Financial Crime World

Malta Introduces Financial Sanctions Regime to Protect National and International Interests

A Comprehensive Framework for Strengthening the Financial System

Valletta, Malta - The Maltese government has introduced a comprehensive sanctions regime aimed at protecting national and international interests. The National Interest (Enabling Powers) Act, Chapter 365 of the Laws of Malta, enables the implementation of treaties and measures to restrict trade and travel where necessary.

Binding Regulations and Enforcement

The regulations are binding in their entirety in Malta and shall be part of the domestic law. United Nations Security Council Resolutions imposing sanctions automatically take effect, and the Maltese Financial Services Authority (MFSA) requires its license holders to comply with international sanctions. The MFSA also monitors business relationships and freezes funds and assets as required.

EU Regulations and UN Security Council Resolutions

EU Regulations and UN Security Council Resolutions have direct effect in Malta, while implementation regulations for enforcement and the imposition of penalties are adopted at a national level. Companies and individuals are encouraged to take US sanctions into consideration when conducting business activities.

The Sanctions Monitoring Board

The Sanctions Monitoring Board, established within the Ministry of Foreign Affairs, is responsible for monitoring the implementation and operation of sanctions legislation. The board has the power to authorize access to frozen funds or other assets and impose administrative penalties for breaches of regulations.

Consequences of Non-Compliance

Any person found guilty of violating sanctions regulations may face:

  • Imprisonment from twelve months to twelve years
  • A fine of up to €5 million, or both
  • Administrative breaches may result in fines ranging from €100 to €800 per contravention, with daily cumulative penalties reaching up to €1,000

Enforcement and Compliance

The MFSA and the Sanctions Monitoring Board are responsible for enforcing sanctions regulations. Contact details are available at the Ministry of Foreign Affairs’ website.

Conclusion

Malta’s financial sanctions regime aims to protect national and international interests by ensuring compliance with EU Regulations and UN Security Council Resolutions. The country’s regulators and law enforcement agencies will work together to prevent breaches and impose penalties on those found guilty of violating sanctions regulations.