Malta’s Financial Crime Prevention Measures: A Comprehensive Overview
Malta has implemented a range of measures to prevent financial crime, including international sanctions imposed by the United Nations Security Council, the European Union, and the United States.
International Sanctions
The National Interest (Enabling Powers) Act provides for the implementation of UN Security Council Resolutions and EU Council Regulations concerning restrictive measures. These measures include:
- Diplomatic sanctions
- Economic sanctions
- Military sanctions aimed at containing threats to regional or global peace
- Combating terrorism
- Imposing measures against countries and entities that pose a risk to international security
Compliance Requirements
The Malta Financial Services Authority (MFSA) requires its licence holders to take note of all international sanctions and exercise caution and vigilance in conducting business activities. Licence holders are legally obligated to comply with international sanctions and must report any findings of their verifications to the Sanctions Monitoring Board and the MFSA.
Identification and Reporting
Licence holders are required to:
- Identify and freeze funds, financial assets, and economic resources belonging to designated individuals or entities subject to sanctions
- Report any action taken to the Sanctions Monitoring Board and the MFSA
Updates from the MFSA
The MFSA has informed all credit institutions of developments related to reporting in terms of Council Regulation (EU) No 267/2012 concerning restrictive measures against Iran and Council Regulations (EU) 208/2014, 101/2011, and 270/2011 concerning restrictive measures against Ukraine, Tunisia, and Egypt.
Sanctions Monitoring Board
The Sanctions Monitoring Board is responsible for the collation and transmission of information relating to entities and/or individuals subject to restrictive measures imposed by sanctions. The board’s website provides information on international sanctions for licence holders and other interested persons.
US Sanctions
In addition to UN and EU sanctions, the United States has also imposed sanctions against several countries, individuals, and entities. MFSA licence holders are encouraged to take US sanctions into consideration when conducting business activities in view of their wide-ranging applicability and potential significant financial implications.
Conclusion
The information provided by the MFSA aims to assist licence holders and other interested persons to be aware of and comply with international sanctions. Licence holders and interested persons are urged to consult the appropriate Sanctions Monitoring Board, UN, and EU websites for complete and up-to-date information and seek professional advice as necessary to ensure compliance with sanctions regulations.