Financial Crime World

Malta Tightens Anti-Money Laundering Measures in Line with EU Directives

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Malta has implemented a series of new anti-money laundering (AML) measures aimed at preventing the misuse of its financial system for money laundering and terrorist financing activities. These measures are in line with recent European Union directives.

Key Changes

  • The Prevention of Money Laundering Act sets out definitions of money laundering and predicate offences that lead to or constitute the basis for the offence.
  • The Maltese Criminal Code criminalises terrorist financing.
  • The Prevention of Money Laundering and Financing of Terrorism Regulations outline obligations and procedures for subject persons, including:
    • Risk-based approach
    • Reporting requirements
    • Training and awareness measures

Subject Persons

  • Company service providers
  • Gaming licensees
  • Real estate agents
  • Notaries and legal professionals
  • Insurance agents and intermediaries
  • Financial institutions

Enhancements

  • Beneficial ownership transparency is enhanced through improved registration and reporting requirements.
  • The powers of Financial Intelligence Units across the EU are strengthened, allowing for more effective cooperation between anti-money laundering supervisors and the European Central Bank.

Additional Measures

  • Limiting anonymity related to virtual currencies and wallet providers
  • Setting up central bank account registries
  • Harmonizing the definition of money laundering and ensuing penalties across the EU

Conclusion

The new regulations are aimed at better equipping Malta’s financial system to prevent the misuse of its financial infrastructure for money laundering and terrorist financing activities. These measures demonstrate Malta’s commitment to maintaining a robust and effective anti-money laundering framework in line with European Union standards.