Financial Crime World

Malta Toughens Stance on Anti-Money Laundering Regulations

Strengthening its Anti-Money Laundering Regime

In a move aimed at combating international sanctions and preventing financial crimes, Malta has introduced new regulations to strengthen its anti-money laundering regime.

Key Provisions of the National Interest (Enabling Powers) Act

  • The Act provides for the implementation of United Nations Security Council Resolutions and European Union Council and Commission Regulations on restrictive measures in Malta.
  • It empowers the Sanctions Monitoring Board to monitor the operation of sanctions legislation and ensure compliance by all relevant entities.

Requirements for MFSA Licence Holders

  • Exercise caution and vigilance when conducting business activities that may be connected or related to designated individuals and entities subject to sanctions or other restrictive measures.
  • Report findings to the Sanctions Monitoring Board and the Malta Financial Services Authority (MFSA) and inform the latter of any action taken.
  • Take note of all international sanctions issued from time to time, including new designations of individuals and entities, and verify records on an ongoing basis for any information or transactions known or suspected to be connected or related in any manner whatsoever with designated individuals and entities.

Reporting Obligations

  • The regulations provide for reporting obligations in terms of Council Regulation (EU) No 267/2012 concerning restrictive measures against Iran, as well as Council Regulations (EU) 208/2014 (Ukraine), 101/2011 (Tunisia), and 270/2011 (Egypt).

A Major Step Forward in Combating Money Laundering and Terrorist Financing

The introduction of these regulations is seen as a major step forward in Malta’s efforts to combat money laundering and terrorist financing. The country has long been committed to implementing international standards on anti-money laundering and combating the financing of terrorism.

Future Effectiveness of the Regulations

It remains to be seen how effective these new regulations will be in preventing financial crimes and ensuring compliance by all relevant entities. However, it is clear that Malta is taking a firm stance against anti-money laundering and is committed to protecting its financial system from criminal activity.