The Council of the European Union adopts new rules on markets in crypto assets (MiCA):

On the 31st of May 2023, the Council of the European Union adopted a regulation on markets in crypto assets (MiCA) (Regulation (EU) 2023/1114). This Regulation introduces a harmonised regulatory framework in the European Union for crypto-assets, crypto-assets issuers, and crypto-asset service providers.

MiCA Regulation aims to prevent the misuse of the crypto industry for the purposes of money laundering and financing of terrorism. It also protects investors and preserves financial stability. In addition, it covers issuers of utility tokens, asset referenced tokens and ‘stablecoins’, as well as service providers such as trading venues and the wallets where crypto assets are held.

The MiCA Regulation shall apply from the 30th of December 2024. This is without prejudice to certain derogations indicated in Article 149 of the said Regulation.

The MiCA Regulation was published in the EU’s Official Journal of the 9th of June 2023 and it can be accessed from here.

Regulation on information accompanying transfers of funds and certain crypto assets and amending Directive (EU) 2015/849 (recast):

The Council of the European Union adopted a new Regulation on information accompanying the transfers of funds, by extending the scope of the rules to transfers of crypto assets (Regulation (EU) 2023/1113).

Under the new rules, crypto asset service providers are obliged to collect and make accessible certain information about the sender and beneficiary of the transfers of crypto assets they operate, regardless of the amount of crypto assets being transacted. This ensures the traceability of crypto asset transfers to be able to better identify possible suspicious transactions and block them.

This legislation is set to harmonise the crypto Travel Rule requirements across the European Union, as well as ensuring financial transparency on exchanges in crypto assets. Furthermore, it will provide the EU with a solid framework that complies with international standards on the exchange of crypto assets, thereby ensuring that these will not be used for criminal purposes. It should be noted that these updated rules will be supplemented by guidelines issued by the European Banking Authority.

This new Regulation will apply as of the 30th of December 2024, when Regulation 2015/847 on “Information accompanying transfers of funds” will be repealed.

Regulation (EU) 2023/1113 has been published in the EU’s Official Journal of the 9th of June 2023 and it can be accessed from here.

Council Implementing Regulation (EU) 2023/1098 of 5 June 2023 implementing Regulation (EU) 2020/1998 concerning restrictive measures against serious human rights violations and abuses

On 05 June 2023, the Council of the EU added nine persons to the list of natural and legal persons, entities and bodies subject to restrictive measures in Annex I to Regulation (EU) 2020/1998.

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Council Implementing Regulation (EU) 2023/1046 of 30 May 2023 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine

On 17 March 2014, the Council adopted Regulation (EU) No 269/2014.

In view of the gravity of the situation, the Council considers that two persons responsible for actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine should be added to the list of natural and legal persons, entities and bodies subject to restrictive measures set out in Annex I to Regulation (EU) No 269/2014.

Regulation (EU) No 269/2014 has therefore been amended accordingly.

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For the latest updates regarding sanctions specifically imposed under the Ukraine Territorial Integrity Regime, please follow this link.

Security Council Extends Sanctions on South Sudan for One Year, Adopting Resolution 2683 (2023)

The Security Council today extended for one year the sanctions regime imposed on South Sudan, including assets freezes, travel bans and an arms embargo, numerous members stressed that instead of sanctions, the country needs a carefully managed support system to facilitate its transitional journey and overcome its security issues.

Resolution 2683 (2023) was adopted by a vote of 10 in favour (Albania, Brazil, Ecuador, France, Japan, Malta, Switzerland, United Arab Emirates, United Kingdom and United States) to none against, with 5 abstentions (China, Gabon, Ghana, Mozambique and the Russian Federation).

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Security Council 751 Sanctions Committee Adds One Entry to Its Sanctions List

On 26 May 2023, the Security Council Committee pursuant to resolution 751 (1992) concerning Al-Shabaab approved the addition of the entry specified below to its Sanctions List of individuals and entities subject to the measures imposed by the Security Council and adopted under Chapter VII of the Charter of the United Nations.

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Council Implementing Regulation (EU) 2023/1045 of 30 May 2023 implementing Regulation (EU) 2023/888 concerning restrictive measures in view of actions destabilizing the Republic of Moldova

On 28 April 2023, the Council adopted Regulation (EU) 2023/888.

In view of the situation in the Republic of Moldova, the Council considers that five persons should be added to the list of natural and legal persons, entities and bodies set out in Annex I to Regulation (EU) 2023/888.

Regulation (EU) 2023/888 has therefore been amended accordingly.

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Audited Financial Statements, Auditor's Management Letter & Auditor's Player Funds and Gaming Revenue Declarations

Submission of Audited Financial Statements

The Malta Gaming Authority (“MGA”) is hereby reminding all licensees of the requirement to submit their Audited Financial Statements within six (6) months from the end of their financial year as stipulated in Article 41 of the Gaming Authorisations and Compliance Directive (Directive 3 of 2018). Moreover, licensees are reminded to ensure that the Audited Financial Statements:

• Are prepared in accordance with International Financial Reporting Standards;

• For B2C licensees providing gaming services by remote means, illustrate the Player Funds Account Balance separately under the Cash and Cash Equivalents Note to the Audited Financial Statements as well as illustrate player funds under the Trade and Other Payables Note to the Audited Financial Statements;

• Are accompanied by the Directors’ Report which shall be drawn up in accordance with Article 177 of the Companies Act (CAP. 386 of the Laws of Malta). This requirement shall also apply to companies defined as “small” under the Companies Act.

