Cap. 365 Art. 17Freezing measures.

(1) Notwithstanding the provisions of this Act or of any other law, when regulations are made under article 3(4)(a) or when a United

Nations Security Council Resolution or a Regulation of the Council of the European Union is published imposing freezing measures on property of a person or entity designated by the said Resolution or Regulation or in annexes thereto, such regulations, Resolution or Regulation shall immediately upon publication be tantamount to a freezing order having the force of law in Malta.

(2) A freezing order as is mentioned in sub-article (1) shall have the effect of:

(a) attaching, without delay or prior notice, all property due or pertaining or belonging to the designated person or entity, or that is wholly or jointly owned or controlled, directly or indirectly, by the designated person or entity;

(b) attaching, without delay or prior notice, all property that is derived or generated from property that is owned or controlled, directly or indirectly, by the designated persons or entities;

(c) attaching without delay or prior notice all property of persons and entities acting on behalf of or at the direction of the designated person or entity;

(d) prohibiting the transfer, conversion, movement, pledging, hypothecating or otherwise disposing of any property under paragraphs (a) to (c);

(e) prohibiting any Maltese citizen or any person or entity located in Malta from making property, or financial services or other related services available, directly or indirectly, wholly or jointly, to or for the benefit of a designated person or entity; or an entity owned or controlled, directly or indirectly, by a designated person or entity; or to any person or entity acting on behalf of, or at the direction of, a designated person or entity, unless licensed, authorised or notified in accordance with the relevant United Nations Security Council Resolution or Regulation of the Council of the European Union or order issued under article 3(4)(a).

(3) Such order shall become operative and binding on all third parties immediately upon the publication of the regulations, Resolution or Regulation mentioned in sub-article (1), and shall remain in force:

(a) in the case of an order made by regulations under article 3(4)(a), until it is revoked according to the provisions of article 3(4)(a)(vi); and

(b) in the case of a Regulation of the Council of the European Union or a United Nations Security Council Resolution, until the delisting of the designated person or entity is made by the United Nations Security Council or by the Council of the European Union, as the case may be.

(4) Where any money is or becomes due to a designated person or entity from any person while a freezing order under this article is in force, such money shall, unless otherwise directed in that order, be deposited in a bank to the credit of the designated person or entity.

(5) When such order ceases to be in force as provided in sub-article (3)(b), a note of cancellation of the registration of that order shall be entered in the Public Registry.

(6) Any legal or natural person conducting a relevant activity or relevant financial business as defined in the Prevention of Money

Laundering and Funding of Terrorism Regulations shall be required to:

(a) regularly check the list of designations by the United Nations, the European Union, and the Board, and to screen their client databases against those lists on a regular basis and immediately after a change to any of these lists occurs;

(b) have in place and effectively implement internal controls and procedures to ensure compliance with the obligations arising from this Act and any relevant United Nations or European Union Resolutions or regulations; and

(c) immediately notify the Board in case targeted property is identified, and of the actions taken in relation to such property in compliance with the requirements under this Act, including in relation to any attempted transactions.

(7) Any legal or natural person conducting a relevant activity or relevant financial business as defined in the Prevention of Money Laundering and Funding of Terrorism Regulations shall be prohibited from informing the customer or any third party in advance that a freezing measure pursuant to this Act is to be applied.