Cap. 373 Art. 26Compliance.

(1) The Unit shall be responsible to ensure that subject persons comply with the provisions of this Act and any regulations made thereunder in so far as these are applicable to them.

(2) The Unit shall carry out its responsibilities under sub-article

(1) on a risk sensitive basis and, in so doing, the Unit may:

(a) authorise any of its officers, employees or agents, or any expert engaged under article 26A, on producing evidence of his authority, to require any subject person to provide him forthwith with such information or documentation as may be required in order to monitor compliance with the provisions of this Act and any regulation made thereunder and to answer any questions as the Unit may reasonably require for the performance of its functions under sub-article (1), and such officer, employee, agent or expert may demand access to any data, information or documentation, whether or however stored or held, that the Unit considers relevant to monitor compliance, and may take copies of such data, information or documentation whether digital or otherwise;

(b) by notice in writing served on a subject person require that person to produce, within the time and at the place as may be specified in that notice, any documents as may be so specified in the notice provided such documents are reasonably required by the Unit for the performance of its functions under this Act;

(c) carry out on-site examinations on subject persons with the aim of monitoring compliance with the provisions of this Act and any regulations made thereunder;

(d) make notes, take copies or recordings, whether digital or otherwise, of any data, information or documentation obtained or accessed by the Unit, or of any answers to questions posed by the Unit in the exercise of its powers under this sub-article.

(3) For the purposes of pursuing its responsibilities under sub-

article (1) on a risk-sensitive basis the Unit shall:

(a) ensure that is has a clear understanding of the money laundering and funding of terrorism risks to which Malta is exposed;

(b) take any necessary action and have access to any information or documentation that is necessary to assess and determine the money laundering and funding of terrorism risk profile of subject persons;

(c) ensure that the risk profile of subject persons is reviewed on a regular basis and when there are significant developments in the management and operations of subject persons, and kept up-to-date;

(d) ensure that the frequency and intensity of on-site and off-site supervision is determined on the basis of:

(i) the risk profile of subject persons, as assessed and determined by the Unit; and

(ii) the risks of money laundering and funding of terrorism to which Malta is exposed; and

(e) when carrying out on-site and off-site supervision, take into account the degree of discretion afforded to subject persons, under this Act, any regulations issued thereunder and procedures and guidance issued by the Unit, to adopt a risk-based approach to the implementation of their anti-money laundering and counter-funding of terrorism obligations envisaged under this Act, the said regulations, procedures and guidance.

(4) Where the data, information or documentation required, sought to be accessed or demanded under sub-article (2) are not provided, the Unit may require the subject person to state, in writing, why such data, information or documentation, or access, could not be provided.

(5) Subject to the provisions of article 27, a supervisory authority is, for the purposes of sub-article (2)(a), considered to be an agent of the Unit.