Reporting Suspicious Transactions in Malta: A Guide for Subject Persons

In light of recent changes to the Prevention of Money Laundering and Funding of Terrorism Regulations, subject persons in Malta are now required to report any suspicious transactions promptly without delay.

Changes to Reporting Obligations

The previous five-day working period has been abolished, and a new obligation has taken its place. According to Regulation 15(3) of the PMLFTRs, subject persons must report any transaction that gives rise to knowledge or suspicion of money laundering (ML) or funding of terrorism (FT).

Reporting Suspicious Transactions

Employees of subject persons are required to treat such matters with utmost urgency and report them to the Money Laundering Reporting Officer (MLRO) without delay.

Internal Reporting to the MLRO

When an employee becomes aware of any information or matter that gives rise to knowledge or suspicion of ML/FT, they must report it to the MLRO immediately. The MLRO’s role is not to conduct investigative or analytical work but rather to determine whether there is knowledge or suspicion of ML/FT which ought to be flagged to the Financial Intelligence Analysis Unit (FIAU) for analysis.

Priority Cases

Priority should be given to cases related to FT, those involving substantial amounts of funds, pending transactions, or cases involving Politically Exposed Persons (PEPs). The MLRO should also ensure that they are supported by adequate human and technical resources to make such assessments as expeditiously as possible.

Submission of the Suspicious Transaction Report

The Implementing Procedures require the MLRO to submit any disclosures to the FIAU promptly. This means that a suspicious transaction report should be submitted on the same day when knowledge or suspicion of ML/FT is considered to subsist. However, in cases where the compilation and submission of the STR within the same day proves challenging due to the extensive volume and complexity of information/documentation, the MLRO shall ensure that the STR is submitted within the shortest time possible.

Documentation and Record-Keeping

In such situations, it is highly advisable that the MLRO records the process undertaken by him or his team from the moment of receipt of the internal report leading up to the filing of the STR in order to substantiate the timing of the relative submission.