Malta Introduces Beneficial Ownership Register to Enhance Transparency

In a move to boost transparency and combat money laundering, the Maltese government has introduced the Beneficial Ownership Register, requiring entities to disclose their ultimate beneficial owners. The register is accessible to various national authorities and subject persons for customer due diligence purposes.

Scope of Application

The register applies to:

• Companies
• Partnerships
• Foundations
• Trusts
• Associations in Malta

Required Information

Entities must provide information on the beneficial owner’s:

• Name
• Month and year of birth
• Nationality
• Country of residence
• Extent and nature of the beneficial interest

In the case of trusts, only competent authorities and subject persons have access to the register.

Definition of Beneficial Owner

A beneficial owner is defined as an individual who:

• Owns or controls a legal entity through direct or indirect ownership of a sufficient percentage of shares or voting rights
• Includes shareholdings of 25% plus one share or ownership interests above 25% for companies
• Consists of the settlor, trustee(s), protector (where applicable), beneficiaries, and any other natural person exercising ultimate control for trusts

Compliance Requirements

The register came into effect on January 1, 2018, requiring entities to:

• Conduct in-depth analysis of their ownership structure
• Maintain an internal beneficial ownership register
• Include information such as:
  • Official full name
  • Date of birth
  • Nationality
  • Country of residence
  • Identification number
  • Type of document
  • Country of issue
  • Nature and extent of the beneficial interest
  • Any changes to the beneficial interest

Compliance Deadlines

Entities formed after January 1, 2018:

• Are immediately required to comply with the new regulations

Entities formed prior to January 1, 2018:

• Have a six-month period to comply

Trusts do not have a compliance deadline as they must generate tax consequences first.

Consequences of Non-Compliance

Non-compliance with the beneficial ownership register obligation may result in fines or imprisonment.

Assistance from Grant Thornton

To assist entities in complying with these requirements, Grant Thornton offers services such as:

• Advice on the rules
• Assessment of controlling structures
• Setup and maintenance of internal beneficial ownership registers
• Submission of forms to the respective registries

These services are provided in accordance with the General Data Protection Regulations (GDPR).