Financial Crime World

Malta Implements Anti-Money Laundering and Combating the Financing of Terrorism Regulations

International Sanctions: A Growing Concern

International sanctions have been imposed by the United Nations Security Council and the European Union on various countries, individuals, and entities. These sanctions aim to achieve specific goals, including:

  • Forcing compliance with international law
  • Containing threats to regional or global peace
  • Condemning the actions or policies of certain governments

Sanctions Implementation in Malta

In Malta, sanctions are implemented through the National Interest (Enabling Powers) Act. This Act provides for the direct applicability and enforceability of United Nations Security Council Resolutions and EU Council and Commission Regulations. The Act also empowers the Sanctions Monitoring Board to monitor the implementation and operation of sanctions legislation in Malta.

Financial Sanctions: A Key Focus

Financial sanctions are particularly relevant to the financial services sector, requiring MFSA Licence Holders to:

  • Take note of all international sanctions
  • Exercise caution to ensure they do not support activities, individuals, or entities subject to sanctions

As a legal obligation, Licence Holders must comply with international sanctions and report their findings to the Sanctions Monitoring Board and the Malta Financial Services Authority.

Reporting Obligations

MFSA Licence Holders are also required to report in terms of:

  • Council Regulation (EU) No 267/2012 (Iran)
  • Council Regulations (EU) 208/2014 (Ukraine), 101/2011 (Tunisia), and 270/201 (Egypt)
  • US sanctions

These measures have significant implications on business operations, making it essential for MFSA Licence Holders to take them into consideration when conducting business activities.

Support from the Sanctions Monitoring Board and the Malta Financial Services Authority

The Sanctions Monitoring Board is the Competent Authority for sanctions-related matters, providing information and resources on international sanctions through its website. The Malta Financial Services Authority aims to assist Licence Holders and other interested persons in being aware of and complying with international sanctions by:

  • Providing guidance
  • Urging them to seek professional advice as necessary

By staying informed and compliant with international sanctions, MFSA Licence Holders can ensure the integrity of their business operations and contribute to global efforts to combat money laundering and the financing of terrorism.