Financial Crime World

Malta’s Financial Crime Prevention: Best Practices for Compliance with International Sanctions

Malta has implemented a robust system to prevent financial crime by enforcing international sanctions, which are primarily issued by the United Nations Security Council and the European Union. These sanctions aim to address various global threats, including:

  • Terrorism
  • Weapons proliferation
  • Human rights violations
  • Political instability

The National Interest (Enabling Powers) Act

The National Interest (Enabling Powers) Act empowers the Sanctions Monitoring Board to monitor the implementation of sanctions in Malta. The board is responsible for:

  • Proposing designations
  • Verifying business relationships
  • Identifying and freezing funds linked to sanctioned individuals or entities

Malta’s Financial Services Authority (MFSA)

The MFSA requires licence holders to exercise caution and vigilance when conducting business activities that may be connected to designated individuals or entities. Licence holders must:

  • Take all necessary steps to implement sanctions immediately
  • Report their findings to the Sanctions Monitoring Board and MFSA

Reporting Obligations

In addition, the MFSA informs credit institutions of reporting obligations related to Council Regulations (EU) No 267/2012, concerning restrictive measures against Iran, and other regulations. The collation and transmission of this information is coordinated by the Sanctions Monitoring Board.

US Sanctions

The US has also imposed sanctions on various countries, individuals, and entities, which are not part of United Nations or European Union sanctions. MFSA licence holders and the public are encouraged to take these sanctions into consideration when conducting business activities, as they may have significant financial implications.

Best Practices for Compliance

To ensure compliance with international sanctions, MFSA licence holders and other interested persons are urged to:

  • Consult the Sanctions Monitoring Board’s website for complete and up-to-date information
  • Seek professional advice as necessary

By adhering to best practices in financial crime prevention, Malta aims to maintain its reputation as a safe and secure financial hub.