Prevention of Money Laundering

We are all aware of the international community’s growing concern about the problem of money laundering and potential terrorist financing which gave rise to the enactment of detailed rules and regulations across the globe including of course Malta. In response to this, our firm has remained always vigilant to all legislation in force in Malta and its dedicated team has accordingly developed a practice in advising clients on procedures to follow and systems to implement in order to ensure full compliance with said legislation.

Malta’s commitment to the fight against money laundering and the funding of terrorism is firmly rooted in the country’s interest in safeguarding its international reputation as a reputable financial services centre. As a member of the European Union, Malta has implemented all EU Directives regulating the prevention of money laundering and is a signatory to the main international multilateral treaties intended to tackle the affliction of money laundering in the world’s financial markets.

In the mid-1990s the Maltese Government embarked on an effort to tighten the country’s legal and regulatory regime closing legal loopholes, introducing new specific anti-money laundering legislation and putting in place a regulatory framework regulating the criminalisation of money laundering activities. This process has been continuing with Malta implementing the provisions of Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purposes of money laundering and terrorist financing (the Third EU Anti-Money Laundering Directive) and Directive 2006/70/EC of 1 August 2006.

Malta does not appear on any international blacklist of countries which are likely to be used for money laundering activities and participates in initiatives adopted at international level such as by the EU Committee on the Prevention of Money Laundering and Terrorist Financing, the MONEYVAL Committee of the Council of Europe, the Financial Action Task Force against money laundering and the OECD.

The principal sources of Maltese law on money laundering as a criminal activity and the prevention thereof are two statutory instruments, namely the Prevention of Money Laundering Act (Act XIX of 1994, as amended), augmenting other provisions found in the Criminal Code, and the Prevention of Money Laundering and Funding of Terrorism Regulations, 2008. Besides, Credit and Financial Institutions licensed in Malta are also required to comply with detailed Guidance Notes on the Prevention of Money Laundering published by the Malta Financial Services Authority.

Fenech & Fenech Advocates provides Financial and Credit institutions licensed in Malta with a detailed but simple overview of the above legislation and Guidance Notes thus enabling them to obtain a clear understanding thereof. Most importantly, our team also assists said institutions with adopting measures and establishing policies and procedures to comply with all their obligations including the obligation to detect cases of attempted money laundering and report same to the competent authorities for future investigations and if necessary prosecution.