AML in Malta: Understanding International Sanctions
International sanctions, also known as restrictive measures, have been imposed by various countries and international organizations to address global concerns such as terrorism, weapons proliferation, and human rights violations. These sanctions may target specific individuals, companies, or entities involved in these activities.
Implementation of International Sanctions in Malta
In Malta, the implementation of international sanctions falls under the National Interest (Enabling Powers) Act. The Act provides for the direct applicability of United Nations Security Council Resolutions and EU Council Regulations, while also allowing for national regulations to be enacted. The Maltese government has implemented measures to ensure compliance with these sanctions, including requirements for financial institutions to report any transactions or activities related to designated individuals or entities.
Guidelines for MFSA Licence Holders
The Malta Financial Services Authority (MFSA) has issued guidelines for MFSA Licence Holders, requiring them to take note of all international sanctions and exercise caution in their business dealings. Licence Holders must:
- Verify their records on an ongoing basis
- Identify and freeze any funds or assets related to sanctioned individuals or entities
- Report their findings to the Sanctions Monitoring Board and the MFSA
Reporting Requirements
The MFSA has informed Licence Holders of reporting requirements under Council Regulation (EU) No 267/2012 concerning restrictive measures against Iran and other relevant regulations. The Authority encourages all financial institutions and individuals to take these sanctions into consideration when conducting business activities, as failure to comply can result in severe consequences.
US Sanctions
The US has also imposed sanctions on certain countries, individuals, and entities through its own legislation. While these sanctions may not be directly applicable to Malta, the MFSA advises Licence Holders to take them into account when conducting international business activities, as non-compliance can have significant financial implications.
Seeking Professional Advice
For further information on international sanctions, the public is advised to consult the websites of the Sanctions Monitoring Board, the United Nations, and the European Union. The MFSA also encourages individuals to seek professional advice to ensure compliance with these sanctions.
Summary: AML in Malta
AML (Anti-Money Laundering) in Malta refers to the country’s efforts to prevent and detect money laundering and terrorist financing activities through the implementation of international sanctions. These measures aim to protect the Maltese financial system from being exploited for illegal purposes and to maintain the integrity of the economy.