Reporting Suspicious Transactions in Malta: A Guide for Subject Persons

Introduction

In recent times, reporting suspicious transactions has become a more urgent task in Malta following changes to the Prevention of Money Laundering and Funding of Terrorism Regulations. Gone are the days when subject persons had five working days to report such transactions; now, prompt submission is required.

Roles and Responsibilities

Subject persons must ensure that their employees are aware of their roles in reporting suspicious transactions to the Money Laundering Reporting Officer (MLRO). When an employee becomes aware of information that may indicate money laundering or funding of terrorism, they must report the matter to the MLRO without delay.

Internal Reporting

According to the FIAU Implementing Procedures, internal reports should be made by not later than the next working day. Employees should also factor in discussions with their superiors within this timeframe, ensuring that the internal report is raised with the MLRO promptly.

• Automated transaction monitoring systems may alert subject persons to suspicious transactions, which must be analyzed further and reported to the MLRO without delay.
• Subject persons are responsible for updating their internal procedures and educating staff on these new timeframes.

Consideration of Reports

Upon receiving an internal report, the MLRO must consider the information with urgency and determine whether it gives rise to knowledge or suspicion of money laundering or funding of terrorism. If so, a Suspicious Transaction Report (STR) should be submitted to the FIAU promptly. If additional information is needed, the MLRO must collect and consider it without delay.

Guidance on Timeliness

The Implementing Procedures emphasize the importance of acting “without delay” and provide guidance on what constitutes an unreasonable delay. The FIAU recommends that subject persons prioritize reports related to:

• Funding of terrorism
• Substantial amounts of funds
• Pending transactions
• Cases involving Politically Exposed Persons (PEPs)

Submission of STRs

When submitting a STR, the MLRO should do so as soon as possible. In complex cases, it may take a shorter time frame. In these instances, the MLRO must record the process undertaken to substantiate the timing of the submission.

Conclusion

By understanding and complying with these new requirements, subject persons can help prevent money laundering and funding of terrorism in Malta. It is essential for subject persons to prioritize prompt reporting and maintain accurate records to ensure compliance with regulations.