Here is the rewritten article in markdown format:
Financial Crime Reporting Requirements in Malta: A Guide for Compliance
Malta has implemented various international sanctions aimed at combating financial crime, terrorism, and other threats to global peace and security. These sanctions are primarily issued by the United Nations Security Council and the European Union, and they impose restrictive measures on targeted individuals, companies, and entities.
Background
The National Interest (Enabling Powers) Act of Malta provides for the implementation of these sanctions, which include restrictions on trade, travel, financial services, and the freezing of funds and assets. Any person or entity found to be supporting activities, individuals, or entities subject to sanctions may face legal consequences, including fines and imprisonment.
Role of the MFSA
The Malta Financial Services Authority (MFSA) is responsible for overseeing the compliance of its licensed entities with international sanctions. As part of this effort, the MFSA requires its license holders to take note of all international sanctions as issued from time to time and to exercise caution and vigilance in their business dealings.
Responsibilities of License Holders
License holders must:
- Monitor their relationships with other parties and verify records on an ongoing basis for any information or transactions known or suspected to be connected to designated individuals or entities.
- Identify and freeze any funds, financial assets, and economic resources in accordance with the requirements of the sanctions.
Reporting Requirements
In addition to complying with international sanctions, license holders are required to report their findings to:
- The Sanctions Monitoring Board
- The MFSA
- Inform the latter of any action taken, including reporting on any funds, financial assets, or economic resources that have been identified as belonging to designated individuals or entities and which have been frozen in accordance with the sanctions.
Reporting Requirements for Credit Institutions
The MFSA has informed credit institutions of developments related to reporting requirements under Council Regulations:
- (EU) No 267/2012 (Iran)
- (EU) 208/2014 (Ukraine)
- (EU) 101/2011 (Tunisia)
- (EU) 270/2011 (Egypt)
These regulations require the submission of information relating to entities or individuals subject to restrictive measures imposed by the respective sanctions.
Sanctions Monitoring Board
The Sanctions Monitoring Board is responsible for coordinating the collation and transmission of this information. License holders are encouraged to consult its website for complete and up-to-date information on international sanctions.
Unilateral Sanctions Legislation
It is important to note that unilateral sanctions legislation has also been enacted by the United States of America. While these measures differ from those imposed by the UN and EU, they still have significant implications for businesses operating in Malta. As such, license holders are urged to take US sanctions into consideration when conducting business activities.
Conclusion
Compliance with international sanctions is a critical aspect of doing business in Malta. License holders must be aware of and comply with these requirements to avoid legal consequences. The Sanctions Monitoring Board and the MFSA provide resources and guidance to assist license holders in this regard, and it is recommended that they seek professional advice as necessary to ensure compliance.