The FIAU would like to bring to your attention the latest FATF 'High-Risk Jurisdictions subject to a Call for Action' (previously known as ‘Public Statement’) and 'Jurisdictions under Increased Monitoring' (previously known as ‘Improving global AML/CFT compliance: on-going process’) documents issued by the FATF on 21 October 2021. A copy of these documents has been uploaded on the FIAU’s website under ‘Country Statements’.

The FATF classifies the jurisdictions included in these documents into different categories, in accordance with the deficiencies present in such jurisdictions and the level of commitment and progress made in addressing such deficiencies.

The categories are the following:

1. Jurisdictions with strategic deficiencies in their regime to counter money laundering, terrorist financing, and financing of proliferation that have failed to meaningfully address their AML/CFT deficiencies and are subject to a call for counter-measures (listed under 'High-Risk Jurisdictions subject to a Call for Action’). This process is informally referred to as black listing;

2. Jurisdictions that have developed an action plan with the FATF and have made a high-level political commitment to address their AML/CFT deficiencies (listed in the 'Jurisdictions under Increased Monitoring'). This process is informally referred to as “grey listing”. This document also lists jurisdictions that are no longer subject to the FATF on-going global AML/CFT compliance process, where applicable.

Subject persons are required to implement the measures set out under Regulation 11 of the Prevention of Money Laundering and Funding of Terrorism Regulation S.L. 373.01 (“PMLFTR”) and under Chapter 8 of the FIAU Implementing Procedures Part I, which is legally binding upon all subject persons in terms of Regulation 17 of the PMLFTR.

High-Risk Jurisdictions subject to a Call for Action’

Since February 2020, in light of the COVID-19 pandemic, the FATF has paused the review process for countries in the list of High-Risk Jurisdictions subject to a Call for Action, given that they are already subject to the FATF’s call for countermeasures. Therefore, subject persons should refer to the list of ‘High-Risk Jurisdictions subject to a Call for Action’ adopted in February 2020. While the statement may not necessarily reflect the most recent status in Iran and the Democratic People’s Republic of Korea’s AML/CFT regime, the FATF’s call for action on these high-risk jurisdictions remains in effect. Subject persons should refer to Regulation 11(11) of the PMLFTR and apply the enhanced due diligence measures therein.

'Jurisdictions under Increased Monitoring'

Since the start of the COVID-19 pandemic, the FATF has provided some flexibility to jurisdictions not facing immediate deadlines to report progress on a voluntary basis. The following countries had their progress reviewed by the FATF since June 2021: Albania, Barbados, Botswana, Cambodia, Cayman Islands, Jamaica, Malta, Mauritius, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Philippines, Senegal, Uganda, and Zimbabwe. Burkina Faso, Haiti, and South Sudan were given the opportunity and chose to defer reporting; thus, the statements issued for these jurisdictions may not necessarily reflect the most recent status of the jurisdiction’s AML/CFT regime. Following review, the FATF now also identifies Jordan, Mali, and Turkey.

With regards to the enhanced due diligence measures to be applied to the above-mentioned jurisdictions, subject persons should refer to Regulation 11(10) of the Prevention of Money Laundering and Funding of Terrorism Regulations.

Reminder: The FIAU has issued an interpretative note to guide subject persons as to how they are to adhere to their AML/CFT obligations in light of Malta being placed under increased monitoring by the FATF. The interpretative note may be downloaded from the ‘Publications & Consultation’ section of the FIAU’s website.

In the event that any further information is required, you may contact the FIAU on queries@fiaumalta.org

The Malta Financial Services Authority (“MFSA” or “the Authority”) has become aware of an entity operating under the name of PGB Limited which had an internet presence at https://pgblimlted.com/ however, the website is currently offline. This website is using the details of a Maltese Registered Company, PGB Limited (C 76509), which does not offer financial services. Fraudsters are using the details of this genuine company in an attempt to deceive the public.

The MFSA wishes to alert the public, in Malta and abroad, that https://pgblimlted.com/ is NOT a Maltese registered Company NOR licensed or otherwise authorised by the MFSA to provide any financial services which are required to be licensed or otherwise authorised under Maltese law. Additionally, the Authority confirms that https://pgblimlted.com/  has NO association with the Maltese registered company PGB Limited (C 76509).

The website https://pgblimlted.com/ therefore appears to be a clone of the legitimate entity and the public should therefore refrain from undertaking any business or transaction with the false entity.

