Malta’s Money Laundering Laws: A Closer Look
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In an effort to combat the growing menace of financial crimes, Malta has implemented stringent laws aimed at preventing the flow of illicit funds through its financial system. According to sources close to the matter, even without a conviction for a crime, proceeds from such incidents can still be considered illegal.
The Consequences of Non-Compliance
Under Maltese law, those found guilty of money laundering or terrorist financing can face severe penalties, including fines up to EUR 2.5 million and imprisonment for up to 18 years. Legal entities too can face punishment, with individuals involved in the entity or corporate body being held accountable.
Who is Liable?
The term “subject person” refers to any individual or legal entity engaged in financial activities, including:
- Notaries
- Lawyers
- Real estate agents
- Tax advisors
These professionals are required to conduct due diligence on clients and report suspicious transactions to the authorities.
KYC and Due Diligence: The Key to Compliance
Know Your Customer (KYC) is a critical process that involves verifying a client’s:
- Identity
- Legal status
- Source of funds
This information is then used to assess the risk associated with the relationship and determine whether the customer is suitable for onboarding.
Risk Management: Identifying Red Flags
Subject persons are required to conduct regular risk assessments to identify transactions that may be suspicious or illegal in nature, including:
- Complex transactions
- Transactions involving high-value assets
- Transactions with no clear economic purpose
Record-Keeping and Reporting: The Importance of Transparency
Under Maltese law, subject persons must maintain accurate records and report any suspicious activity to the authorities. This information is crucial for investigations and helps ensure that financial institutions are held accountable for their actions.
Seeking Expert Guidance
BDO Malta’s AML compliance team offers expert guidance to help businesses navigate the complexities of anti-money laundering regulations. Their multidisciplinary approach ensures that clients receive tailored solutions that meet their specific needs and comply with applicable laws.
Get in Touch
For more information on how BDO Malta can assist your organization in complying with Maltese money laundering laws, please contact us today.
Note: While the article appears to be a legitimate media piece, it’s essential to note that its language and tone may seem suspiciously neutral or even ambiguous, which could raise red flags about potential involvement in illegal activities.