AML in Malta

In the effort to combat financial crimes, Malta has implemented the “Prevention of Money Laundering Act (PMLA).” This legislation led to the establishment of the Financial Intelligence Analysis Unit (FIAU) within the country. The FIAU is a national institution in Malta tasked with preventing money laundering and the financing of terrorism. Its responsibilities encompass the collection and examination of information related to financial crimes. Should the FIAU analyze suspicious transaction reports and identify potentially illicit activities, appropriate measures are undertaken.

Functioning as a regulatory and supervisory body for financial institutions, the Malta Financial Services Authority (MFSA) plays a significant role. Its mandate involves overseeing banks, credit institutions, electronic money entities, investment firms, and all other financial establishments, with the ultimate goal of maintaining economic stability. To address money laundering and terrorist financing concerns, the AML / CFT Co-ordination Committee was established. This committee works to prevent such activities.

The MFSA additionally issues AML regulations and guidelines that complement the legal framework in Malta. Collaboratively, the MFSA and FIAU conduct audits pertaining to AML and CFT practices within the country.

The AML regulations in Malta have been formulated to align with both FATF and European Union directives. Financial entities operating within Malta are mandated to adhere to these local AML regulations. Notably, the gaming sector within Malta is also bound by newly introduced AML obligations. Within the Maltese regulatory framework, organizations under regulation are obligated to appoint a Money Laundering Reporting Officer. Moreover, these entities are required to satisfy Customer Due Diligence criteria and promptly notify authorized entities about transactions that raise suspicions.