Financial Crime World

Malta Tightens Anti-Money Laundering Laws to Combat Criminal Activity

The rapid evolution of criminal and terrorist threats at both national and international levels has led to the establishment of robust legal provisions aimed at preventing and combating money laundering and terrorist financing. Malta’s legislative framework has been bolstered by a range of laws and regulations, designed to keep pace with emerging threats and global standards.

Prevention of Money Laundering Act

At the heart of these efforts is the Prevention of Money Laundering Act (PMLA), Chapter 373 of the Laws of Malta, which sets out the country’s anti-money laundering obligations. The PMLFTR Regulations SL 373.01 provide further detail on the measures required to prevent money laundering and fund terrorism.

Criminal Code

The Criminal Code, Chapter 9 of the Laws of Malta, also plays a crucial role in combating financial crime, with Subtitle IV Article 328A to 328M outlining specific offenses related to money laundering and terrorist financing.

National Coordinating Committee on Combating Money Laundering and Funding of Terrorism Regulations

Malta’s National Coordinating Committee on Combating Money Laundering and Funding of Terrorism Regulations SL 373.02 oversees the implementation of anti-money laundering measures, while the Centralised Bank Account Register Regulations SL 373.03 and Use of Cash (Restriction) Regulations SL 373.04 provide additional tools to prevent illicit financial activity.

International Standards

The European Commission has established international standards on preventing money laundering through the Financial Action Task Force (FATF) Recommendations, which Malta has incorporated into its national legislation. The EU’s anti-money laundering framework requires member states to introduce measures aimed at preventing legal persons from being used for money laundering or terrorist financing purposes.

Recent Developments in EU Law

Recent developments in EU law have seen the publication of the:

  • Fourth Anti-Money Laundering Directive (EU) 2015/849
  • Fifth Anti-Money Laundering Directive (EU) 2018/843
  • Sixth Anti-Money Laundering Directive (EU) 2018/1673

These Directives have been implemented in Malta, with the following key dates:

  • Fourth Anti-Money Laundering Directive: Came into effect on June 26, 2017
  • Fifth Anti-Money Laundering Directive: Took effect on June 20, 2018
  • Sixth Anti-Money Laundering Directive: Will become applicable on December 3, 2020, with all member states required to implement its provisions by June 3, 2021

Access the Directives through the following hyperlinks:

  • Fourth Anti-Money Laundering Directive (EU) 2015/849
  • Fifth Anti-Money Laundering Directive (EU) 2018/843
  • Sixth Anti-Money Laundering Directive (EU) 2018/1673