PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 1 SUBSIDIARY LEGISLATION 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM REGULATIONS 1st January, 2018 LEGAL NOTICE 372

2017,as amended by Legal Notice 430

2018, 77

2019 and 26 and 214

2020,199 and 313

2021, 379

2024 and 82

2026 *. 1.

these regulations is the Prevention

Money Laundering and Funding

Terrorism Regulations. Title and scope.

these regulations is to implement the provisions

Directive (EU) 2015/849

the European Parliament and

the Council

20 May 2015 on the prevention

the use

the financial system for the purposes

money laundering or terrorist financing. 2.

Money Laundering Act; "anti-money laundering and counter-funding

terrorism obligations" means the obligations imposed on subject persons and arising from the Act, these regulations or under any binding procedures, guidance, instructions, directives, orders or directions issued under the Act or these regulations; "beneficial owner" means any natural person or persons who ultimately own or control the customer and, or the natural person or persons on whose behalf a transaction or activity is being conducted, and: (a) in the case

a body corporate or a body

persons, the beneficial owner shall consist

any natural person or persons who ultimately own or control that body corporate or body

persons through direct or indirect ownership

twenty-five per centum (25%) plus one

the shares or more than twenty-five per centum (25%)

the voting rights or an ownership interest

more than twenty-five per centum (25%) in that body corporate or body

persons, including through bearer share holdings, or through control via other means, other than a company that is listed on a regulated market which is subject to disclosure requirements consistent with European Union law or equivalent international standards which ensure adequate transparency

ownership information: *Vide Regulation 6

Legal Notice 82

2026. Interpretation and application. Amended by: L.N. 430

2018. L.N. 26

2020; L.N. 199

2021; L.N. 379

2024; L.N. 82

2026. Cap. 373. 2 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM Provided that a shareholding

twenty-five per centum (25%) plus one

an ownership interest or voting rights

more than twenty-five per centum (25%) in the customer shall be an indication

direct ownership when held directly by a natural person, and

indirect ownership when held by one or more bodies corporate or body

persons or through a trust or a similar legal arrangement, or a combination thereof: Provided further that if, after having exhausted all possible means and provided there are no grounds

suspicion, no beneficial owner in terms

this paragraph has been identified, subject persons shall consider the natural person or persons who hold the position

senior managing

ficial or

ficials to be the beneficial owners, and shall keep a record

the actions taken and any difficulties encountered to determine who the beneficial owner is in terms

this paragraph. (b) consist

: in the case

trusts the beneficial owner shall (

1. i)the settlor or settlors; (
2. ii)the trustee or trustees; (iii) applicable; the protector or protectors, (
3. iv)the beneficiaries or beneficiaries as may be applicable; and the where class

(v) any other natural person exercising ultimate control over the trust by means

direct or indirect ownership or by other means; (c) in the case

legal entities such as foundations, and legal arrangements similar to trusts, the beneficial owner shall consist

the natural person or persons holding equivalent or similar positions to those referred to in paragraph (b); ''business relationship'' means a business, professional or commercial relationship between two or more persons, at least one

which is acting in the course

either relevant financial business or relevant activity, and which has, or is expected to have at the time when the contact is established, an element

duration;  Cap. 583 ''casino'' means any premises where gaming services are made available to the public by a gaming licensee and in relation to which a concession in terms

article 11

the Gaming Act has been granted, and "casino licensee" in these regulations shall be construed PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 accordingly; ''collective investment scheme'', and ''units'' have the same meanings as are assigned to these terms respectively in the Investment Services Act;   Cap. 370 ''company'' has the same meaning as is assigned to the term in the Companies Act;  Cap. 386 "competent authority" means: (a) any supervisory authority; (b) the Comptroller

Customs when carrying out duties under any regulation that may be issued or are in force from time to time relating to the cross-border movement

cash and other financial instruments; (

1. c)the Commissioner for Tax and Customs; (
2. d)the Organisations; Commissioner for Voluntary (
3. e)the Asset Recovery Bureau; (
4. f)the Security Service; (
5. g)the Sanctions Monitoring Board; and (
6. h)Directorate; the Internal Audit and Investigations "correspondent relationship" means: (
7. a)the provision

banking services by one bank as the correspondent to another bank as the respondent, including providing a current or other liability account and related services, such as cash management, international funds transfers, cheque clearing, payable-through accounts and foreign exchange services; (

1. b)the relationship between and among institutions carrying out relevant financial business and activities equivalent thereto, including where similar services to those under paragraph (
2. a)are provided by a correspondent institution to a respondent institution, and including relationships established for securities transactions or funds transfers or relationships established for transactions in cryptoassets or transfers

crypto-assets; "customer" means a legal or natural person who seeks to form, or who has formed a business relationship, or seeks to carry out an 3 4 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 occasional transaction with a person who is acting in the course

either relevant financial business or relevant activity; "crypto-asset" means a crypto-asset as defined in point

Article 3

Regulation (EU) 2023/1114, except when falling within the categories listed in Article 2

the said Regulation or when it otherwise qualifies as banknotes, coins, scriptural money or electronic money; "crypto-asset service provider" means a crypto-asset service provider as defined in point

Article 3

Regulation (EU) 2023/1114, when performing one or more crypto-asset services as defined in point

Article 3

t h e s ai d Regulation, with the exception

providing advice on crypto-assets as referred to in point

Article 3

the said Regulation and except when falling within the categories listed in Article 2

the said Regulation: Provided that any person who is providing any

the crypto-asset services referred to above without the authorisation required in accordance with Regulation (EU) 2023/1114, when it should have been so authorised, shall equally be considered as a crypto-asset service provider for the purposes

these regulations:    Cap. 590. Provided further that any person who on the 30th December 2024 is licensed under the Virtual Financial Assets Act to provide one or more

the services listed in the Second Schedule to the said Act and benefits from any transitory period allowed for authorisation to be granted under Regulation (EU) 2023/1114, shall also be considered as a crypto-asset service provider for the duration

the said transitory period;  Cap. 376 "electronic money" has the same meaning as is assigned to the term in the Financial Institutions Act, including electronic money tokens, but excludes monetary value that: (a) is stored on instruments that can be used to acquire goods or services only in the premises used by the issuer or under a commercial agreement with the issuer either within a limited network

service providers or for a limited range

goods or services; or (b) is used to make payment transactions executed by means

any telecommunication, digital or IT device, where the goods or services purchased are delivered to and are to be used through telecommunication, digital or IT device, provided that the telecommunication, digital or IT operator does not act only as an intermediary between the payment service user and the supplier

the goods PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 and services; "electronic money token" means a type

crypto-asset as defined in point

Article 3

Regulation (EU) 2023/1114; ''Financial Intelligence Analysis Unit'' has the same meaning as is assigned to the term in the Act; ''funding

terrorism'' means the conduct described in articles 328F and 328I both inclusive,

the Criminal Code;  Cap. 9 "gaming licensee" means any person licensedin terms

the Gaming Authorisation Regulations to provide a gaming service;  "gaming service" means making a licensable game which is a game

chance as defined in the Gaming Act, available for participation by players, and, without prejudice to the preceding phrase, "licensable game" shall have the same meaning as is assigned to it in the Gaming Definitions Regulations and the subsidiary legislation existing thereunder;  Cap. 583.      S.L. 583.04. ''group'' has the same meaning as is assigned to the term in the Companies Act; Cap. 386 "long term insurance business" means the business

insurance

any

the classes specified in the Second Schedule to the Insurance Business Act;    Cap. 403 "management body" means the board

directors or, where there is no board

directors, the body having equivalent powers and functions; ''non-reputable jurisdiction'' means any jurisdiction having deficiencies in its national anti-money laundering and counter funding

terrorism regime or having inappropriate and ineffective measures for the prevention

money laundering and the funding

terrorism, taking into account any accreditation, declaration, public statement or report issued by an international organisation which lays down internationally accepted standards for the prevention

money laundering and for combating the funding

terrorism or which monitors adherence thereto, or is a jurisdiction identified by the European Commission in accordance with Article 9

Directive (EU) 2015/849; ''occasional transaction'' means any transaction or service carried out or provided by a subject person for his customer, other than a transaction or service carried out or provided within a business relationship, and includes the following: (a) a transaction amounting to fifteen thousand euro (€15,000) or more, carried out in a single operation or in  S.L. 583.05. 5 6 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 several operations which appear to be linked; (b) a transfer

funds as defined under Regulation (EU) 2023/1113

the European Parliament and

the Council

31 May 2023 on information accompanying transfers

funds and certain crypto-assets and amending Directive (EU) 2015/849 (recast) which exceeds one thousand euro (€1,000) in a single operation or in several operations which appear to be linked; (

