Financial Crime World

Malta Tightens Belts on Anti-Money Laundering Regulations

As the global fight against money laundering and terrorist financing continues to intensify, Malta has strengthened its legislative framework to stay ahead of evolving criminal threats.

A Comprehensive Approach to Anti-Money Laundering

At the heart of Malta’s anti-money laundering (AML) regime are several key pieces of legislation, including:

  • Prevention of Money Laundering Act
  • Prevention of Money Laundering and Funding of Terrorism Regulations
  • Criminal Code

These laws and regulations aim to prevent and combat illicit financial activities. The National Coordinating Committee on Combating Money Laundering and Funding of Terrorism has been established to oversee compliance with these regulations.

Harmonization with EU Directives

Malta has implemented several EU directives aimed at harmonizing AML standards across member states, including:

  • Fourth Anti-Money Laundering Directive (applicable from June 2017)
  • Fifth Anti-Money Laundering Directive (entered into force on June 20, 2018)
  • Sixth Anti-Money Laundering Directive (entered into force on December 3, 2020)

These directives provide a framework for Malta to implement robust AML measures and ensure compliance with international standards.

International Standards

The EU’s Financial Action Task Force (FATF) Recommendations provide international standards for combating money laundering. Malta has incorporated these recommendations into its national legislation, requiring financial institutions to implement:

  • Customer due diligence
  • Transaction monitoring
  • Reporting of suspicious activities

Regulations Aimed at Preventing the Use of Cash

Malta’s banking sector is also subject to regulations aimed at preventing the use of cash for illegal activities, including:

  • Centralised Bank Account Register Regulations
  • Use of Cash (Restriction) Regulations

These regulations aim to prevent the misuse of cash and ensure that the banking sector remains a safe and secure environment for both domestic and international transactions.

Commitment to Staying Ahead of the Curve

In response to evolving threats, Malta has demonstrated its commitment to staying ahead of the curve in AML compliance. The country’s financial authorities have implemented measures to strengthen oversight and enforcement, ensuring that the banking sector remains a safe and secure environment for both domestic and international transactions.

By implementing these regulations and measures, Malta is reaffirming its position as a trusted and stable financial hub, committed to combating money laundering and terrorist financing.