S.L. 373.1 Art. 2Interpretation and application. 

(1) In these regulations, unless the context otherwise requires:

"the Act" means the Prevention of Money Laundering Act;

"anti-money laundering and counter-funding of terrorism obligations" means the obligations imposed on subject persons and arising from the Act, these regulations or under any binding procedures, guidance, instructions, directives, orders or directions issued under the Act or these regulations;

"beneficial owner" means any natural person or persons who ultimately own or control the customer and, or the natural person or persons on whose behalf a transaction or activity is being conducted, and:

(a) in the case of a body corporate or a body of persons, the beneficial owner shall consist of any natural person or persons who ultimately own or control that body corporate or body of persons through direct or indirect ownership of twenty-five per centum (25%) plus one (1) or more of the shares or more than twenty-five per centum (25%) of the voting rights or an ownership interest of more than twenty-five per centum (25%) in that body corporate or body of persons, including through bearer share holdings, or through control via other means, other than a company that is listed on a regulated market which is subject to disclosure requirements consistent with European Union law or equivalent international standards which ensure adequate transparency of ownership information:

*Vide Regulation 6 of Legal Notice 82 of 2026. AND FUNDING OF TERRORISM Provided that a shareholding of twenty-five per (25%) plus one (1) share or more, or the holding of an centum ownership interest or voting rights of more than twenty-five (25%) in the customer shall be an indication of per centum direct ownership when held directly by a natural person, and of indirect ownership when held by one or more bodies corporate or body of persons or through a trust or a similar legal arrangement, or a combination thereof:

Provided further that if, after having exhausted all possible means and provided there are no grounds of suspicion, no beneficial owner in terms of this paragraph has been identified, subject persons shall consider the natural person or persons who hold the position of senior managing official or officials to be the beneficial owners, and shall keep a record of the actions taken and any difficulties encountered to determine who the beneficial owner is in terms of this paragraph.

(b) in the case of trusts the beneficial owner shall consist of:

(i) the settlor or settlors;

(ii) the trustee or trustees;

(iii) the protector or protectors, where applicable;

(iv) the beneficiaries or the class of beneficiaries as may be applicable; and

(v) any other natural person exercising ultimate control over the trust by means of direct or indirect ownership or by other means;

(c) in the case of legal entities such as foundations, and legal arrangements similar to trusts, the beneficial owner shall consist of the natural person or persons holding equivalent or similar positions to those referred to in paragraph (b);

''business relationship'' means a business, professional or commercial relationship between two or more persons, at least one of which is acting in the course of either relevant financial business or relevant activity, and which has, or is expected to have at the time when the contact is established, an element of duration;

''casino'' means any premises where gaming services are made available to the public by a gaming licensee and in relation to which a concession in terms of article 11(3)(a) of the Gaming Act has been granted, and "casino licensee" in these regulations shall be construed accordingly;

''collective investment scheme'', and ''units'' have the same meanings as are assigned to these terms respectively in the

Investment Services Act;

''company'' has the same meaning as is assigned to the term in the Companies Act;

"competent authority" means:

(a) any supervisory authority;

(b) the Comptroller of Customs when carrying out duties under any regulation that may be issued or are in force from time to time relating to the cross-border movement of cash and other financial instruments;

(c) the Commissioner for Tax and Customs;

(d) the Commissioner for Voluntary Organisations;

(e) the Asset Recovery Bureau;

(f) the Security Service;

(g) the Sanctions Monitoring Board; and

(h) the Internal Audit and Investigations Directorate;

"correspondent relationship" means:

(a) the provision of banking services by one bank as the correspondent to another bank as the respondent, including providing a current or other liability account and related services, such as cash management, international funds transfers, cheque clearing, payable-through accounts and foreign exchange services;

(b) the relationship between and among institutions carrying out relevant financial business and activities equivalent thereto, including where similar services to those under paragraph (a) are provided by a correspondent institution to a respondent institution, and including relationships established for securities transactions or funds transfers or relationships established for transactions in crypto-assets or transfers of crypto-assets;