1. c)a transaction in cash amounting to ten thousand euro (€10,000) or more, carried out by a natural or legal person trading in goods in a single operation or in several operations which appear to be linked; (
2. d)a transaction amounting to two thousand euro (€2,000) or more, carried out by gaming or casino licensees in a single operation or in several operations which appear to be linked; (
3. e)a transaction amounting to ten thousand euro (€10,000) or more, carried out by a natural or legal person trading in works

art or acting as intermediary in the sale

works

art, in a single operation or in several operations which appear to be linked; (f) a transaction, independently

the amount involved, carried out by a subject person whose activities are those referred to in paragraphs (l) and (n)

the definition "relevant financial business", including when these activities are carried out as established in paragraph (o)

the aforementioned definition; (g) Repealed by Legal Notice 379

2024; (h) the provision

material aid, assistance or advice on tax matters; (i) the formation

a company, trust, foundation or a similar structure; (j) the provision, by real estate agents,

intermediation services in relation to the letting

immovable property where the monthly rent amounts to ten thousand euro (€10,000) or more; and (k) the storage, by free ports,

works

art the value

which is equal to or exceeds ten thousand euro (€10,000). "politically exposed persons" means natural persons who are or PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 have been entrusted with prominent public functions in or outside Malta, other than middle ranking or more junior

ficials. For the purposes

this definition the term "natural persons who are or have been entrusted with prominent public functions" means: (a) Heads

State, Heads

Government, Ministers, Deputy or Assistant Ministers, and Parliamentary Secretaries; (b) bodies; Members

Parliament or similar legislative (c) parties; Members

the governing bodies

political (d) Members

superior, supreme, and constitutional courts or

other high-level judicial bodies whose decisions are not subject to further appeal, except in exceptional circumstances; (e) Members

courts

auditors or

the boards

central banks; (f) Ambassadors, charges d’affaires and high ranking

ficers in the armed forces; (g) Members

the administrative, management or supervisory boards

State-owned enterprises; (

1. h)Anyone exercising a function equivalent to those set out in paragraphs (
2. a)to (
3. f)within an institution

the European Union or any other international body; and (i) Anyone entrusted with a prominent public function listed in an order issued by the Minister in terms

article 12

the Act from time to time, or included in any other equivalent list issued by any other jurisdiction or international organisation. "real estate agent" means any person who is licensed or required to be licensed as a property broker or as a real estate agent under the Property Market Agency Act:   Cap. 644. Provided that where two

these regulations the real estate agent shall be deemed to be the partnership;     Cap. 644. "Regulation (EU) 2023/1114" means Regulation (EU) 2023/1114 7 8 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01

the European Parliament and

the Council

31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/ 2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937; ''relevant activity'' means the activity

the following legal or natural persons when acting in the exercise

their professional activities: (

1. a)auditors, external accountants and tax advisors, including when acting as provided for in paragraph (
2. c)and any other person that undertakes to provide, directly, or through other persons to whom he is related, material aid, assistance or advice on tax matters; (
3. b)real estate agents , including when acting as intermediaries in relation to the letting

immovable property where the monthly rent amounts to ten thousand euro (€10,000) or more; (c) notaries and other independent legal professionals when they participate, whether by acting on behalf

and for their client in any financial or real estate transaction or by assisting in the planning or carrying out

transactions for their clients concerning the – (i) buying and selling

real property or business entities;    Cap. 370 (ii) managing

client money, securities or other assets, unless the activity is undertaken under a licence issued under the provisions

the Investment Services Act; (iii) opening or management

bank, savings or securities accounts; (iv) organisation

contributions necessary for the creation, operation or management

companies; (v) creation, operation or management

companies, trusts, foundations or similar structures, or when acting as a trust or company service provider; (

1. d) Cap. 330 trust and company service providers; (
2. e)nominee companies holding a warrant under the Malta Financial Services Authority Act and acting in relation to dissolved companies registered under the said Act; (
3. f)casino licensees; PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM (

1. g)[ S.L. 373.01 gaming licensees; (
2. h)any natural or legal person trading in goods, but only where a transaction involves payment in cash in an amount equal to ten thousand euro (€10,000) or more whether the transaction is carried out in a single operation or in several operations which appear to be linked; (
3. i)any natural or legal person trading in works

art or acting as intermediary in the sale

works

art, including when this is carried out by art galleries, auctioneers and freeports, where the value

the transaction or a series

linked transactions amounts to ten thousand euro (€10,000) or more; and (j) free ports when storing works

art the value

which amounts to ten thousand euro (€10,000) or more, or when trading in works

art or acting as intermediaries in the sale

works

art as envisaged under paragraph (i); ''relevant financial business'' means – (a) any business

banking carried on by a person or institution who is for the time being licensed, or required to be licensed, under the provisions

the Banking Act;    Cap. 371 (b) any activity

a financial institution carried on by a person or institution who is for the time being licensed, or required to be licensed, under the provisions

the Financial Institutions Act;    Cap. 376 (c) any long term insurance business other than business

reinsurance carried on by a person or institution who is for the time being authorised, or required to be authorised, under the provisions

the Insurance Business Act;     Cap. 403 (d) any insurance intermediary activities carried out by an insurance intermediary or by a tied insurance intermediary related to long-term insurance business which person or institution is enrolled or required to be enrolled under the provisions

the Insurance Distribution Act, other than a natural person who is registered or enrolled and acts on behalf

a tied insurance intermediary or a person or institution enrolled as a tied insurance intermediary that does not collect premiums, or other amounts intended for the policyholder or the beneficiary;       Cap. 487 9 10 [ S.L. 373.01    S.L. 403.11     S.L. 386. 10    S.L. 386.13 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM (e) any long term insurance business other than business

reinsurance carried on by a person in accordance with the Insurance Business (Captive Insurance Undertakings and Captive Reinsurance Undertakings) Regulations, by a cell company in accordance with the provisions

the Companies Act (Cell Companies Carrying on Business

Insurance) Regulations or by an incorporated cell company and an incorporated cell in accordance with the provisions

the Companies Act (Incorporated Cell Companies Carrying on Business

Insurance) Regulations;    Cap. 370 (f) investment services carried on by a person or institution licensed or required to be licensed under the provisions

the Investment Services Act;    Cap. 370     S.L. 386.15 (g) administration services to collective investment schemes provided by a person or institution recognised or required to be recognised under the provisions

the Investment Services Act other than administration services provided by recognised incorporated cell companies in accordance with the Companies Act (Recognised Incorporated Cell Companies) Regulations;     Cap. 370 (h) a collective investment scheme marketing its units or shares, licensed, recognised or notified, or required to be licensed, recognised or notified, under the provisions

the Investment Services Act;          Cap. 514 (i) any activity other than that

a retirement scheme or a retirement fund, carried on in relation to a retirement scheme, by a person or institution licensed or required to be licensed under the provisions

the Retirement Pensions Act and for the purpose

this paragraph, ''retirement scheme'' and ''retirement fund'' shall have the same meaning as is assigned to them in the Retirement Pension Act;    Cap. 345 (j) any activity

a regulated market and that

a central securities depository authorised or required to be authorised under the provisions

the Financial Markets Act; (

1. k)safe custody services provided by any person or institution not covered under paragraph (
2. a)or (f);  (
3. l)the activity

a crypto-asset service provider;  (m) Repealed by Legal Notice 379

2024; Cap.

