Maltese Companies Warned of Sanctions Implications in Libya: Freeze Assets of Designated Individuals and Entities

The Maltese Registrar of Companies is issuing a reminder to directors and company secretaries of Maltese companies regarding the United Nations (UN) sanctions against the Libyan Arab Jamahiriya and the restrictions imposed on certain individuals and entities following the situation in Libya.

Overview of Maltese Regulations

The Maltese regulations, outlined in Legal Notice 69 of 2011, EU Council Regulations 204/2011, and 233/2011, are based on UN Security Council Resolution 1970/2011 and include:

An arms embargo against Libya
A travel ban for some individuals
An asset freeze on the funds, financial assets, and economic resources of designated individuals and entities

Impact on Maltese Entities

These sanctions apply not only to financial institutions but to any person, company, or entity, including legal and accounting professionals and individual citizens, who may possess or control assets related to the sanctions.

Consequences of Violating Regulations

Violation of these regulations is a criminal offense, punishable by fines and/or imprisonment.

Reporting Designated Individuals and Entities

Designated individuals and entities must be notified immediately upon identification and freezing in writing to the Sanctions Monitoring Board at the Ministry of Foreign Affairs. You can also use email@gov.mt for reporting.

Freezing of Assets

Maltese companies are required to freeze any assets, such as shares, bonds, debt instruments, and securities belonging to the designated individuals and entities.

Prohibition of Transactions

Transactions, including asset disposals or liquidations, approvals, or payments to these entities, are strictly prohibited.

Staying Informed and Taking Caution

Stakeholders must stay informed about any new or additional sanctions and act with caution and vigilance. Seek legal and professional advice to ensure full compliance and avoid unintended support for individuals or entities subject to these sanctions.

MFSA Reference

MFSA Ref: 16-2011