism Regulations can be accessed on the Maltese government’s website.