1.   Cap.
2. (n) the issue

electronic money tokens for

fer to the public as provided for under Title IV

Regulation (EU) 2023/1114; PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 (

1. o)any activity under paragraphs (
2. a)to (
3. n)carried out by branches established in Malta and whose head

fices are situated outside Malta "self-hosted address" means a self-hosted address as defined in point

Article 3

Regulation (EU) 2023/1113

the European Parliament and

the Council

31 May 2023 on information accompanying transfers

funds and certain crypto-assets and amending Directive (EU) 2015/849 (recast); "senior management" means an

ficer or employee with sufficient knowledge

the subject person's money laundering and terrorist financing risk exposure and sufficient seniority to take decisions affecting its risk exposure, and need not be a member

the management body; ''shell institution'' means an institution carrying out activities equivalent to relevant financial business, incorporated in a jurisdiction in which it has no physical presence, involving meaningful mind and management, and which is not affiliated with a regulated financial group; ''subject person'' means any natural or legal person, as well as any other body or association

persons, carrying out either relevant financial business or relevant activity; ''supervisory authority'' means – (a) the Central Bank

Malta; (

1. b)the Malta Financial Services Authority; (
2. c)the Malta Business Registry; (
3. d)the Malta Gaming Authority; (
4. e)the Accountancy Board;  Cap. 386 (
5. f)the Trade Licensing Unit limitedly to its licensing function in relation to dealers in precious metals and stones; and (
6. g)the Property Market Agency. ''terrorism'' means any act

terrorism as defined in article 328A

the Criminal Code;  Cap. 9 ''trust and company service provider'' means any natural or legal person who: (a) provides trustee or other fiduciary services, whether authorised or required to be authorised, in terms

the   Cap. 331 11 12 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 Trusts and Trustees Act, other than persons acting as trustees in terms

article 43A

the said Act;   Cap. 529 (

1. b)acts as a company service provider, whether registered or authorised, or required to be registered or authorised, in accordance with the Company Service Providers Act, including any natural or legal person referred to in paragraph (
2. a)acting as a company service provider, whether notified or required to be notified in a c c o r d a n c e w i t h the Company Service Providers Act; (
3. c)arranges, by way

business, for another person to act as a trustee

an express trust or a similar legal arrangement;      Cap. 345 (d) arranges, by way

business, for another person to act as a fiduciary shareholder for another person other than a company listed on regulated market that is subject to disclosure requirements in conformity with the Financial Markets Act or subject to equivalent international standards. "work

art" means an original, unique and tangible object

any kind or material that is created or executed by hand or a limited edition reproduction thereof, and which is considered to have an imaginative, expressive and aesthetic function, value or appeal, irrespective

artistic quality, and provided that the said criteria are met includes the following: (

1. a)paintings, plaques; drawings, etchings and decorative (
2. b)engravings, lithographs or other prints; (
3. c)works

sculpture or statuary; (

1. d)tapestries; (
2. e)photographs printed and signed by the photographer, including limited edition prints made from the exposure; and (
3. f)ceramic works.

sub-regulation

undertakings other than those referred to in this regulation and whose activities are particularly likely to be used for PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 13 the purposes

money laundering or the funding

terrorism, these regulations shall apply in full or in part as may be established by such extension in accordance with the provisions

the Act, and the Financial Intelligence Analysis Unit shall inform the European Commission accordingly.

fice situated in another Member (b) branch, are established in Malta in forms other than a to appoint a central contact point in Malta to ensure, on behalf

the appointing entity, compliance with these regulations and to facilitate the monitoring

such compliance, including by providing the Financial Intelligence Analysis Unit and supervisory authorities with information and documents upon request.

Directive (EU) 2015/849 and it shall provide the European Supervisory Authorities with any information which is necessary to carry out their duties under Directive (EU) 2015/849 and under Regulation (EU) No 1093/2010, Regulation (EU) No 1094/2010 and Regulation (EU) No 1095/ 2010. 3.

proven low risk

money laundering and funding

terrorism posed by the nature and, where appropriate, the scale

operations

such services.

sub-regulation

money laundering or funding

terrorism posed by such gaming services can no longer be considered as low.

this regulation Specific gaming services. 14 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM shall be communicated to the European Commission.

sub-regulation

distance communication. Relevant financial business on an occasional or very limited basis.  Amended by: L.N. 199

2021. 4.

money laundering or the funding

terrorism occurring, are not to be considered as subject persons for the purposes

these regulations: Provided that the Financial Intelligence Analysis Unit may not make any determination as is referred to hereabove in relation to a person who engages in the remittance and transfer

money.

reaching a determination under subregulation

the following criteria are met: (a) the total annual turnover

the financial activity does not exceed fifteen thousand euro (€15,000), and the Financial Intelligence Analysis Unit may establish different thresholds not exceeding this amount depending on the type

financial activity; (b) each transaction per customer does not exceed five hundred euro (€500) whether the transaction is carried out in a single operation or in several operations which appear to be linked, and the Financial Intelligence Analysis Unit may establish different thresholds not exceeding this amount depending on the type

financial activity; (c) the financial activity is not the main activity and in absolute terms does not exceed five per centum (5%)

the total turnover

the legal or natural person concerned; (

1. d)the financial activity is ancillary and directly related to the main activity; (
2. e)the main activity is not an activity falling within the definition "relevant financial business" or "relevant activity"; and (
3. f)the financial activity is provided only to the customers

the main activity and is not generally

fered to the public. PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 15

money laundering or the funding

terrorism for the purposes

sub-regulation

terrorism and the Financial Intelligence Analysis Unit shall not consider that financial activity as representing a low risk

money laundering or funding

terrorism if the information available suggests otherwise.

terrorism.

any determination made under sub-regulation

its business, to identify and assess the risks

money laundering and funding

terrorism that arise out

its activities or business, taking into account risk factors including those relating to customers, countries or geographical areas, products, services, transactions and delivery channels and shall furthermore take into consideration any national or supranational risk assessments relating to risks

money laundering and the funding

terrorism.

money laundering and the funding

terrorism inherent in any particular relevant activity or relevant financial business to be clear and understood, it may exempt subject persons carrying out such relevant activity or relevant financial business from the obligation to perform risk assessments under this regulation.

sub-regulation

2018; L.N. 26

2020. 16 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01

its business, which address the risks identified as a result

the risk assessment referred to in subregulation

making employees aware

– (i) the measures, policies, controls and procedures under the provisions

paragraph (

1. a)and any other relevant policies that are maintained by the subject person; and  Cap. 373.     Cap. 9 (
2. ii)the provisions

the Prevention

Money Laundering Act and

these regulations;

the Sub-Title IV A "

Acts

Terrorism, Funding

Terrorism and Ancillary

fences"

Title IX

Part II

Book First

the Criminal Code; and

data protection requirements; (c) appoint, where appropriate with regard to the nature and size

the business, an

ficer at management level whose duties shall include the monitoring

the day-to-day implementation

the measures, policies, controls and procedures adopted under this regulation; (d) implement, where appropriate with regard to the size and nature

the business, an independent audit function to test the internal measures, policies, controls and procedures; (e) provide employees from time to time with training in the recognition and handling

operations and transactions which may be related to proceeds

criminal activity, money laundering or the funding

terrorism; (f) monitor and where appropriate enhance the measures, policies, controls and procedures adopted to better achieve their intended purpose. PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 17

the subject person may identify one

its members who is to be responsible for the implementation

these measures, policies, controls and procedures.

either relevant financial business or relevant activity.

the professional activities as defined under ‘relevant activity’ in regulation 2 as an employee

a legal person, the obligations under this regulation shall apply to that legal person. 6.

a group shall be required to implement group-wide policies and procedures that include the measures established under regulation 5

information within the group for the prevention

money laundering and the funding

terrorism. These policies and procedures shall be implemented effectively at the level

branches and majority-owned subsidiaries in Member States and third countries: Provided that, unless otherwise instructed by the Financial Intelligence Analysis Unit and subject to the provisions

regulation 16, a subject person that is part

a group and discloses information in accordance with regulation 15

preventing and detecting money laundering and the funding

terrorism.

that Member State, transposing the provisions

Directive (EU) 2015/849.

terrorism measures are less stringent than those under these regulations shall ensure that those branches or majority-owned subsidiaries implement the provisions

these regulations in so far as that third country’s legislation permits the implementation

such provisions.

such third countries does not permit the implementation

the policies and procedures under sub-regulation

2019; L.N. 26

2020. 18 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 those branches and majority-owned subsidiaries apply additional measures to effectively handle the risk

money laundering and funding

terrorism and shall immediately inform the Financial Intelligence Analysis Unit about these circumstances and the measures taken: Provided that where the additional measures are not adequate, the Financial Intelligence Analysis Unit shall, in collaboration with any relevant supervisory authority, exercise additional supervisory actions, including requiring those subject persons not to establish or to terminate existent business relationships and not to undertake transactions and, where necessary require those subject persons to close down their operations in the third country.

information in accordance with sub-regulation

the other Member States, and the European Supervisory Authorities, and shall seek to cooperate and coordinate its actions with such relevant supervisory authorities and the European Supervisory Authorities, as necessary.