"customer" means a legal or natural person who seeks to form, or who has formed a business relationship, or seeks to carry out an AND FUNDING OF TERRORISM occasional transaction with a person who is acting in the course of either relevant financial business or relevant activity;

"crypto-asset" means a crypto-asset as defined in point (5) of Article 3(1) of Regulation (EU) 2023/1114, except when falling within the categories listed in Article 2(3) and (4) of the said Regulation or when it otherwise qualifies as banknotes, coins, scriptural money or electronic money;

"crypto-asset service provider" means a crypto-asset service provider as defined in point (15) of Article 3(1) of Regulation (EU) 2023/1114, when performing one or more crypto-asset services as defined in point (16) of Article 3(1) of the said Regulation, with the exception of providing advice on crypto-assets as referred to in point (16)(h) of Article 3(1) of the said Regulation and except when falling within the categories listed in Article 2(2) of the said Regulation:

Provided that any person who is providing any of the crypto-asset services referred to above without the authorisation required in accordance with Regulation (EU) 2023/1114, when it should have been so authorised, shall equally be considered as a crypto-asset service provider for the purposes of these regulations:

Provided further that any person who on the 30th

December 2024 is licensed under the Virtual Financial Assets Act to provide one or more of the services listed in the Second Schedule to the said Act and benefits from any transitory period allowed for authorisation to be granted under Regulation (EU) 2023/1114, shall also be considered as a crypto-asset service provider for the duration of the said transitory period;

"electronic money" has the same meaning as is assigned to the term in the Financial Institutions Act, including electronic money tokens, but excludes monetary value that:

(a) is stored on instruments that can be used to acquire goods or services only in the premises used by the issuer or under a commercial agreement with the issuer either within a limited network of service providers or for a limited range of goods or services; or

(b) is used to make payment transactions executed by means of any telecommunication, digital or IT device, where the goods or services purchased are delivered to and are to be used through telecommunication, digital or IT device, provided that the telecommunication, digital or IT operator does not act only as an intermediary between the payment service user and the supplier of the goods and services;

"electronic money token" means a type of crypto-asset as defined in point (7) of Article 3(1) of Regulation (EU) 2023/1114;

''Financial Intelligence Analysis Unit'' has the same meaning as is assigned to the term in the Act;

''funding of terrorism'' means the conduct described in articles

328F and 328I both inclusive, of the Criminal Code;

"gaming licensee" means any person licensedin terms of the

Gaming Authorisation Regulations to provide a gaming service;

"gaming service" means making a licensable game which is a game of chance as defined in the Gaming Act, available for participation by players, and, without prejudice to the preceding phrase, "licensable game" shall have the same meaning as is assigned to it in the Gaming Definitions Regulations and the subsidiary legislation existing thereunder;

''group'' has the same meaning as is assigned to the term in the

Companies Act;

"long term insurance business" means the business of insurance of any of the classes specified in the Second Schedule to the Insurance Business Act;

"management body" means the board of directors or, where there is no board of directors, the body having equivalent powers and functions;

''non-reputable jurisdiction'' means any jurisdiction having deficiencies in its national anti-money laundering and counter funding of terrorism regime or having inappropriate and ineffective measures for the prevention of money laundering and the funding of terrorism, taking into account any accreditation, declaration, public statement or report issued by an international organisation which lays down internationally accepted standards for the prevention of money laundering and for combating the funding of terrorism or which monitors adherence thereto, or is a jurisdiction identified by the European Commission in accordance with Article 9 of Directive

(EU) 2015/849;

''occasional transaction'' means any transaction or service carried out or provided by a subject person for his customer, other than a transaction or service carried out or provided within a business relationship, and includes the following:

(a) a transaction amounting to fifteen thousand euro (€15,000) or more, carried out in a single operation or in AND FUNDING OF TERRORISM several operations which appear to be linked;

