Financial Crime World

Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Obligations in Malta

Malta has implemented various regulations to combat money laundering and the financing of terrorism. This article outlines the key obligations of subject persons, including financial institutions, in Malta.

Reporting Obligations

Subject persons in Malta are required to report any suspicious transactions or activities to the Financial Intelligence Analysis Unit (FIAU). This includes:

  • Identifying Suspicious Transactions: Subject persons must be able to identify and report suspicious transactions that may indicate money laundering or terrorist financing.
  • Reporting Requirements: Subject persons must submit reports to the FIAU in a timely and accurate manner.

Risk Management

Subject persons must conduct ongoing monitoring of business relationships and maintain risk management procedures. This includes:

  • Conducting Business Relationship Monitoring: Subject persons must regularly review and update their understanding of customers’ business activities, financial situation, and risk profile.
  • Risk Assessment: Subject persons must assess the risks associated with customers and transactions to determine whether they are suspicious or not.

Know Your Customer (KYC)

Subject persons must identify and verify the identity of customers, including directors and beneficial owners. This includes:

  • Customer Due Diligence: Subject persons must collect and verify customer identification data, such as name, address, date of birth, and identification documents.
  • Beneficial Ownership Verification: Subject persons must verify the ownership structure of customers to ensure that they are aware of who ultimately controls the customer.

Record Keeping

Subject persons must retain documents and information for regulatory purposes. This includes:

  • Maintaining Records: Subject persons must maintain accurate and up-to-date records of customer transactions, including suspicious activity reports.
  • Retention Periods: Subject persons must retain records for a minimum period as specified by regulations.

Compliance Services

CSB Group provides AML/CFT compliance services to help subject persons implement effective procedures to prevent money laundering and terrorist financing. These services include:

  • Risk Assessments: CSB Group can conduct risk assessments to identify areas of high risk and provide recommendations for improvement.
  • Reporting Requirements: CSB Group can assist with submitting reports to the FIAU in a timely and accurate manner.
  • Policy Development: CSB Group can help develop AML/CFT policies and procedures that meet regulatory requirements.