Directive (EU) 2015/849 which may be adopted by the European Commission setting out the minimum action to be taken. Customer due diligence.  Amended by: L.N. 26

2020; L.N. 379

2024. 7.

the customer, and the verification

the identity

the customer on the basis

documents, data or information obtained from a reliable and independent source, including, where available, electronic identification means issued under electronic identification schemes, or relevant trust services as set out in Regulation (EU) No 910/2014, or any other secure, remote or electronic identification process approved by the Financial Intelligence Analysis Unit under procedures issued in terms

regulation 17: Provided that where the customer is a body corporate, a body

persons, or any other form

legal entity or arrangement, subject persons shall also verify the legal status

the customer and shall also identify all directors and, where the customer does not have directors, all such other persons vested with its administration and representation: Provided further that where the customer is a PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 body corporate, a body

persons or any other form

legal entity incorporated in a Member State or a trust or similar legal arrangement administered in a Member State, that is subject to the registration

beneficial owner information, subject persons shall also obtain proof that such beneficial ownership information has been duly registered with a designated beneficial ownership register. (b) the identification, where applicable,

the beneficial owners, and the taking

reasonable measures to verify their identity so that the subject person is satisfied

knowing who the beneficial owners are, including, in the case

a body corporate, foundations, trusts and similar legal arrangements, the taking

reasonable measures to understand the ownership and control structure

the customer; (c) assessing and, as appropriate, obtaining information on the purpose and intended nature

the business relationship, and establishing the business and risk profile

the customer; (d) relationship. conducting ongoing monitoring

the business

a business relationship for the purposes

sub-regulation

transactions undertaken throughout the course

the relationship to ensure that the transactions being undertaken are consistent with the subject person’s knowledge

the customer and

his business and risk profile, including, where necessary, the source

funds; and (b) ensuring that the documents, data or information held by the subject person are reviewed and kept up-to-date.

a customer, in addition to identifying and verifying the identity

the customer and, where applicable, the beneficial owner, subject persons shall ensure that such person is duly authorised in writing to act on behalf

the customer and shall identify and verify the identity

that person.

regulation 8, customer due diligence measures shall be applied to all customers 19 20 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 when: (

1. a)establishing a business relationship; (
2. b)carrying out an occasional transaction; and (
3. c)the subject person has knowledge or suspicion

proceeds

criminal activity, money laundering or the funding

terrorism, regardless

any derogation, exemption or threshold.

the following circumstances occur:        S.L. 123.127 (

1. a)when the subject person becomes aware that the relevant circumstances surrounding a business relationship have changed; or (
2. b)when the subject person has a legal duty to contact the customer for the purpose

reviewing and updating any information relating to the beneficial owners, including when the subject person has such a duty in terms

the Cooperation With Other Jurisdiction On Tax Matters Regulations.

the previously obtained customer identification information.

the customer due diligence measures shall be commensurate to the risks

money laundering and funding

terrorism identified through the risk assessments carried out in terms

regulation 5 and may vary from case to case.

the customer and, where applicable, the beneficial owner in terms

subregulations

long-term insurance policies: (

1. a)where the beneficiaries are specifically named natural persons, legal entities or arrangements, subject persons shall identify such beneficiaries; (
2. b)where the beneficiaries are designated by characteristics, class or other means, subject persons shall obtain sufficient information concerning those beneficiaries to PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 21 be able to identify them at the time

payout; (c) where the beneficiaries assign any

their rights vested under the policy, subject persons shall, at the time

becoming aware

the assignment, identify the natural persons, legal entities or arrangements receiving for their own benefit the value

the policy assigned; (d) verify the identity

the beneficiaries at the time

payout.

this regulation shall be guilty

an

fence and shall be liable, on conviction, to a fine (multa) not exceeding fifty thousand euro (€50,000) or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.

the European Parliament and

the Council

31 May 2023 on information accompanying transfers

funds and certain crypto-assets and amending Directive (EU) 2015/ 849 (recast) or under the National Interest (Enabling Powers) Act, subject persons carrying out relevant financial business involving the transfer

funds or the transfer

crypto-assets as defined under the said Regulation shall comply with Chapters II, III and V

the said Regulation.       Cap. 365. 7A.

the relevant supervisory authority may, on the basis

an appropriate risk assessment which demonstrates a low risk

money laundering and funding

terrorism, exempt subject persons issuing electronic money from the carrying out

customer due diligence measures under regulation 7

2020. (a) the payment instrument is not reloadable, or is subject to a maximum monthly payment transaction limit

one hundred fifty euro (€150) which can be used only in Malta; (

1. b)the maximum amount stored electronically does not exceed one hundred fifty euro (€150); (
2. c)the payment instrument is used exclusively to purchase goods or services; (
3. d)the payment instrument cannot be funded with anonymous electronic money; and 22 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 (e) the issuer carries out sufficient monitoring

the transactions and the business relationship to enable the detection

unusual or suspicious transactions: Provided that this exemption shall not be applied in the case

redemption in cash or cash withdrawals

the monetary value stored on the payment instrument where the amount redeemed or withdrawn would exceed fifty euro (€50), or in the case

remote payment transactions where the amount paid exceeds fifty euro (€50).

money laundering and funding

terrorism is identified in accordance with regulation 10, even where the exemption envisaged under subregulation

payment transactions" means a payment service provided by a payment service provider contracting with a payee to accept and process payment transactions which results in a transfer

funds to the payee;   Cap. 376. "payment transaction" has the same meaning as is assigned to the term under the Second Schedule to the Financial Institutions Act; "remote payment transaction" means a payment transaction initiated via internet or through a device that can be used for distance communication. Verification

identification. Amended by: L.N. 214

2020. 8.

the customer and, where applicable, the identity

the beneficial owner, before the establishment

a business relationship or the carrying out

an occasional transaction.

sub-regulation

a business relationship where this is necessary so as not to interrupt the normal conduct

business provided that the risk

money laundering or the funding

terrorism is low and, provided further, that the verification procedures be completed as soon as is reasonably practicable after the establishment

the business relationship. PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01

sub-regulations

a trust, legal entity or arrangement are designated by particular characteristics or class, the subject person shall identify and verify the identity

the beneficiaries at the time

payout or at the time the beneficiaries exercise their vested rights: Provided that, before the establishment

a business relationship or the carrying out

an occasional transaction, the subject person shall obtain sufficient information concerning the beneficiaries to be able to identify and verify their identity at the time

payout or at the time the beneficiaries seek to exercise their vested rights.

f the customer about the submission

a disclosure in terms

regulation 15

terrorism analysis or investigation, that business shall proceed on condition that a disclosure is immediately lodged with the Financial Intelligence Analysis Unit in accordance with regulation 15

the definition ''relevant activity'' shall not be bound by the provisions

this sub-regulation if those subject persons are acting in the course

ascertaining the legal position

their client or performing their responsibilities

defending or representing that client in, or concerning, judicial procedures, including providing advice on instituting or avoiding procedures.

funds

a customer or a potential customer and who pursuant to sub-regulation

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 transaction and to return, release or transfer those funds, shall as far as reasonably possible return those funds to the same source from where they originated and through the same financial channels by which the subject person came into possession

the funds, unless an order has been made or a notice has been issued in terms

the Act or these regulations prohibiting the release

such funds. Additional provisions on customer due diligence for casino and gaming licensees. Amended by: L.N. 379

2024. 9.

regulation 8

regulation 7

a business relationship or otherwise.

subregulation

the Gaming Act or

any regulations made or directives issued thereunder; (b) ensure that the particulars relating to the identity

a person exchanging chips or tokens to the value

two thousand euro (€2,000) or more is matched with, and cross referred to, the particulars relating to the identity

the person exchanging cash, cheques or bank drafts, or making a credit or debit card payment in exchange for chips or tokens, and shall further ensure that chips or tokens are derived from winnings made whilst playing a game or games at the casino; and (c) ensure that the provisions

paragraph (b) are also applied in cases where in any one gaming session a person carries out transactions which are individually for an amount

less than two thousand euro (€2,000) but which in aggregate equal or exceed such amount. Simplified customer due diligence. Amended by: L.N. 26

2. applied:

money laundering and funding

terrorism, having taken into consideration the findings

any national risk assessment and any other relevant factors as may be deemed appropriate; or (b) where, on the basis

the risk assessments carried out in accordance with regulation 5, the subject person determines that any occasional transaction or a business relationship represents a low risk

money laundering and PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 25 funding

terrorism.

regulation 7

proceeds

criminal activity, money laundering or the funding

terrorism. 11.

money laundering or funding

terrorism, having taken into consideration the findings

any national risk assessment and any other relevant factors as may be deemed appropriate; (b) where, on the basis

the risk assessments carried out in accordance with regulation 5, the subject person determines that an occasional transaction, a business relationship or any transaction represents a high risk

money laundering or funding

terrorism; and (c) in the cases referred to in sub-regulations

sub-regulation

money laundering or funding

terrorism.