Applicability

The requirement to submit the Audited Financial Statements applies to:

• All companies licensed by the MGA as at the Audited Financial Statements due date. This applies irrespective of whether or not the company was licensed by the MGA during the period covered by the financial statements.

• All companies covered by a Corporate Group Licence.

Submission of Auditor’s Management Letter

Following completion of the statutory audit engagement, licensees are reminded to submit a copy of the auditor’s management letter by not later than nine (9) months from the licensee’s financial year end. Same applicability employed for Audited Financial Statements also applies to the Auditor’s Management Letter.

Submission of the Auditor’s Player Funds and Gaming Revenue Declarations

Licensees are also reminded to make the necessary arrangements with their auditors to prepare the Agreed-Upon Procedures Report drawn up in accordance with ISRS 4400 (Revised) Agreed-Upon Procedures Engagements (click here for more information) which are distinct from the statutory auditor’s report and are thus subject to separate terms of engagement.

Change in Due Date

The said declarations shall be submitted to the MGA within nine (9) months from the end of the licensee’s financial year. This shall apply for the year ending December 2022 as well as for any subsequent years. In this regard, the licensee’s Player Funds and Gaming Revenue Declarations for the financial year end December 2022 shall be submitted by 30 September 2023. For the avoidance of doubt, the Audited Financial Statements for the financial year end December 2022 shall still be submitted by 30 June 2023.

Applicability

The requirement to submit the Player Funds and Gaming Revenue Declarations applies to all companies licensed by the MGA, except for:

• B2B licensees;

• Companies covered by a Corporate Group Licence, other than the main licensee which shall still be required to submit the declarations.

Submission through the Licensee Relationship Management System

All documentation shall be submitted through the Licensee Relationship Management System which can be accessed here. In this regard, licensees will be required to upload the documentation by selecting either the Audited Financial Statements, the Auditor Player Funds & Gaming Revenue Declaration or the Auditor’s Management Letter option which will be visible in Draft mode within the licensee’s timeline.

Licensees are kindly requested to contact the MGA by sending an email to pfr.mga@mga.org.mt for any clarification or additional guidance.

Council Implementing Regulation (EU) 2023/1027 of 25 May 2023 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria

On 18 January 2012, the Council adopted Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria.

On the basis of a review of those measures, the entries for two deceased individuals should be deleted from the list of natural and legal persons, entities or bodies set out in Annex II to Regulation (EU) No 36/2012. The entries for 19 natural persons in that list should be updated and amended.

Annex II to Regulation (EU) No 36/2012 has therefore been amended accordingly.

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*Registration will open tomorrow, Wednesday 24th May 2023, at 10:00am.*

The Financial Intelligence Analysis Unit (FIAU), in collaboration with the Malta Financial Services Authority (MFSA), is organising a full day, in-person training session on transaction monitoring. This event is of particular interest to subject persons which process payments for and on behalf of customers, including but not limited to, banks and other depository institutions, electronic money (e-money) institutions, payment service providers (PSPs), and merchant acquiring companies.

The training session will be delivered in-person (live) and is limited to 150 participants. To accommodate as many subject persons as possible, we kindly request that each entity registers a maximum of two participants.

The training session is intended to provide subject persons with a detailed understanding of the obligation of transaction scrutiny and equip them with practical guidance on carrying out effective transaction monitoring. The training will cover various areas, including the implementation of effective transaction monitoring measures and systems, the establishment and testing of detection rules, the management of alerts, as well as pre- and post-transaction monitoring. The agenda below provides an overview of the topics that will be covered.

The session will be interactive, featuring case studies and a panel discussion. The panel will include professionals from both the private sector and regulatory authorities, who will share their experiences, discuss challenges faced, and provide best practices for effective transaction monitoring.

Certificates of attendance will be emailed to all participants.

*Kindly note that photographs may be taken during the event and subsequently published on social media platforms and websites. By registering, you consent to the use of such media.

Learn more here.

Council Implementing Regulation (EU) 2023/986 of 22 May 2023 implementing Regulation (EU) No 359/2011 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Iran

On 12 April 2011, the Council adopted Regulation (EU) No 359/2011.

On 25 September 2022, the High Representative of the Union for Foreign Affairs and Security Policy issued a declaration on behalf of the Union deploring the widespread and disproportionate use of force by the Iranian security forces against non-violent protestors, noting that it had resulted in the loss of lives as well as a large number of injuries. The declaration also spelled out that those responsible for the killing of Mahsa Amini must be held accountable, and called on the Iranian authorities to ensure transparent and credible investigations to clarify the number of deaths and arrests, to release all non-violent protestors and to provide due process to all detainees. Furthermore, the declaration stressed that Iran’s decision to severely restrict internet access and block instant messaging platforms blatantly violates freedom of expression. Finally, the declaration stated that the Union will consider all the options at its disposal to address the killing of Mahsa Amini and the way Iranian security forces have responded to the ensuing demonstrations.

In this context, and in line with the Union’s commitment to address all issues of concern with Iran, including the human rights situation, as confirmed in the Council conclusions of 12 December 2022, five persons and two entities should be included in the list of natural and legal persons, entities and bodies subject to restrictive measures set out in Annex I to Regulation (EU) No 359/2011.

Regulation (EU) No 359/2011 has therefore been amended accordingly.

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