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Banks’ Responsibilities in Preventing Financial Crime in Malta
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Malta has a long history of implementing international sanctions aimed at preventing financial crime. These sanctions, issued by the United Nations Security Council and the European Union, are designed to target specific individuals, companies, or entities involved in illegal activities.
The National Interest (Enabling Powers) Act
According to the National Interest (Enabling Powers) Act, these sanctions take effect immediately and directly apply to Malta. The act also provides for the establishment of a Sanctions Monitoring Board, which is responsible for monitoring the implementation and operation of sanctions legislation in Malta.
Malta’s Financial Services Sector
Malta’s financial services sector plays a crucial role in preventing financial crime. Banks and other financial institutions are required to comply with international sanctions and take all necessary steps to freeze funds, assets, and economic resources belonging to designated individuals or entities.
Compliance Requirements
Monitoring Business Relationships
The Malta Financial Services Authority (MFSA) requires its licence holders to exercise caution and vigilance when conducting business activities. Licence holders must monitor their business relationships, verify records, and identify any funds or assets connected to sanctioned individuals or entities.
Reporting Requirements
In addition, the MFSA has issued guidelines for reporting requirements related to Council Regulations (EU) No 267/2012 on Iran and other sanctions imposed by the European Union. The authority also encourages licence holders and the public to take into account US sanctions when conducting business activities.
Sanctions Monitoring Board
The Sanctions Monitoring Board is responsible for providing information on international sanctions and ensuring compliance with these regulations. Licence holders are urged to consult the board’s website and seek professional advice to ensure that they do not support or become involved in illegal activities.
Conclusion
In conclusion, Malta’s financial services sector plays a critical role in preventing financial crime by complying with international sanctions. Banks and other financial institutions must take all necessary steps to freeze funds, assets, and economic resources belonging to designated individuals or entities. The MFSA and the Sanctions Monitoring Board are working together to ensure that licence holders comply with these regulations and prevent financial crime in Malta.
- Take immediate action to comply with international sanctions
- Freeze funds, assets, and economic resources belonging to designated individuals or entities
- Monitor business relationships and verify records
- Report any suspicious activity to the MFSA
- Consult the Sanctions Monitoring Board’s website for guidance
- Seek professional advice to ensure compliance with regulations