(b) a transfer of funds as defined under Regulation

(EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets and amending Directive (EU) 2015/849 (recast) which exceeds one thousand euro (€1,000) in a single operation or in several operations which appear to be linked;

(c) a transaction in cash amounting to ten thousand euro (€10,000) or more, carried out by a natural or legal person trading in goods in a single operation or in several operations which appear to be linked;

(d) a transaction amounting to two thousand euro (€2,000) or more, carried out by gaming or casino licensees in a single operation or in several operations which appear to be linked;

(e) a transaction amounting to ten thousand euro (€10,000) or more, carried out by a natural or legal person trading in works of art or acting as intermediary in the sale of works of art, in a single operation or in several operations which appear to be linked;

(f) a transaction, independently of the amount involved, carried out by a subject person whose activities are those referred to in paragraphs (l) and (n) of the definition "relevant financial business", including when these activities are carried out as established in paragraph (o) of the aforementioned definition;

(g) Repealed by Legal Notice 379 of 2024;

(h) the provision of material aid, assistance or advice on tax matters;

(i) the formation of a company, trust, foundation or a similar structure;

(j) the provision, by real estate agents, of intermediation services in relation to the letting of immovable property where the monthly rent amounts to ten thousand euro (€10,000) or more; and

(k) the storage, by free ports, of works of art the value of which is equal to or exceeds ten thousand euro (€10,000).

"politically exposed persons" means natural persons who are or have been entrusted with prominent public functions in or outside Malta, other than middle ranking or more junior officials. For the purposes of this definition the term "natural persons who are or have been entrusted with prominent public functions" means:

(a) Heads of State, Heads of Government, Ministers, Deputy or Assistant Ministers, and Parliamentary Secretaries;

(b) Members of Parliament or similar legislative bodies;

(c) Members of the governing bodies of political parties;

(d) Members of superior, supreme, and constitutional courts or of other high-level judicial bodies whose decisions are not subject to further appeal, except in exceptional circumstances;

(e) Members of courts of auditors or of the boards of central banks;

(f) Ambassadors, and high charges d’affaires ranking officers in the armed forces;

(g) Members of the administrative, management or supervisory boards of State-owned enterprises;

(h) Anyone exercising a function equivalent to those set out in paragraphs (a) to (f) within an institution of the European Union or any other international body; and

(i) Anyone entrusted with a prominent public function listed in an order issued by the Minister in terms of article 12(5) of the Act from time to time, or included in any other equivalent list issued by any other jurisdiction or international organisation.

"real estate agent" means any person who is licensed or required to be licensed as a property broker or as a real estate agent under the

Property Market Agency Act:

Provided that where two (2) or more real estate agents or two (2) or more property brokers are authorised in accordance with the Property Market Agency Act to carry out their activity through a partnership as defined under the said Act, for the purposes of these regulations the real estate agent shall be deemed to be the partnership;

"Regulation (EU) 2023/1114" means Regulation (EU) 2023/1114 AND FUNDING OF TERRORISM of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/ 2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937;

''relevant activity'' means the activity of the following legal or natural persons when acting in the exercise of their professional activities:

(a) auditors, external accountants and tax advisors, including when acting as provided for in paragraph (c) and any other person that undertakes to provide, directly, or through other persons to whom he is related, material aid, assistance or advice on tax matters;

(b) real estate agents , including when acting as intermediaries in relation to the letting of immovable property where the monthly rent amounts to ten thousand euro (€10,000) or more;

(c) notaries and other independent legal professionals when they participate, whether by acting on behalf of and for their client in any financial or real estate transaction or by assisting in the planning or carrying out of transactions for their clients concerning the –

(i) buying and selling of real property or business entities;

(ii) managing of client money, securities or other assets, unless the activity is undertaken under a licence issued under the provisions of the Investment Services Act;

(iii) opening or management of bank, savings or securities accounts;

