Malta Tightens Screws on Anti-Money Laundering Regulations
======================================================
The European Union’s efforts to combat money laundering have been bolstered by the implementation of anti-money laundering (AML) regulations in Malta, a key financial hub in the region.
International Sanctions: A Key Tool Against Money Laundering
International sanctions, also known as restrictive measures, are primarily issued by the United Nations Security Council and the European Union. These measures aim to prevent the misuse of funds for illegal activities, such as terrorism financing, drug trafficking, and other serious crimes.
The Role of Financial Institutions in Combating Money Laundering
Under these regulations, all financial institutions operating in Malta are required to implement robust AML controls to detect and report suspicious transactions. This includes:
- Verifying the identities of customers
- Monitoring their business relationships
- Ensuring compliance with international sanctions
The Maltese Financial Services Authority’s Guidelines
The Maltese Financial Services Authority (MFSA) has issued guidelines to Licence Holders, requiring them to take note of all international sanctions as issued from time to time and to exercise caution and vigilance in conducting business activities. Licence Holders are also required to report the findings of their verifications to:
- The Sanctions Monitoring Board
- The MFSA
The Role of the Sanctions Monitoring Board
The Sanctions Monitoring Board is responsible for monitoring compliance with international sanctions and coordinates the collation and transmission of information relating to entities and/or individuals subject to restrictive measures imposed by these sanctions.
US Sanctions: A Consideration for Licence Holders
In addition to EU sanctions, the United States has also imposed sanctions on several countries, individuals, and entities. While not binding in Malta, Licence Holders are encouraged to take US sanctions into consideration when conducting business activities due to their wide-ranging applicability and potential serious implications on business activities.
Seeking Professional Advice
The MFSA urges all Licence Holders and interested persons to consult the appropriate Sanctions Monitoring Board, United Nations, and EU websites for complete and up-to-date information and to seek professional advice as may be necessary to ensure compliance with international sanctions.