Malta Tightens Squeeze on Money Laundering
Malta has taken a significant step forward in its fight against money laundering by strengthening its anti-money laundering (AML) laws. The new regulations require certain individuals and entities to disclose their source of income and undergo rigorous due diligence checks.
Mandatory Disclosure Requirements
Under the new law, anyone engaging in financial transactions or activities deemed “relevant” by the authorities must provide detailed information about the origin of their wealth. This includes:
- Individuals with a net worth exceeding €1 million
- Entities with a turnover exceeding €5 million
- Businesses carrying out financial activities (such as notaries, lawyers, real estate agents, accountants, and others)
Failure to comply with these disclosure requirements can result in severe penalties, including:
- Fines of up to €2.5 million
- Prison sentences of up to 18 years
Enhanced Due Diligence Checks
The law also requires businesses carrying out financial activities to conduct thorough background checks on their clients and maintain detailed records of transactions. This includes:
- Verifying the identity and background of clients
- Conducting regular reviews of client relationships
- Maintaining accurate and up-to-date records of transactions
Expert Reaction
Anti-money laundering experts have welcomed the new regulations, saying they will help to disrupt the illegal flow of funds and protect the integrity of the global financial system.
“We are pleased to see Malta taking a strong stance against money laundering,” said an expert from BDO Malta, a leading AML compliance firm. “Our team is well-equipped to assist businesses in complying with these new regulations and ensuring that they maintain a robust culture of compliance.”
Additional Measures
The law also grants authorities the power to confiscate assets believed to be linked to illegal activities, and requires financial institutions to report any suspicious transactions.
Malta’s move comes as part of its efforts to implement stricter AML measures and meet international standards. The country has been working closely with other European Union member states and international organizations to combat money laundering and terrorist financing.
“We are committed to doing everything in our power to prevent the misuse of our financial system,” said a government spokesperson. “These new regulations will help us achieve that goal.”