(iv) organisation of contributions necessary for the creation, operation or management of companies;

(v) creation, operation or management of companies, trusts, foundations or similar structures, or when acting as a trust or company service provider;

(d) trust and company service providers;

(e) nominee companies holding a warrant under the

Malta Financial Services Authority Act and acting in relation to dissolved companies registered under the said Act;

(f) casino licensees;

(g) gaming licensees;

(h) any natural or legal person trading in goods, but only where a transaction involves payment in cash in an amount equal to ten thousand euro (€10,000) or more whether the transaction is carried out in a single operation or in several operations which appear to be linked;

(i) any natural or legal person trading in works of art or acting as intermediary in the sale of works of art, including when this is carried out by art galleries, auctioneers and freeports, where the value of the transaction or a series of linked transactions amounts to ten thousand euro (€10,000) or more; and

(j) free ports when storing works of art the value of which amounts to ten thousand euro (€10,000) or more, or when trading in works of art or acting as intermediaries in the sale of works of art as envisaged under paragraph (i);

''relevant financial business'' means –

(a) any business of banking carried on by a person or institution who is for the time being licensed, or required to be licensed, under the provisions of the Banking Act;

(b) any activity of a financial institution carried on by a person or institution who is for the time being licensed, or required to be licensed, under the provisions of the Financial

Institutions Act;

(c) any long term insurance business other than business of reinsurance carried on by a person or institution who is for the time being authorised, or required to be authorised, under the provisions of the Insurance Business Act;

(d) any insurance intermediary activities carried out by an insurance intermediary or by a tied insurance intermediary related to long-term insurance business which person or institution is enrolled or required to be enrolled under the provisions of the Insurance Distribution Act, other than a natural person who is registered or enrolled and acts on behalf of a tied insurance intermediary or a person or institution enrolled as a tied insurance intermediary that does not collect premiums, or other amounts intended for the policyholder or the beneficiary; AND FUNDING OF TERRORISM

(e) any long term insurance business other than business of reinsurance carried on by a person in accordance with the Insurance Business (Captive Insurance Undertakings and Captive Reinsurance Undertakings) Regulations, by a cell company in accordance with the provisions of the Companies

Act (Cell Companies Carrying on Business of Insurance)

Regulations or by an incorporated cell company and an incorporated cell in accordance with the provisions of the

Companies Act (Incorporated Cell Companies Carrying on Business of Insurance) Regulations;

(f) investment services carried on by a person or institution licensed or required to be licensed under the provisions of the Investment Services Act;

(g) administration services to collective investment schemes provided by a person or institution recognised or required to be recognised under the provisions of the

Investment Services Act other than administration services provided by recognised incorporated cell companies in accordance with the Companies Act (Recognised Incorporated

Cell Companies) Regulations;

(h) a collective investment scheme marketing its units or shares, licensed, recognised or notified, or required to be licensed, recognised or notified, under the provisions of the

Investment Services Act;

(i) any activity other than that of a retirement scheme or a retirement fund, carried on in relation to a retirement scheme, by a person or institution licensed or required to be licensed under the provisions of the Retirement

Pensions Act and for the purpose of this paragraph, ''retirement scheme'' and ''retirement fund'' shall have the same meaning as is assigned to them in the Retirement Pension Act;

(j) any activity of a regulated market and that of a central securities depository authorised or required to be authorised under the provisions of the Financial Markets Act;

(k) safe custody services provided by any person or institution not covered under paragraph (a) or (f);

(l) the activity of a crypto-asset service provider;

(m) Repealed by Legal Notice 379 of 2024;

(n) the issue of electronic money tokens for offer to the public as provided for under Title IV of Regulation (EU) 2023/1114;

(o) any activity under paragraphs (a) to (n) carried out by branches established in Malta and whose head offices are situated outside Malta

"self-hosted address" means a self-hosted address as defined in point (20) of Article 3 of Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets and amending Directive (EU) 2015/849 (recast);

