Financial Crime World

Malta’s Efforts on Beneficial Ownership Transparency Raise Questions

A Slow Start to Implementation

Despite being a European Union member, Malta has been slow to implement beneficial ownership transparency reforms. The country was obligated to create a central, public register of beneficial ownership as part of the EU’s fifth Anti-Money Laundering Directive.

Limitations on Public Access

However, following a court ruling in November 2022, Malta is no longer required to provide public access to this information. Instead, the government must make it available to those who can demonstrate a legitimate interest. This decision has sparked concerns about the effectiveness of beneficial ownership transparency in Malta.

The Malta Business Registry: A Useful Tool or Not?

  • Launched in 2018, the Malta Business Registry was intended to promote transparency and accountability.
  • However, the registry does not publicly release structured data or allow access via API, limiting its usefulness in combating money laundering and other financial crimes.

Commitments Made, but Will They Be Kept?

At the 2023 Summit for Democracy, Malta committed to effective implementation of beneficial ownership transparency measures and the maintenance of a beneficial ownership registry or an alternative mechanism. However, it remains to be seen whether the country will follow through on this commitment.

The Importance of Public Access

Critics argue that without public access to beneficial ownership information, it is difficult to hold companies accountable for their activities. This lack of transparency can also make it easier for corrupt individuals and entities to hide their assets and engage in illicit activities.

Prioritizing Transparency and Accountability

As Malta continues to navigate its obligations under EU anti-money laundering laws, it is essential that the country prioritizes transparency and accountability in its beneficial ownership registry. Only through open and accessible information can we truly ensure that companies are held accountable for their actions and that money laundering is effectively combated.