Malta Introduces Beneficial Ownership Requirements to Strengthen Transparency

A Major Step Forward in Combating Financial Crime

In an effort to increase transparency and combat financial crime, the Maltese government has introduced new regulations requiring companies operating in the country to maintain a register of beneficial owners. The Companies Act (Register of Beneficial Owners) Regulations, which came into effect on June 16th, 2020, aim to identify the ultimate controllers of companies and other legal entities.

What Does This Mean for Maltese Companies?

Under the new rules, Maltese companies are required to hold accurate and up-to-date information on their beneficial owners, including:

• Names
• Dates of birth
• Nationalities
• Residential addresses

This information must be kept in a public register, accessible to authorized parties such as law enforcement agencies and financial regulators.

Why is This Important?

The introduction of beneficial ownership requirements is seen as a major step forward in Malta’s efforts to boost transparency and combat money laundering and terrorist financing. The country has faced criticism in the past for its perceived lack of transparency in corporate ownership, which has led to concerns about the potential for illicit activities.

Consequences of Non-Compliance

Companies that fail to comply with the new regulations risk facing penalties and fines, highlighting the importance of maintaining accurate records and adhering to the new requirements.

Part of a Broader Effort

The introduction of beneficial ownership requirements is part of Malta’s broader efforts to strengthen its financial regulatory framework and maintain its position as a reputable international financial center. By increasing transparency and combating financial crime, Malta aims to establish itself as a trusted and reliable destination for businesses and investors.