Malta – Know Your Customer (KYC) Rules

 

 

Malta is not a regional financial center. Malta‘s location between North Africa and Italy makes it a transit point for narcotics and human trafficking to Europe. Incidents of fraud, forgery, and embezzlement are also a concern.

KNOW-YOUR-CUSTOMER (KYC) RULES:

 

Enhanced due diligence procedures for PEPs:

 

PEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person. The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used interchangeably

    • Foreign PEP: YES
    • Domestic PEP: YES

Malta – KYC covered entities

 

The following is a list of Know Your Customer entities covered by Maltese Law:

    • Banks
    • Currency exchange offices
    • Stockbrokers
    • Insurance companies
    • Money remittance/transfer services
    • Real estate agencies
    • Auditors
    • Accountants
    • Notaries
    • Tax advisors
    • Trust and asset managers
    • Company formation agents
    • Nominee shareholders
    • Casinos
    • Auctioneers
    • Dealers in art, precious metals and stones

Malta – Suspicious Transaction Reporting (STR) Requirements:

 

Number of STRs received and time frame: 73 in 2010

Number of CTRs received and time frame: Not applicable

The following is a list of STR covered entities covered by Maltese Law:

    • Banks
    • Currency exchange offices
    • Stockbrokers
    • Insurance companies
    • Money remittance/transfer services
    • Real estate agencies
    • Auditors
    • Accountants
    • Notaries
    • Tax advisors
    • Trust and asset managers
    • Company formation agents
    • Nominee shareholders
    • Casinos
    • Auctioneers
    • Dealers in art, precious metals and stones

MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:

 

Prosecutions: Eight in 2010
Convictions: One in 2010

 

ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:

The Malta Police Economic Crimes Squad is responsible for the investigation of all financial related crimes. Its Money Laundering Unit investigates reports sent by the financial intelligence unit as well as reports from other sources.

The Government of Malta should continue to enhance its anti-money laundering/counter-terrorist financing legislation and procedures, as appropriate.