Furthermore, information available to the MFSA suggests that https://pgblimlted.com/ is likely to be a scheme of dubious nature with a high risk of loss of money. The public should therefore refrain from undertaking any business or transactions with the above-mentioned entity.

The MFSA would like to remind consumers of financial services not to enter into any financial services transaction unless they have ascertained that the entity with whom the transaction is authorised to provide such services by the MFSA or another reputable financial services regulator. Investors are advised to be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media.

A list of entities licensed by the MFSA can be viewed on the official website of the MFSA at https://www.mfsa.mt/financial-services-register/.

For more information on clone companies please refer to the Scam Detection Guidelines issued by the MFSA at https://www.mfsa.mt/consumers/scams-warnings/typical-scams/. If you are a victim of a scam or think you might be dealing with an unauthorised entity or any other type of financial scam, first of all stop all transactions with the company and contact the MFSA at https://www.mfsa.mt/about-us/contact/  as soon as a suspicion arises.

Back in March, the Financial Intelligence Analysis Unit (“FIAU”) had issued a Consultation Document setting out proposals for several changes to the Implementing Procedures Part I (“IPs”). Today, on the 18th October 2021, the FIAU is issuing a revised version of the IPs, a copy of which may be accessed and/or downloaded from the FIAU’s website. The FIAU is also publishing a copy with tracked changes to show the changes made from the previously applicable version of the IPs.

The main changes being introduced are the following:

Adverse media

Additional guidance is given on assessing the relevance, reliability, and timing of adverse media, and on the evaluation of supervisory and regulatory information within the context of simplified due diligence.

For further information, subject persons may wish to consult Section 3.5.1(a) of the IPs.

Beneficial Ownership

The revised IPs provide additional guidance on determining the beneficial owner in certain situations, including when shares in a corporate customer are held in a trust, and when the customer is a state-owned enterprise (the latter on the basis of guidelines issued by the European Banking Authority). Guidance is also provided on how to carry out identification in cases where one or more of the beneficial owners are a corporate entity.

For further information, subject persons may wish to consult Sections 4.2.2.1 and 4.3.2.4 (iv) of the IPs.

The Agent

The revised IPs clarify some aspects relating to the identification and verification obligations applicable when dealing with agents, including by explaining:

• That when the agent is a body corporate, it is only necessary to carry out the identification and verification of the body corporate itself;
• That the obligation to verify the identity of directors or partners of a CSP when acting as agents of a customer is only triggered in respect to those directors or partners that are authorised to legally represent the body corporate, and who exercise such powers within the context of an occasional transaction or a business relationship.
• The verification requirements when the customer carries out financial business and empowers a significant number of individuals to act as signatories or carry out transactions on its behalf.

For further information, subject persons may wish to consult Section 4.3.3 of the IPs

Transaction Monitoring

The revised IPs provide further guidance on transaction monitoring obligations, namely by explaining that when the transactions carried out by a subject person on behalf of its customers are left to the subject person’s own discretion, the subject person is not expected to monitor the transactions that it is carrying out itself. This is applicable primarily within the context of discretionary portfolio management and investment management services offered to collective investment schemes or retirement schemes.* 

For further information, subject persons may wish to consult Section 4.5.2.1 of the IPs

Fund Administrators servicing Collective Investment Schemes

Guidance is given on adhering to record keeping obligations when there is a change in the fund administrator servicing a collective investment scheme, when the carrying out of AML/CFT obligations and the MLRO have been outsourced.*

For further information, subject persons may wish to consult Section 4.6.6.1 of the IPs

Ongoing Monitoring

• Guidance is provided on the checks that need to be carried out in the context of low risk business relationships, particularly to determine whether the relationship still merits being considered a low risk one.
• Guidance is also provided on the application of simplified due diligence when the customer is a collective investment scheme or a nominee/omnibus securities’ account.*

For further information, subject persons may wish to consult Section 4.8.1 of the IPs

MLRO

A number of changes have been made with respect to the criteria for appointing a Money Laundering Reporting Officer (“MLRO”), including that both executive and non-executive directors may be appointed as MLROs. In addition, guidance is given on:

• The aspects to be considered when a subject person considers appointing an MLRO that is located outside Malta;
• The assessments to be made in situations where the MLRO has additional functions/duties within the subject person, relating to the impact on the impartiality and independence of the MLRO, on time commitments, and on the possibility of conflicts of interest;
• Those situations that may present a conflict of interest due to personal, professional or economic ties, including the introduction of an element of proportionality which allows  subject persons to adopt mitigating measures rather than refusing or removing the (proposed) MLRO;

The IPs also clarify that there are no restrictions on the number of Designated Employees that can be appointed, in view of the variations in the nature and size of the subject person’s activity.

