Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Regulations in Malta

Introduction

Malta has implemented robust Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regulations to prevent the misuse of its financial system. As a subject person, including businesses and individuals, it is essential to understand these laws and requirements to ensure compliance.

Key Definitions

Definition of Money Laundering

Money laundering: Any act or omission which involves directly or indirectly concealing or disguising the origin, movement, location, ownership, or rights with respect to property known or suspected to be derived from criminal activity.

Subject Persons

Subject persons: Any legal or natural person carrying out relevant financial business or relevant financial activity.

AML/CFT Requirements

Know Your Customer (KYC) and Due Diligence

Know Your Customer (KYC): A mandatory process whereby a service provider identifies and verifies a potential or actual client.
Due diligence: Verifying the information given in the parameters of the law.

Risk Management

Risk management processes and procedures: Updated and enforced by subject persons to evaluate transactions that can be considered complex, high-value, unusual, or suspicious.

Record-Keeping and Reporting Procedures

Relevant documentation and information: Kept by subject persons to aid any potential investigations by the FIAU or police.

Compliance Support

BDO Malta’s AML compliance team is available to assist clients from all industries with their AML/CFT obligations. Their multidisciplinary experience allows them to focus on the nature of the business and tailor solutions that meet the applicable practical and legal requirements. Services offered include:

Developing AML Compliance frameworks
AML Compliance Reviews
Assistance with creating AML Procedures
AML staff training
Compliance support

By understanding and complying with these regulations, subject persons can ensure the integrity of the financial system in Malta.