the respondent’s business and to determine from publicly available information the reputation

the institution and the quality

supervision on that institution,including whether the respondent institution has been subject to any money Enhanced customer due diligence.  Amended by: L.N. 26

2020; L.N. 214

2020; L.N. 379

2024. 26 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM laundering or funding

terrorism investigation, or regulatory action; (b) they assess the adequacy and effectiveness

the respondent institution’s measures, policies, controls and procedures for the prevention

money laundering and the funding

terrorism; (c) the prior approval

senior management for the establishment

new correspondent relationships is obtained; (d) they clearly understand and document the respective responsibilities

each institution for the prevention

money laundering and the funding

terrorism; (e) with respect to payable-through accounts, they are satisfied that the respondent institution has verified the identity

and performed on-going due diligence on the customers having direct access to the accounts

the respondent institution and that they are provided with relevant customer due diligence data upon request.

crypto-asset services as defined in point

Article 3

Regulation (EU) 2023/1114, with the exception

point (h)

such point, with a respondent institution from a country other than a Member State that is providing similar services, including the transfer

crypto-assets, the cryptoasset service provider shall: (a) carry out the measures referred to in subregulation

the said sub-regulation to be read as a reference to "payable-through crypto-asset accounts"; (

1. b)determine whether the respondent institution is licensed or registered; (
2. c)document the reasons for the termination

any such relationship where this is attributable to reasons relating to anti-money laundering or countering the funding

terrorism; and (d) without prejudice to the generality

the obligations arising from other provisions

these regulations: (i) take into account any information obtained through the carrying out

the measures referred above to implement appropriate measures to mitigate the risks associated with the respondent institution; and PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 (ii) update any information obtained through the carrying out

the measures referred to above on a regular basis or when new risks emerge in relation to the respondent institution.

money laundering and, or the funding

terrorism associated with transfers

crypto-assets directed to, or originating from a self-hosted address, so that any such crypto-asset service provider applies the necessary measures to mitigate the identified risks including one or more

the following measures: (a) taking risk-based measures to identify, and verify the identity

, the originator or beneficiary

a transfer made to, or from a self-hosted address or the beneficial owner

such originator or beneficiary, including through reliance on third parties; (b) requiring additional information on the origin and destination

the transferred crypto-assets; (c) conducting enhanced ongoing monitoring

those transactions; and (d) any other measures to mitigate and manage the risks

money laundering and terrorist financing.

senior management; (b) take adequate measures to establish the source

wealth and source

funds; and 27 28 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM (c) conduct enhanced ongoing monitoring

such business relationships.

long-term insurance business subject persons shall take reasonable measures to determine whether the beneficiaries

a policy and, where applicable, the beneficial owner

the beneficiary are politically exposed persons, which measures shall be taken no later than the time

payout or the time

the assignment, in whole or in part,

the policy: Provided that where the beneficiaries

the policy or, where applicable, the beneficial owner

the beneficiary are politically exposed persons, subject persons shall inform senior management before proceeding with the payout under the policy and shall conduct enhanced scrutiny

the entire business relationship with the policy holder: Provided further that, where the beneficiaries

a policy or, where applicable, the beneficial owner

the beneficiary are politically exposed persons and the subject person has additional indications

a higher risk

money laundering or funding

terrorism, the subject person shall consider whether it is to submit a disclosure to the Financial Intelligence Analysis Unit in accordance with regulation 15

enhanced customer due diligence measures on a risk sensitive basis, where a politically exposed person is no longer entrusted with a prominent public function, subject persons shall be required to apply enhanced due diligence measures in accordance with sub-regulations

politically exposed persons, and, for the purposes

this sub-regulation: "family members" includes: (

1. i)the spouse, or a person considered to be equivalent to a spouse; (
2. ii)the children and their spouses, or persons considered to be equivalent to a spouse; and (iii) the parents. "persons known to be close associates" means: (
3. i)a natural person known to have joint PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 beneficial ownership

a body corporate or any other form

legal arrangement, or any other close business relations, with that politically exposed person; (ii) a natural person who has sole beneficial ownership

a body corporate or any other form

legal arrangement that is known to have been established for the benefit

that politically exposed person.

all transactions that: (

1. a)are complex; (
2. b)are unusually large; (
3. c)are conducted in an unusual pattern; or (
4. d)have no apparent economic or lawful purpose: Provided that in such cases subject persons shall increase the degree and nature

monitoring

the business relationship, to determine whether those transactions or activities are suspicious in terms

regulation 15

the customer and, where applicable, the beneficial owners; (b) obtain additional information on the intended nature

business relationships; (c) obtain additional information on the source

wealth and source

funds

the customer, and, where applicable, the beneficial owners; (d) obtain information on the purpose

prospective or executed transactions; (e) obtain the approval

senior management when establishing business relationships, carrying out occasional transactions or continuing business relationships; (f) conduct enhanced monitoring

business relationships by increasing the frequency

monitoring, and identifying and, where appropriate, examining patterns

transactions that require 29 30 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 further scrutiny; and (g) where applicable, require that the first payment be carried out through a bank account in the customer’s name held with a bank subject to customer due diligence obligations that are consistent with those laid down under these regulations.

which there is an international call for counter-measures, subject persons shall inform in writing the Financial Intelligence Analysis Unit, and shall apply one or more

the following enhanced customer due diligence measures: (

1. a)carry out additional customer due diligence measures; (
2. b)introduce enhanced reporting mechanisms systemic reporting

transactions; (c) limit occasional transactions relationships involving such jurisdictions. or or business non-reputable

sub-regulation

the following counter-measures: (a) refuse the establishment in Malta

branches, representative

fices or subsidiaries

persons or entities undertaking activities equivalent to relevant financial business or relevant activity which are situated in such non-reputable jurisdictions, or otherwise take into account the fact that that person or entity is situated in a non-reputable jurisdiction that has deficiencies in its anti-money laundering and counter funding

terrorism regime; (b) prohibit subject persons from establishing branches or representative

fices in such a non-reputable jurisdiction or otherwise take into account the fact that the branch or representative

fice would be situated in a non-reputable jurisdiction that has deficiencies in its anti-money laundering and counter funding

terrorism regime; (c) carry out increased compliance monitoring or require increased external audit requirements on branches and subsidiaries,

persons and entities PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 31 referred to in sub-regulation

a group in respect

their branches or subsidiaries in such non-reputable jurisdictions; and (e) require subject persons carrying out relevant financial business to review, amend or terminate correspondent relationships with respondent institutions established in such non-reputable jurisdiction.

sub-regulation

the Financial Intelligence Analysis Unit, or a supervisory authority, acting pursuant to its powers at law, to apply, in the case referred to in this sub-regulation, measures other than those envisaged in that proviso, or to apply measures so envisaged in other situations as deemed appropriate.

money laundering and for combating the funding

terrorism, in relation to the risks posed by individual third countries, and shall duly notify the European Commission

any measures taken. 12.

this regulation "third party" shall mean any person or institution, including member organisations or representative bodies

such person or institution, situated in a Member State other than Malta or a third country that: (

1. a)apply customer due diligence requirements and record keeping requirements that are consistent with those laid down under these regulations; and (
2. b)have their compliance with anti-money laundering and counter-financing terrorism requirements monitored in a manner which is consistent with Section 2

Chapter VI

Directive (EU) 2015/849: Reliance on performance by other subject persons or third parties.  Amended by: L.N. 214

2020. 32 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM Provided that subject persons may not rely on third parties from a non-reputable jurisdiction, or any other jurisdiction which is considered by the subject person to present a high risk

money laundering or funding

terrorism unless such third parties are branches or majority-owned subsidiaries

persons or institutions established in a Member State subject to national provisions implementing Directive (EU) 2015/849 and which comply fully with group-wide policies and procedures equivalent to those mentioned under regulation 6.

the identification and verification data relevant to the customer and the beneficial owner and other relevant documentation required in terms

regulation 7

persons or institutions established in a Member State or a third country other than Malta and subject persons that have branches or majority owned subsidiaries in a Member State or a third country shall be considered to comply with the provisions

subregulations

the same group; (b) that group applies customer due diligence measures, record keeping measures and anti-money laundering and counter-funding

terrorism policies and procedures equivalent to those under these regulations; (c) the effective implementation

the measures and requirements referred to in paragraph (b) at group level is subject to supervision by a relevant authority.

