Malta Tightens Banking Regulations for Anti-Money Laundering Efforts
In a bid to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, Malta’s financial watchdog has issued new regulations governing banking practices in the country. This move comes as part of efforts to prevent the misuse of financial systems for illicit activities.
Monitoring Compliance with Anti-Money Laundering Laws
The Malta Gaming Authority (MGA), responsible for supervising land-based and remote gaming operators, has been tasked with monitoring compliance with anti-money laundering laws and reporting any non-compliance to the Financial Intelligence Analysis Unit (FIAU).
MGA’s Role as FIAU Agent
As an FIAU agent, the MGA will assist in the identification of suspicious transactions and provide information on casino and gaming licensees that fail to comply with AML/CFT regulations.
New Regulations for Gaming Operators
According to the new rules, gaming operators offering Type 1, 2, and 3 games must adopt a risk-based approach to AML/CFT measures. This involves:
- Identifying risks and vulnerabilities
- Implementing controls and procedures to mitigate them
Requirements for Licensees
Licensees are required to:
- Perform a business risk assessment
- Develop a customer acceptance policy
- Outline their AML/CFT policies and procedures
- Appoint a Money Laundering Reporting Officer (MLRO) who will analyze suspicious activity and file reports with the FIAU as necessary
Additional Requirements
The MGA has also introduced new requirements for licensees to:
- Register with the FIAU
- Have an approved Key AML Function
Implementing Procedures
The FIAU has issued implementing procedures that are legally binding instruments. These procedures provide detailed guidelines on AML/CFT measures for various sectors, including the remote gaming sector and land-based casinos.
A Significant Step in Combatting Money Laundering
This move is seen as a significant step in Malta’s efforts to combat money laundering and terrorist financing. The country’s financial authorities have been working closely with international partners to strengthen its anti-money laundering framework and ensure compliance with global standards.