By Dan Byrne for AMLi
MALTA’S finance watchdog has introduced key changes to money laundering rules as it continues strengthening its defences against dirty money.
The Financial Intelligence Analysis Unit (FIAU) published a legal notice Monday that outline changes to supervision, AML definitions and financial penalties, among other things.
Perhaps the biggest change is the expansion of what the country considers a ‘supervisory authority.’
That definition now extends to three new bodies: the national Business Registry, the Licencing Board for real estate agents and property brokers, and the Trade Licencing Unit – wherever its activities are involved with the trades of precious metals and stones.
“The inclusion of these authorities within the list is intended to clarify and strengthen the possible cooperation and collaboration that there may be between the FIAU and these new bodies,” the agency said in a statement Monday.
The move will likely be a response to the increased attention given to industries like real estate and precious materials – both of which have come under fire for their vulnerability to dirty money.
Historically, lax regulation and greater anonymity in these areas have opened avenues for criminals to transfer illicit profits, but many jurisdictions across the world including the EU and USA are now clamping down on this.
Separately in the legal notice, the FIAU has clarified its role in imposing financial penalties “on subject persons carrying out relevant financial business.”
A revision to the rules now means the FIAU is always entitled to impose a penalty of up to €5M in the case of “serious, repeated or systematic breaches,” of any requirements laid out in the country’s AML regulations.
But it also clarifies that if the breaches are severe enough, that €5M limit can be stretched – potentially up to 10% of an institution’s turnover.
Other changes to Malta’s AML regulations include expanding the definition of “Trust and Company Service Provider”, bringing recordkeeping requirements closer to EU standards, and changing requirements for subject persons involved with certain business relationships and transactions.
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