Malta - Amendments to the Prevention of Money Laundering and Terrorist Financing Regulations

09/03/2020
The Maltese Government published  in February a series of amendments to the Prevention of Money Laundering and Terrorist Financing Regulations ("PMLFTR") S.L. 373.01.
These amendments  transpose EU Directives, with the intention of clarifying certain provisions or reflecting recent changes in legislation. We summarise the amendments below:
  • Modification/extension of the definition of "relevant activity" to include the following new non-financial companies :
    • Natural or legal persons, including free ports, that trade in works of art or which act as intermediaries in the sale of works of art when the value of the transactions is equal to or greater than 10,000 euros.
    • Free ports that store works of art with a value of EUR 10,000 or more.
    • Persons who undertake to provide material aid, assistance or advice in tax matters directly or through other persons to whom they are related.
    • Real estate agents acting as intermediaries in the letting of real estate with a monthly rent of EUR 10 000 or more.
  • Harmonisation of due diligence measures, in particular for non-reputable jurisdictions
  • Reinforcement of CDD exemption criteria for electronic money: it will be more difficult for issuers of prepaid financial instruments to be exempt.
  • Introduction of the definition of a "work of art", in particular to allow a better understanding of new "relevant activities".
  • Amendment to the definition of "Politically Exposed Person" (an exhaustive list of the important public functions that are targeted is now available)
  • Amendments to various definitions such as "occasional transaction", "beneficial owner", "electronic money", "casino", "gaming licensee", "gaming service", "supervisory authority", and "trust company service provider".

The changing threats from criminals and terrorists, both nationally, as here in Malta, and internationally, are leading to the creation and implementation of legal provisions to prevent and combat money laundering and terrorist financing.

Do not hesitate to contact your local Rosemont office, or Rishi Bonello, Director of Rosemont Malta, at r.bonello@rosemont.com.mt for more information on the new Maltese regulation on the prevention of money laundering and terrorist financing.



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