MALTAS BANK COMPLIANCE PROCEDURES IN THE SPOTLIGHT
Introduction
International sanctions have been a topic of discussion globally for many years. These restrictions, imposed by countries such as the United States, European Union, and United Nations, aim to curb activities deemed undesirable or threatening.
In Malta, these international sanctions are implemented through the National Interest (Enabling Powers) Act. The Act enables the immediate application of UN Security Council Resolutions and EU Council Regulations regarding restrictive measures. This means that any breaches of such sanctions are considered a criminal offense in Malta.
The Sanctions Monitoring Board
The Sanctions Monitoring Board, established under the National Interest (Enabling Powers) Act, plays a crucial role in monitoring the implementation and operation of sanctions legislation in Malta. The Board’s functions include:
- Verifying information on designated individuals and entities
- Identifying and freezing funds related to sanctioned parties
- Reporting findings to the MFSA and relevant authorities
MFSA Licence Holders Obligations
Malta Financial Services Authority (MFSA) Licence Holders have a legal obligation to comply with international sanctions. This includes:
- Monitoring business relationships for any connections to designated individuals or entities
- Identifying and freezing funds related to sanctioned parties
- Reporting findings to the Sanctions Monitoring Board and MFSA
Reporting Obligations
MFSA Licence Holders are required to report information related to sanctioned entities and/or individuals. This includes:
- Council Regulation (EU) No 267/2012, concerning restrictive measures against Iran
- Council Regulations (EU) 208/2014 (Ukraine), 101/2011 (Tunisia), and 270/2011 (Egypt)
US Sanctions
Unilateral US sanctions also apply to certain countries, individuals, and entities. These sanctions can have significant implications for business activities.
MFSA Licence Holders and the public are encouraged to take US sanctions into consideration when conducting business activities.
The Sanctions Monitoring Board is the Competent Authority for sanctions-related matters. Information on international sanctions is available through their website.
Conclusion
International sanctions play a crucial role in maintaining global security and stability. MFSA Licence Holders have a legal obligation to comply with these restrictions, and failure to do so can result in severe consequences. It is essential to stay informed about the latest developments and changes to ensure compliance with international sanctions regulations.