Malta Tightens Financial Crime Prevention Measures to Combat Money Laundering and Terrorism Funding
Strengthening Stance Against Financial Crimes
In a bid to bolster its efforts against financial crimes, Malta has criminalized money laundering through the Prevention of Money Laundering Act (Cap. 373). This legislation adopts an “all crimes” approach, extending to drug-related money laundering under the Dangerous Drugs Ordinance (Cap. 101) and Medical and Kindred Professions Ordinance (Cap. 31).
Establishing the Financial Intelligence Analysis Unit (FIAU)
The Prevention of Money Laundering Act establishes the Financial Intelligence Analysis Unit (FIAU), a crucial entity in combating financial crimes. The act and regulations are supplemented by the Implementing Procedures issued by the FIAU, providing an interpretation of the regulations to guide and assist subject persons in fulfilling their obligations.
Binding Measures for Subject Persons
These procedures are binding on subject persons, failure to comply with which may result in administrative penalties. The measures aim to ensure effective implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) regulations, thereby protecting Malta’s financial system from illicit activities.
Key Objectives
- Combat money laundering and terrorism funding
- Protect Malta’s financial system from illicit activities
- Ensure effective implementation of AML/CFT regulations
- Provide guidance and assistance to subject persons in fulfilling their obligations