For further information, subject persons may wish to consult Section 5.1 and 5.2 of the IPs

Jurisdictional Risk Assessment

The jurisdictions that are to be considered for assessment purposes vary depending on the nature of the relevant activity or relevant business carried out by the subject person. Although the IPs already provide guidance on what the jurisdictional links may be, further guidance and more examples have provided. Guidance has also been provided in respect of the use of assessments carried out by third parties, in the form of criteria that need to be adhered to.

For further information, subject persons may wish to consult Section 8.1.2 and of the IPs

It should be noted that the above is only a summary of the main changes and therefore, all subject persons are to read the revised IPs to familiarize themselves with the most recent amendments.

*It should further be noted that certain provisions within these IPs are applicable only within the context of specific services or sectors (as indicated in the guidance itself). Until sector specific guidance for such sectors is issued, the provisions shall remain contained in the IPs.

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The Malta Financial Services Authority (“MFSA”) has become aware of an entity operating under the name of 247Bitcoin Trade Online (“the Entity”) which has an internet presence at https://247bitcointradeonline.com/. The entity claims to be “a Maltese directed investment services supplier that works under European and Maltese guidelines”.

It also purports to be “authorized and regulated by MFSA as a MiFID firm and holds a Category 3 Investment Services License”, making unauthorised use and reference to the registered address and other company details of a Maltese licensed company.

The MFSA wishes to alert the public that 247Bitcoin Trade Online is NOT a Maltese registered company NOR licensed or otherwise authorised by the MFSA to provide any investment services or other financial services which are required to be licensed or otherwise authorised under Maltese law. The public should therefore refrain from entering into any transactions or otherwise dealing with the above-mentioned entity on any matters falling within the parameters of the Investment Services Act, Chapter 370 of the Laws of Malta.

The MFSA would like to remind consumers of financial services not to enter into any financial services transaction unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the MFSA or another reputable financial services regulator.  Investors are advised to be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media.

A list of entities licensed by the MFSA can be viewed on the official website of the MFSA.

If you are a victim of a scam or think you might be dealing with an unauthorised entity or any other type of financial scam, first of all stop all transactions with the company and contact the MFSA as soon as a suspicion arises.

The Malta Financial Services Authority (“MFSA”) has become aware of an entity operating under the name of Citizen Crypto Mining FX (“the Entity”) which has an internet presence at https://www.citizenchoicecryptofx.com/. The entity claims to be “a Maltese directed investment services supplier that works under European and Maltese guidelines”.

It also purports to be “authorized and regulated by MFSA as a MiFID firm and holds a Category 3 Investment Services License”, making unauthorised use and reference to the registered address and other company details of a Maltese licensed company.

The MFSA wishes to alert the public that Citizen Crypto Mining FX is NOT a Maltese registered company NOR licensed or otherwise authorised by the MFSA to provide any investment services or other financial services which are required to be licensed or otherwise authorised under Maltese law. The public should therefore refrain from entering into any transactions or otherwise dealing with the above-mentioned entity on any matters falling within the parameters of the Investment Services Act, Chapter 370 of the Laws of Malta.

The MFSA would like to remind consumers of financial services not to enter into any financial services transaction unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the MFSA or another reputable financial services regulator.  Investors are advised to be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media.

A list of entities licensed by the MFSA can be viewed on the official website of the MFSA.

If you are a victim of a scam or think you might be dealing with an unauthorised entity or any other type of financial scam, first of all stop all transactions with the company and contact the MFSA as soon as a suspicion arises.

The Malta Financial Services Authority (“MFSA” or “the Authority”) has become aware of an entity operating under the name of CC Funds Capital (Malta) Limited (“the Entity”) which has an internet presence at https://ccfundscapital.ltd/. This website is making unauthorised use of details belonging to an MFSA licenced company CC Fund Services (Malta) Limited (C 45733) and claims to be recognised by the MFSA as a Fund Administrator that forms “part of the Calamatta Cuschieri Group”.

The Authority would like to inform the public that CC Funds Capital (Malta) Limited is NOT a Maltese registered company NOR licensed or otherwise authorised by the MFSA to provide any financial services which are required to be licensed or otherwise authorised under Maltese law. Additionally, the Authority confirms that https://ccfundscapital.ltd/ has NO association with CC Fund Services (Malta) Limited (C 45733).

