Financial Crime World

Malta’s Justice Minister Unveils Amendments to Soften Impact of Financial Crimes

Introduction

Malta’s Justice Minister Jonathan Attard has announced a series of sweeping changes to the country’s court proceedings for financial crimes. The amendments aim to mitigate the effects of jurisdictional obligations and ensure that government bodies can effectively freeze significant assets, while also providing relief to individuals and businesses affected by the crackdown on financial malfeasance.

Key Changes

  • 90-Day Timeframe: Attorneys seeking to freeze accounts in money laundering cases will now be required to specify to the court what assets and how much money can be frozen within a 90-day timeframe.
  • Appeal Process: Decisions to uphold such requests will be subject to appeal before the criminal court, allowing for greater transparency and accountability.
  • Continuation of Operations: Individuals or businesses accused of financial crimes can continue operating their companies or professions until the conclusion of proceedings, provided they request permission from the court. This includes seeking approval for recurring expenses such as:
    • School fees
    • Insurance payments
    • Loan repayments

Streamlining the Process

  • Freezing and Garnishee Orders: The new procedure aims to streamline the process for freezing and garnishee orders in money laundering cases. These orders will now be valid for six months and can be subject to variations, including the release of funds to ensure a simple living.

Greater Flexibility

  • Withdrawal Limits: Those affected by freezing orders will be able to withdraw a maximum of €13,000 per year.
  • Financial Affairs Management: The amendments also provide greater flexibility in managing financial affairs, allowing individuals and businesses to access basic necessities such as medicine without the need for court approval.

Minister’s Statement

The minister has stated that these amendments are part of a broader effort to improve Malta’s anti-money laundering (AML) system and jurisdictions. He acknowledged that the previous approach had created hardship for individuals and businesses, with some having to apply to the court to access basic necessities every month.

Conclusion

The changes have been welcomed by critics who argued that the country’s AML regime was too restrictive. The amendments are expected to come into effect once published in the government gazette, bringing welcome relief to those affected by Malta’s aggressive anti-financial crime campaign.