a contractual agreement, the outsourcing service provider or agent is to be regarded as part

the subject person. PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 13.

the prevention, detection, analysis and investigation

money laundering or funding

terrorism activities by the Financial Intelligence Analysis Unit, relevant supervisory authorities, or law enforcement agencies in accordance with the provisions

applicable law: (a) in relation to any business relationship that is formed or an occasional transaction that is carried out, the customer due diligence documentation, data and information obtained in fulfilment

the requirements under regulations 7 to 12; (b) supporting evidence and records necessary to reconstruct all transactions carried out by that person in the course

a business relationship or any occasional transaction, which shall include original documents or other copies admissible in court proceedings; (c) a record

any disclosures made to the Financial Intelligence Analysis Unit in accordance with regulation 15

any internal reports made in accordance with regulation 15

any written determinations made in accordance with regulation 15

any training provided in accordance with regulation 5

regulation 17.

five years commencing on – (

1. a)in relation to the documentation, data or information described in paragraph (
2. a)thereof, the date when the business relationship ends or when the occasional transaction is carried out, and where the formalities necessary to end a business relationship could not be observed, the date on which the last transaction in the course

that business relationship was carried out; (

1. b)in relation to the supporting evidence and records described in paragraph (
2. b)thereof, the date when the 33 Record keeping procedures.  Amended by: L.N. 26

2020; L.N. 199

2021. 34 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM business relationship ends or when the occasional transaction is carried out, and where the formalities necessary to end a business relationship could not be observed, the date on which the last transaction in the course

that business relationship was carried out; (

1. c)in relation to the records described paragraphs (
2. c)to (e), the later between the following: in (
3. i)the date when the business relationships ends or the occasional transaction is carried out; or (
4. ii)the date when the report or determination is submitted or drawn up, as the case may be; (
5. d)in relation to the records described in paragraph (f), the date when the event referred to therein took place: Provided that, in relation to records relating to an occasional transaction consisting in several operations which appear to be linked, the aforesaid period

five years shall commence on the date on which the last operation took place: Provided further that the period

five years may be further extended, up to a maximum retention period

ten years, where, after a thorough assessment

the necessity and proportionality

such further extension, it is concluded that the extension is justified as necessary for the purposes

the prevention, detection, analysis and investigation

money laundering or funding

terrorism activities by the Financial Intelligence Analysis Unit, relevant supervisory authorities or law enforcement agencies.

the prevention, detection, analysis and investigation

money laundering and the funding

terrorism.

MONEY LAUNDERING AND FUNDING

TERRORISM (b) [ S.L. 373.01 35 the nature

that relationship.

personal data shall no longer be deemed necessary for the purposes

these regulations beyond the period established in terms

sub-regulation

the second proviso to subregulation

personal data for the purposes

the Act and these regulations shall be deemed to be a matter

public interest under Regulation (EU) 2016/679, and the term "personal data" shall have the same meaning as is assigned to it under Regulation (EU) 2016/679.

this regulation shall be without prejudice to the right

any other authority in terms

applicable law to access the documents, data and information described in subregulation

the effectiveness

the national system to combat money laundering or the funding

terrorism and the carrying out

national risk assessments.

the different sectors which are subject to anti-money laundering and counter-funding

terrorism obligations under these regulations, including the number

entities and persons conducting a relevant activity or a relevant financial business and the economic importance

each sector; (b) the kind

activity conducted by the entities and persons referred to in paragraph (a); (c) the number

suspicious transaction reports made to the Financial Intelligence Analysis Unit, the types

underlying criminal activities, where this information is known, and the follow up given to these reports; (d) where available, data identifying the number and percentage

suspicious transaction reports resulting in further investigation, together with an annual report to subject persons detailing the usefulness and follow-up

the reports presented; Statistical data.  Substituted by: L.N. 26

2020. Amended by: L.N. 313

2021. 36 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 (e) statistics relevant to the exchange

information between the Financial Intelligence Analysis Unit and foreign counterparts, including data regarding the number

requests for information made, received, refused and answered in full or in part, broken down per foreign counterpart; (f) statistics relevant to the exchange

information between the Financial Intelligence Analysis Unit and any designated authority as defined under article 14

the Act, including data regarding the number

requests for information made, received, refused and answered in full or in part, as well as the time taken to respond to a request for information broken down per designated authority; (g) statistics relevant to the exchange

information between the Financial Intelligence Analysis Unit and Europol as defined under article 14

the Act, including data regarding the requests for information received, refused and answered in full or in part, as well as the time taken to respond to a request for information; (h data on human resources and information technology resources available to the Financial Intelligence Analysis Unit to carry out its functions under article 16

the Act; (i) the number

on-site and

f-site examinations carried out on subject persons with the aim

monitoring their compliance with the provisions

the Act and any regulations made thereunder, the number

compliance failures or contraventions identified following such examinations, and the number and values

administrative measures or penalties imposed: Provided that the statistical data set out in paragraphs (f) to (h) shall also be maintained to assist in the review

the effectiveness

the national system to combat any other serious criminal

fences as defined in the first proviso to article 27C

the Act.

the statistical data gathered in accordance with this regulation on an annual basis and shall ensure that such statistical data is also made available to the National Co-ordinating Committee on Combating Money Laundering and Funding

PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 37 Terrorism established by the National Co-ordinating Committee on C o m b a t i n g M o n e y L a u n d e r i n g a n d F u n d i n g o f Te r r o r i s m Regulations in terms

article 12A

the Act and the European Commission on an annual basis and upon request. 15.

regulation 5

one

its

ficers

sufficient seniority and command as the reporting

ficer, who may be the same

ficer referred to in regulation 5

ficers and employees

the subject person are to report any information or other matter which may give rise to a knowledge or suspicion that funds, regardless

the amount involved, are the proceeds

criminal activity or are related to funding

terrorism, or that a person may have been, is or may be connected with money laundering or the funding

terrorism; (b) the consideration

any such report by the reporting

ficer or by another designated employee

the subject person, in the light

all other relevant information, for the purpose

determining whether or not the information or other matter contained in the report does give rise to a knowledge or suspicion that funds, regardless

the amount involved, are the proceeds

criminal activity or are related to funding

terrorism, or that a person may have been, is or may be connected with money laundering or the funding

terrorism; (c) unrestricted access for the reporting

ficer or another designated employee to any relevant information held by the subject person; (d) a procedure whereby the reporting

ficer or another designated employee submits a report to the Financial Intelligence Analysis Unit in accordance with sub-regulation

the amount involved, are the proceeds

criminal activity or are related to funding

terrorism, or that a person may have been, is or may be connected with money laundering or the funding

terrorism; (e) notifying the Financial Intelligence Analysis Unit and the relevant supervisory authority, where applicable,

the details

the appointed reporting

ficer and any subsequent changes thereto and the appointment

a designated employee for the purposes

paragraphs (b) to (d); and Reporting procedures and obligations. Amended by: L.N.77

2019; L.N. 214

2020; L.N. 82

2026. 38 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM (f) the approval by the reporting

ficer

any employee designated by the subject person for the purposes

paragraphs (

1. b)to (
2. d)who shall work under his direction.

sub-regulation

the amount involved, are the proceeds

criminal activity or are related to funding

terrorism, or that a person may have been, is or may be connected with money laundering or the funding

terrorism, or that an attempt has been made to carry out a transaction or activity related to such proceeds or funding

terrorism , that subject person shall, promptly disclose that information, supported by the relevant identification and other documentation, to the Financial Intelligence Analysis Unit through such channels and in such format as the Financial Intelligence Analysis Unit may direct.

criminal activity or the funding

terrorism, the subject person shall not carry out that transaction until it has informed the Financial Intelligence Analysis Unit in accordance with this regulation and, upon informing the Financial Intelligence Analysis Unit, it shall refrain from executing that transaction as provided for under article 28

the Act.

investigating or pursuing the beneficiaries

the suspected money laundering or funding

terrorism operations, the subject person shall accordingly inform the Financial Intelligence Analysis Unit immediately after the transaction is effected.

an internal report in accordance with sub-regulation

ficer or other designated employee determines that no reporting to the Financial Intelligence Analysis Unit is required in terms

this regulation, the reporting

ficer shall record the reasons for such determination in writing and, upon request, shall make it available to the Financial Intelligence Analysis Unit or a supervisory authority acting on behalf

the Financial Intelligence Analysis Unit in monitoring compliance with these regulations.