The website https://ccfundscapital.ltd/ therefore appears to be a clone of the website of the legitimate entity and the public should therefore refrain from undertaking any business or transactions with the false entity on any matters falling within the parameters of the Investment Services Act, Chapter 370 of the Laws of Malta.

The Malta Financial Services Authority (“MFSA”) has become aware of an entity operating under the name of Alpha Capital Trade (Cyprus) Limited (“the Entity”) which has an internet presence at www.alphacapitaltrade.com.

The Entity purports to be recognised by the MFSA as a fund administrator and falsely claims to be associated with a Maltese licensed company. It also declares that its website (www.alphacapitaltrade.com) has been approved and issued by the same regulated entity.

The MFSA wishes to alert the public that Alpha Capital Trade (Cyprus) Limited is NOT a Maltese registered Company NOR licensed or otherwise authorised by the MFSA to provide any investment services or other financial services which are required to be licensed or otherwise authorised under Maltese law. The public should therefore refrain from entering into any transactions or otherwise dealing with the above-mentioned entity on any matters falling within the parameters of the Investment Services Act, Chapter 370 of the Laws of Malta.

The MFSA would like to remind consumers of financial services not to enter into any financial services transaction unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the MFSA or another reputable financial services regulator. Investors should also be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media.

A list of entities licensed by the MFSA can be viewed on the official website of the MFSA.

If you are a victim of a scam or think you might be dealing with an unauthorised entity or any other type of financial scam, stop all transactions with the company and contact the MFSA as soon as a suspicion arises.

The Malta Financial Services Authority (“MFSA” or “the Authority”) has become aware of an entity operating under the name of Money+Card Payment Institution Ltd/ Epayzz (“the Institution”) which has an internet presence at https://epayzz.com/. From information available to the MFSA, the Institution claims to be a regulated Financial Institution licensed to undertake payment services under the 2nd Schedule to the Financial Institutions Act (Cap 367 of the Laws of Malta).

By way of background on the mentioned Institution, on 10 June 2019 the Authority requested the Institution to wind up its business, as well as to appoint a liquidator. Upon appointment of a liquidator, the Authority has on 9 August 2019 withdrawn the licence issued to the Institution in terms of Article 6(1) of the Act. Further information on the Authority’s regulatory action taken against the Institution can be found on the official website of the MFSA.

Further to the above, the MFSA wishes to remind the public that Money+Card Payment Institution Ltd/ Epayzz is NO LONGER licensed or otherwise authorised by the MFSA to provide any trading activities or other financial services which are required to be licensed or otherwise authorised under Maltese law. The public should therefore refrain from entering into any transactions or otherwise dealing with the above-mentioned company or individual on any matters falling within the parameters of the Financial Institution Act (Chapter 376 of the Laws of Malta).

The MFSA would like to remind consumers of financial services not to enter into any financial services transaction unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the MFSA or another reputable financial services regulator. Investors should also be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media.

A list of entities licensed by the MFSA can be viewed on the official website of the MFSA.

The Financial Intelligence Analysis Unit (FIAU) would like to bring to the attention of all subject persons the consultation paper which has been published by the European Banking Authority (EBA) containing draft Guidelines on the role, tasks and responsibilities of anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officers.

The draft Guidelines seek to regulate the AML/CFT governance set-up at an EU level, setting expectations of the role, tasks, and responsibilities of the compliance officer and the management body of subject persons, and their interaction, including at group level. More information on the draft Guidelines, including the consultation paper, may be found on the EBA’s website or by clicking the button below.

Once published, the final version of these Guidelines will be binding. Subject persons are therefore being encouraged to read the draft Guidelines and submit their feedback.

This consultation runs until 2 November 2021, and any comments or feedback to the draft Guidelines can be sent directly to the EBA by clicking on the “send your comments” button on the EBA’S consultation page.

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The Financial Intelligence Analysis Unit (FIAU) would like to bring to the attention of subject persons that a newly dedicated portal dealing with the Cash Restriction policy has been created on the FIAU website. Therein, subject persons may find a list of Frequently Asked Questions (FAQs) on the Use of Cash (Restriction) Regulations, which came into force last March.

These FAQs highlight the main obligations found in the regulation, give examples and provide answers to the most common questions received, with the aim of making as clear as possible the obligations which emanate from the same. The intended audience for the said publication are traders, buyers and notaries and therefore it is not applicable to all subject persons.

FAQs