The Financial Intelligence Analysis Unit (the FIAU) has published an amended version of the Implementing Procedures Part 1, with changes taking effect from the 19th July 2019 (the Amendments). The that the Amendments intend to provide Subject Persons with more in-depth qualitative guidance to assist them in better fulfilling their Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) obligations. This follows recent amendments to the , Chapter 373 of the Laws of Malta (the PMLA) and the , Subsidiary Legislation 373.01 of the Laws of Malta (the PMLFTR), brought into force by and . The PMLFTR defines subject persons as those persons, legal or natural, carrying out “relevant activity” or “relevant financial business”. These persons are considered subject persons exclusively when carrying out those activities listed under the definitions of “relevant activity” and “relevant financial business” (Subject Persons). The FIAU has announced that the Amendments have been published following a consultation period made to interested parties in October 2018. The FIAU has announced that amendments have been made to the risk-based approach that Subject Persons are required to adopt and implement in view of their AML/CFT obligations, including what the risk-based approach entails and the carrying out of business and customer risk assessments. The FIAU has also announced that amendments have been made to the Customer Due Diligence (CDD) obligations of Subject Persons, including on the conduct of appropriate and effective on-going monitoring, providing Subject Persons with appropriate and sufficient guidance, and what Subject Persons should do in high risk scenarios. The FIAU has further announced that the Amendments regulate the outsourcing of AML/CFT obligations, including what obligations may be outsourced, the responsibilities of the Subject Persons and outsourced service provider, and the conditions under which outsourcing can take place. The FIAU has also announced that amendments have been made to the chapter dealing with non-reputable jurisdictions and high-risk jurisdictions. The FIAU has further announced that the Amendments coordinate the relationship between the PMLA and the PMLFTR and the , Chapter 365 of the Laws of Malta (the Act), which is the law that regulates sanctions screening in Malta. The Act places sanctions screening, freezing of assets, and reporting obligations on Subject Persons.
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FIAU Publishes Revised AML/CFT Implementing Procedures
Authors:
JC
Joshua Chircop
ARTICLE13 September 2019