criminal activity or the funding

terrorism, or to a person who may have been, is or may be connected PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 with money laundering or the funding

terrorism, or to an attempt to carry out a transaction or activity related to proceeds

criminal activity or funding

terrorism, that supervisory authority shall, promptly, disclose those facts or that information, supported by the relevant documentation that may be available, to the Financial Intelligence Analysis Unit.

a disclosure as in subregulation

time; Provided further that a subject person may make representations justifying why the requested information cannot be submitted within the said time and the Financial Intelligence Analysis Unit may, at its discretion and after having considered such representations, extend such time as is reasonably necessary to obtain the information, whereupon the subject person shall submit the information requested within the time as extended.

the definition ''relevant activity'' shall not be bound by the provisions

sub-regulations

ascertaining the legal position

their client or performing their responsibility

defending or representing that client in, or concerning, judicial proceedings, including advice on instituting or avoiding proceedings, whether such information is received or obtained before, during or after such proceedings.

such a supervisory authority or subject person in accordance with these regulations shall not be treated as a breach

the duty

professional secrecy or any other restriction (whether imposed by statute or otherwise) upon the disclosure

information and shall not involve that supervisory authority or subject person or the directors or employees

such supervisory authority or subject person in any liability

any kind, even in circumstances where they were not precisely aware

the underlying criminal activity and regardless

whether illegal activity actually occurred. 39 40 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01

the Act, provide subject persons and, where applicable, supervisory authorities with timely feedback on the effectiveness

suspicious transaction reports and

any other information it receives under this regulation. Protection when reporting suspicions

money laundering and funding

terrorism. Added by L.N. 77

2019. 15A.

any individual who reports, either internally within the subject person or to the Financial Intelligence Analysis Unit, knowledge or suspicions

money laundering or funding

terrorism, or who reports knowledge or suspicions that funds are the proceeds

criminal activity.

ficials

subject persons, who reports, either internally within the subject person or to the Financial Intelligence Analysis Unit, knowledge or suspicions

money laundering or funding

terrorism, or knowledge or suspicions that funds are the proceeds

criminal activity.

ficial

a subject person, who believes that detrimental action has been taken or is to be taken against him in reprisal for making a report as envisaged under sub-regulation

an application under sub-regulation

damages, including, but not limited to, moral damages as the court may determine, due to the individual who suffered the detrimental action; or PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 (b) grant an injunction in any terms it considers appropriate.

the Code

Organisation and Civil Procedure, an injunction granted in terms

sub-regulation

articles 873 and 875

the Code

Organisation and Civil Procedure shall apply to warrants issued under sub-regulation

articles 829 to 838B

the Code

Organisation and Civil Procedure shall not apply to injunctions granted in terms

sub-regulation

Schedule A

the Code

Organisation and Civil Procedure, no registry fees shall be charged on an application filed in the First Hall

the Civil Court by any individual referred to in sub-regulation

ficials

a subject person, who may have suffered detrimental action as a result

making a report as referred to in sub-regulation

any other law, the First Hall, Civil Court shall have exclusive jurisdiction to hear and determine an application under sub-regulation

the Court in a confidential manner and no access shall be given thereto except to the parties and their respective advocates.

the First Hall, Civil Court issued pursuant to this regulation shall preserve the confidentiality

the proceedings and shall only reveal such facts as may be necessary to make the same intelligible and enforceable by the parties.

this regulation, "detrimental action" means threats, retaliatory or hostile action, including adverse or discriminatory employment actions, and without prejudice to the generality

the foregoing shall include: (

1. a)any action causing injury, loss, or damage; and, or (
2. b)victimisation, intimidation or harassment; and, or 41 42 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM (

1. c)dismissal, suspension or demotion except where administratively or commercially justifiable for organisational reasons; and, or (
2. d)being adversely affected in respect

one’s employment, profession or

fice, including employment opportunities and work security; and, or   Cap. 9. (e) prosecution under article 101

the Criminal Code relating to calumnious accusations; and, or (f) civil or criminal proceedings or disciplinary proceedings. Prohibition

disclosure.  Amended by: L.N. 430

2018; L.N. 77

2019; L.N. 26

2020; L.N. 379

2024. 16.

ficial or employee

a subject person or a supervisory authority, or any person from whom the Financial Intelligence Analysis Unit has demanded information pursuant to these regulations or article 30

the Act, or any other person who has transmitted information to the Financial Intelligence Analysis Unit, who discloses to the person concerned or to a third party, other than as provided for in this regulation, the fact that information has been demanded by the Financial Intelligence Analysis Unit or that information has been or may be transmitted to the Financial Intelligence Analysis Unit, or that an analysis or an investigation has been, is being, or may be carried out, shall be guilty

an

fence and liable on conviction to a fine (multa) not exceeding one hundred and fifteen thousand euro (€115,000) or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.

fence under sub-regulation

the same group and apply group-wide policies and procedures as provided for under regulation 6; (

1. c)disclosures between subject persons who undertake activities under paragraph (
2. a)or paragraph (c)

the definition "relevant activity" or between those subject persons and other persons undertaking activities equivalent to those under the said paragraphs in a Member State or a third country imposing requirements similar to those laid down in these PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 regulations, who perform their professional activities, whether as employees or not, within the same legal person or within a larger structure to which they belong and which share common ownership, management or compliance control; (

1. d)disclosures between a subject person who undertakes relevant financial business, under the definition "relevant financial business" or the activities under paragraph (
2. a)or paragraph (c)

the definition "relevant activity" and another person from the same professional category situated in a Member State or a third country imposing requirements similar to those laid down in these regulations and in cases related to the same customer and the same transaction, provided such persons are subject to obligations as regards professional secrecy and personal data protection; (e) disclosures by a subject person in the course

proceedings instituted against the subject person for, or as a consequence

, the failure or delay in carrying out a transaction in a competent court, tribunal or other judicial authority in or outside Malta, including disclosures made in any written pleadings or submissions, that the subject person refrained from carrying out a transaction as required in terms

article 28

the Act: Provided that disclosures under this paragraph shall not constitute an

fence under sub-regulation

the period

time referred to in the proviso to article 28

the Act, and where applicable, after the lapse

any period

time during which the execution

the transaction is opposed by the Financial Intelligence Analysis Unit in terms

article 28

the Act; (f) disclosures by a subject person to a supervisory authority or professional body exercising supervision or regulatory oversight over that subject person, made in response to an enquiry or action by that supervisory authority or professional body with respect to the subject person’s failure or delay in carrying out a transaction, that the subject person refrained from carrying out a transaction as required in terms

article 28

the Act: Provided that disclosures under this paragraph shall not constitute an

fence

sub-regulation

the period

time referred to in the proviso to article 28

the Act, and where applicable, after the lapse

any period

time during which the execution

the transaction is opposed by the Financial Intelligence Analysis Unit in terms

article 28 43 44 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM

the Act; (g) any disclosures by an individual in the course

proceedings instituted under regulation 15A, including any disclosures made in any written pleadings or submissions.

the definition "relevant activity" is seeking to dissuade a client from engaging in an illegal activity shall not constitute an

fence under sub-regulation

the data subject referred to in regulation 4

the Restriction

the Data Protection (Obligations and Rights) Regulations, in particular the right

access, shall be restricted, partially or completely, where such a restriction is necessary and proportionate for a subject person to adhere to his obligations under sub-regulation

the relevant supervisory authority, may issue procedures and guidance as may be required for the carrying into effect

the provisions

these regulations, and which shall be binding on subject persons. Power to terminate a business relationship. 18. Where the Financial Intelligence Analysis Unit knows or has reasonable grounds to suspect that, in connection with a business relationship established by a subject person, money laundering or funding

terrorism is taking place, has taken place or has been attempted, or that such business relationship could increase the risk

money laundering or funding

terrorism, the Financial Intelligence Analysis Unit may, where the circumstances so warrant, require such subject person to terminate that business relationship within a stipulated period

time. Periodical reporting. 19. In fulfilment

its supervisory functions under the Act, the Financial Intelligence Analysis Unit may require subject persons to submit periodical reports on the measures and procedures they maintain and apply pursuant to regulation 5 and any other information or documents as the Financial Intelligence Analysis Unit may consider necessary. Format

information. 20. Where a subject person is required to provide information to the Financial Intelligence Analysis Unit under the Act, these regulations and any procedures or guidance issued thereunder, the Financial Intelligence Analysis Unit may demand that the information is produced electronically and may establish the format within which the information is to be provided. PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 21.

its anti-money laundering and counter-funding

terrorism obligations shall be liable to an administrative penalty

not less than one thousand euro (€1,000) and not more than forty-six thousand five hundred euro (€46,500) in respect

every separate failure to comply with or contravention

any such obligation.

sub-regulation

a subject person carrying out a relevant activity, an administrative penalty

not more than one million euro (€1,000,000) or, where the benefit derived from that contravention can be quantified, not more than twice the amount

the benefit so derived; or (ii) in the case

a subject person carrying out relevant financial business, an administrative penalty

not more than five million euro (€5,000,000) and, where such amount is deemed not to be effective and dissuasive in view

the serious, systematic and repeated nature

the contraventions, an administrative penalty

not more than ten per centum (10%)

the total annual turnover according to the latest available approved annual financial statements: Provided that where the subject person is a parent undertaking or a subsidiary

a parent undertaking which is required to prepare consolidated accounts, the relevant total annual turnover shall be the total annual turnover resulting from the latest available consolidated accounts approved by the ultimate parent undertaking.

