Financial Crime World

Malta’s Financial Regulation Enforcement Agencies Crack Down on Non-Compliance

Malta’s Financial Intelligence Analysis Unit (FIAU) has been empowered to impose administrative penalties and other measures on financial institutions that breach anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.

Authority and Responsibilities

According to Article 13 of the Prevention of Money Laundering Act and Regulation 21 of the Prevention of Money Laundering and Funding of Terrorism Regulations, the FIAU can take action against institutions that fail to comply with rules, regulations, or directives. The Enforcement Section at the FIAU is responsible for ensuring that administrative measures are implemented on financial institutions found to have committed AML/CFT breaches.

Compliance Monitoring

The Enforcement Section works closely with the Compliance Monitoring Committee (CMC) to identify potential breaches and take appropriate action. This includes following up on institutions to ensure they take corrective action to rectify the situation.

Enforcement Actions

Enforcement actions by the FIAU include:

  • Engaging with financial institutions through a fair process
  • Taking necessary administrative measures to ensure compliance
  • Ensuring that measures taken are proportionate, effective, and dissuasive

The agency seeks to prevent non-compliance by identifying potential breaches early on and taking swift action to rectify the situation.

Situations Leading to Enforcement Action

The Enforcement Section at the FIAU acts in response to a range of situations, including:

  • Compliance reviews carried out by Supervision that identify potential breaches of AML/CFT obligations
  • Failure to submit or late submission of the Risk Evaluation Questionnaire (REQ) and/or the SP Profile on CASPAR
  • Failure to reply or late reply to requests for information made by the FIAU
  • Potential breaches identified by the Central Bank Account Register (CBAR) team

Commitment to Compliance

The FIAU’s Enforcement Section is committed to ensuring that financial institutions in Malta comply with AML/CFT regulations, and will take action against those found to be non-compliant.