"senior management" means an officer or employee with sufficient knowledge of the subject person's money laundering and terrorist financing risk exposure and sufficient seniority to take decisions affecting its risk exposure, and need not be a member of the management body;

''shell institution'' means an institution carrying out activities equivalent to relevant financial business, incorporated in a jurisdiction in which it has no physical presence, involving meaningful mind and management, and which is not affiliated with a regulated financial group;

''subject person'' means any natural or legal person, as well as any other body or association of persons, carrying out either relevant financial business or relevant activity;

''supervisory authority'' means –

(a) the Central Bank of Malta;

(b) the Malta Financial Services Authority;

(c) the Malta Business Registry;

(d) the Malta Gaming Authority;

(e) the Accountancy Board;

(f) the Trade Licensing Unit limitedly to its licensing function in relation to dealers in precious metals and stones; and

(g) the Property Market Agency.

''terrorism'' means any act of terrorism as defined in article

328A of the Criminal Code;

''trust and company service provider'' means any natural or legal person who:

(a) provides trustee or other fiduciary services, whether authorised or required to be authorised, in terms of the

AND FUNDING OF TERRORISM Trusts and Trustees Act, other than persons acting as trustees in terms of article 43A of the said Act;

(b) acts as a company service provider, whether registered or authorised, or required to be registered or authorised, in accordance with the Company Service Providers Act, including any natural or legal person referred to in paragraph (a) acting as a company service provider, whether notified or required to be notified in accordance with the Company Service Providers Act;

(c) arranges, by way of business, for another person to act as a trustee of an express trust or a similar legal arrangement;

(d) arranges, by way of business, for another person to act as a fiduciary shareholder for another person other than a company listed on regulated market that is subject to disclosure requirements in conformity with the Financial Markets Act or subject to equivalent international standards.

"work of art" means an original, unique and tangible object of any kind or material that is created or executed by hand or a limited edition reproduction thereof, and which is considered to have an imaginative, expressive and aesthetic function, value or appeal, irrespective of artistic quality, and provided that the said criteria are met includes the following:

(a) paintings, drawings, etchings and decorative plaques;

(b) engravings, lithographs or other prints;

(c) works of sculpture or statuary;

(d) tapestries;

(e) photographs printed and signed by the photographer, including limited edition prints made from the exposure; and

(f) ceramic works.

(1a) Without prejudice to the provisions of sub-regulation (1), unless the context otherwise requires, words and phrases used in these regulations shall have the same meaning as assigned to them in the Act.

(2) Where these regulations are extended to professions and other categories of undertakings other than those referred to in this regulation and whose activities are particularly likely to be used for the purposes of money laundering or the funding of terrorism, these regulations shall apply in full or in part as may be established by such extension in accordance with the provisions of the Act, and the Financial Intelligence Analysis Unit shall inform the European Commission accordingly.

(3) The Financial Intelligence Analysis Unit, in conjunction with the relevant supervisory authority, may require entities which issue electronic money, or provide payment services, or qualify as crypto-asset service providers, and which:

(a) have their head office situated in another Member State; and

(b) are established in Malta in forms other than a branch, to appoint a central contact point in Malta to ensure, on behalf of the appointing entity, compliance with these regulations and to facilitate the monitoring of such compliance, including by providing the Financial Intelligence Analysis Unit and supervisory authorities with information and documents upon request.

(4) These regulations shall also apply where any ‘relevant financial business’ or any ‘relevant activity’ as defined in this regulation is undertaken or performed through the Internet or other electronic means.

(5) The Financial Intelligence Analysis Unit shall cooperate with the European Supervisory Authorities for the purposes of Directive (EU) 2015/849 and it shall provide the European Supervisory Authorities with any information which is necessary to carry out their duties under Directive (EU) 2015/849 and under Regulation (EU) No 1093/2010, Regulation (EU) No 1094/2010 and Regulation (EU) No 1095/ 2010.