2019; L.N. 26

2020; L.N. 214

2020; L.N. 199

2021; L.N. 379

2024. Substituted by: L.N. 82

2026. 46 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM

Governors referred to in the Act. Such policies and procedures shall take into account the principles

natural justice and

a fair hearing, and ensure that any administrative penalty imposed is proportionate, effective and dissuasive.

persons, be it corporate or unincorporate, in addition to any administrative penalty imposed on the subject person, an administrative penalty

not less than one thousand euro (€1,000) and not more than two hundred and fifty thousand euro (€250,000) may be imposed on any individual who at the time

the contravention was: (a) holding the position

a director or holding similar functions and responsibilities within such body or association

persons or purporting to act in any such capacity; (b) an

ficer

such body or association

persons holding a senior executive management function; (c) appointed as a reporting

ficer in accordance with regulation 15

proper oversight

subordinates, caused or contributed to the commission

any such contravention. Settlement agreements. Added by: L.N. 82

2026. 22.

determining the imposition

an administrative penalty on a subject person or any other individual, the Financial Intelligence Analysis Unit may, in its own discretion but in accordance with the policies and procedures referred to in article 13

the Act, propose or agree, to a request, to enter into a settlement agreement with the subject person or individual concerned.

Governors; or (b) two

any corrective or remedial actions undertaken by PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 the subject person or individual concerned as part

a prior settlement agreement: Provided that the Financial Intelligence Analysis Unit may apply this restriction either in general or in relation to the different categories

actions that may be undertaken in accordance with article 26

the Act but in any case it shall not enter into more than two

two

a group, the said limitation shall take into account any settlement agreement entered into with any other subject person within the group.

the agreement and shall include: (a) a description

the contraventions identified by the Financial Intelligence Analysis Unit and the unconditional agreement therewith by the subject person or individual concerned; (b) a description

any corrective or remedial actions which the Financial Intelligence Analysis Unit may deem necessary to restore compliance, where applicable; (

1. c)an undertaking by the subject person or individual concerned to implement the corrective or remedial actions required by the Financial Intelligence Analysis Unit, within such time-frames and subject to such conditions as may be set by or otherwise agreed with the Financial Intelligence Analysis Unit; (
2. d)the administrative penalty which the Financial Intelligence Analysis Unit was intent on imposing on the subject person or individual concerned, and the amount by which the said administrative penalty is reduced on condition that the subject person or individual concerned complies with the terms and conditions

the settlement agreement; (

1. e)an undertaking by the subject person or individual concerned to pay the reduced administrative penalty in accordance with the terms established in the settlement agreement; (
2. f)a waiver by the subject person or individual concerned

any right to appeal, review or to otherwise 47 48 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 challenge the determination and conclusions

the Financial Intelligence Analysis Unit; and (

1. g)a declaration by the subject person or individual concerned that the amount by which the administrative penalty is reduced shall become due and payable to the Financial Intelligence Analysis Unit, upon the Financial Intelligence Analysis Unit’s determination that any corrective or remedial actions as are referred to in paragraph (
2. c)have not been completed as envisaged by the settlement agreement.

the administrative penalty conditionally reduced in accordance with sub-regulation

interest or lack

cooperation by the subject person or individual concerned or within such time as may be set out by the Financial Intelligence Analysis Unit, the Financial Intelligence Analysis Unit shall proceed with the imposition

the administrative penalty in the full amount it was intent on imposing and the imposition

such other measures as it is empowered by law to impose and as it may deem necessary.

the reduced administrative penalty in accordance with the terms and conditions established in the agreement, failing which, the Financial Intelligence Analysis Unit shall proceed with the imposition

the administrative penalty in the full amount it was intent on imposing and the imposition

such other measures as it is empowered by law to impose and as it may deem necessary.

a settlement agreement, the Financial Intelligence Analysis Unit determines that the subject person or the individual concerned failed, without reasonable justification, to comply with the terms

the settlement agreement or with any corrective or remedial action as required by the agreement: (

1. a)the subject person or the individual concerned shall, following a notice in writing from the Financial Intelligence Analysis Unit, forfeit any concession or other benefit arising from the agreement, and the amount by which the administrative penalty had been reduced shall become due and payable to the Financial Intelligence Analysis Unit; (
2. b)the Financial Intelligence Analysis Unit, may by PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 49 notice in writing served on the subject person or on the person concerned, take such other measures as the Financial Intelligence Analysis Unit is empowered by law to take, and as may be deemed necessary in the circumstances, including issuing directives in writing requiring the subject person or any other person concerned to do or to refrain from doing any act, including such prohibitions, restrictions and limitations under such conditions as may be specified in the directives; and (c) the Financial Intelligence Analysis Unit may institute an action before the Civil Court, First Hall, to recover from the subject person or individual concerned the amount by which the administrative penalty had been reduced in terms

the settlement agreement, and to enforce the completion

the corrective or remedial actions that the Financial Intelligence Analysis Unit had imposed through the settlement agreement.

the Code

Organization and Civil Procedure:   Cap. 12. Provided that where leave to defend the action is granted in accordance with article 170

the Code

Organization and Civil Procedure or an appeal is otherwise filed from any decision

the Civil Court, First Hall, the time-frames established in article 13A

the Act shall apply mutatis mutandis: Provided further that articles 13A

the Act shall also apply mutatis mutandis to any action referred to under this sub-regulation or an appeal therefrom.

terrorism obligations, the Financial Intelligence Analysis Unit shall have the power to impose, in conjunction with or instead

an administrative penalty, one or more

the following administrative measures: (

1. a)person; a reprimand in writing to admonish the subject (
2. b)an order requiring a subject person to desist from operating in a non-compliant manner; (
3. c)an order requiring a subject person to comply Additional administrative measures. Added by: L.N. 82

2026. 50 [ S.L. 373.01 PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM with its anti-money laundering or funding

terrorism obligations, including taking such actions as may be necessary to remedy and, or correct the situation within such time-frames and subject to such conditions as may be determined by the Financial Intelligence Analysis Unit; (d) an order requiring a subject person to cease from carrying out transactions or operations within the context

a business relationship, or to

fer any particular product or service, be it temporarily or perpetually: Provided that such administrative measures shall be without prejudice to the powers

the Financial Intelligence Analysis Unit under article 30D

the Act.

regulation 21

administrative measures under this regulation. Communication

administrative penalties and measures to supervisory authorities. Added by: L.N. 82

2026. 24.*

, or the granting

a warrant to the subject person or individual concerned and shall provide all relevant information on the contraventions committed as it deems necessary; (b) may also recommend to any relevant supervisory authority or any other authority, body or committee responsible for the authorisation, licensing, registration or regulation

, or the granting

a warrant to, the subject person or individual concerned, the taking

regulatory or other measures, pertaining to the said authority, body or committee under applicable law, against such subject person or individual concerned as referred to in regulation 21

any such licence, registration, warrant or any other form

authorisation allowing the subject person to carry out one or more specific activities; and, or (ii) the suspension or preclusion

any individual as is referred to in regulation 21

which he is authorised within that subject person or any other subject *Vide Regulation 6

Legal Notice 82

2026. PREVENTION

MONEY LAUNDERING AND FUNDING

TERRORISM [ S.L. 373.01 person, as it may deem appropriate in the circumstances

the case: Provided that the Financial Intelligence Analysis Unit may also make a recommendation instead

imposing an administrative penalty or measure.

these regulations shall be without prejudice to the powers

a supervisory authority or any other authority, body or committee responsible for the authorisation, licensing, registration, regulation or the granting

a warrant to a subject person, to take any action or regulatory measure available to it under applicable law as it may deem appropriate in the circumstances

the case. 51