ACT No. I of 2020 AN ACT to amend the Prevention of Money Laundering Act, Cap.

I assent.

(L.S.)

GEORGE VELLA

President

7th February, 2020

ACT No. I of 2020

AN ACT to amend the Prevention of Money Laundering Act, Cap.

373. BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same as follows:-

(1) The short title of this Act is the Prevention of Money

Laundering (Amendment) Act, 2020, and this Act shall be read and

construed as one with the Prevention of Money Laundering Act,

hereinafter referred to as "the principal Act".

(2) The provisions of this Act shall come into force on such date as

the Minister responsible for finance may by notice in the Gazette

establish, and different dates may be so established for different

provisions and different purposes of the Act.

Article 12 of the principal Act shall be amended as follows

Amendment of

article 12 of the

principal Act.

(a) sub-article (5) thereof shall be renumbered as sub-

article (6); and

(b) immediately after sub-article (4) thereof, there shall

be added the following new sub-article

"(5) The Minister shall, acting on the advice of the

committee referred to in article 12A, designate, by order in

the Gazette, those public functions in Malta and those held

within international organisations accredited in Malta,

which are to be considered as prominent public functions

for the purpose of any regulations issued under this Act,

and the list of any such functions shall be reviewed and

updated from time to time

Provided that any order issued in terms of this sub-

article shall be made available to the European Commission

upon publication in the Gazette.".

Article 13A of the principal Act shall be amended as follows

Amendment of

article 13A of

the principal

(a) in sub-article (3) thereof, the words "and such an

Act.

appeal shall be regulated by the applicable provisions of the

Code of Organization and Civil Procedure" shall be substituted

by the words "and, saving the provisions of this article, such an

appeal shall be regulated by the applicable provisions of the

Code of Organization and Civil Procedure";

(b) sub-article (4) thereof shall be renumbered as sub-

article (6); and

(c) immediately after sub-article (3) thereof there shall

be added the following new sub-articles

"(4) The Court of Appeal (Inferior Jurisdiction)

shall, without delay, set down the appeal for hearing at an

early date, which date shall in no case be later than three

(3) months from the date of the filing of the appeal.

(5) The Court of Appeal (Inferior Jurisdiction) shall

hear the appeal which shall be decided within six (6) months

from the date fixed for the original hearing of the appeal, and

no adjournment beyond the said six (6) months shall be

granted except either with the consent of the appellant and

the respondent or for an exceptional reason to be recorded

by the court, and such adjourned date shall not be later than

that justified by any such reason.".

In sub-article (2) of article 13B of the principal Act, the words

"the appeal is decided, deserted or withdrawn," shall be substituted by

the words "is subsequently confirmed in whole or in part,".

Article 13C of the principal Act shall be substituted by the

wara l-kliem " memoranda ta’ intendiment jew kull ftehim ieħor"

għandha tiżdied il-kelma "fosthom".

L-artikolu 16 tal-Att prinċipali għandu jiġi emendat kif ġej

(a)

fis-subartikolu (1) tiegħu

(i) minnufih wara l-kliem "tixrid ta’ informazzjoni

bil-għan li" għandhom jiżdiedu l-kliem "jipprevjeni,

jinkixef u b’mod effettiv";

(ii) fis-subparagrafu (i) tal-paragrafu (k) minnufih

wara l-kliem "fil-paragrafi (a) u (b)" għandhom jiżdiedu l-

kliem "irrispettivament min-natura jew l-istatus tagħhom";

(iii) fis-subparagrafu (ii) tal-paragrafu (k) il-kliem

"jew ma’ kull awtorità sorveljanti barra minn Malta li

huwa jikkonsidra bħala li jkollha funzjonijiet ekwivalenti

jew simili għal awtorità sorveljanti f’Malta, u" għandhom

jiġu sostitwiti bil-kliem "jew ma’ kull awtorità oħra jew

korp ieħor li jkollhom funzjonijiet ta’ sorveljanza jew

regolatorji barra minn Malta, meta l-Korp ikun tal-opinjoni

li tali koperazzjoni u skambju ta’ informazzjoni jassisti fil-

monitoraġġ tal-osservanza minn persuni suġġetti jew

persuni oħra li jwettqu attivitajiet ekwivalenti barra minn

Malta, ta’ obbligi kontra money laundering u kontra

finanzjar ta’ terroriżmu jew ta’ leġiżlazzjoni oħra speċifika

għall-attivitajiet jew servizzi tagħhom, jew biex jiġi żgurat

li s-settur finanzjarju u setturi jew professjonijiet rilevanti

oħra ma jiġux użati għal għanijiet kriminali, jew biex tiġi

salvagwardjata l-integrità tagħhom;";

(iv) fil-paragrafu (l) il-kliem "filwaqt li tkun qed

twettaq xi waħda mill-funzjonijiet tagħha." għandhom jiġu

sostitwiti bil-kliem "filwaqt li tkun qed twettaq xi waħda

mill-funzjonijiet tagħha;" u minnufih wara għandhom

jiżdiedu l-paragrafi ġodda li ġejjin

"(m)

li

jossorvelja

konformità

ma’

restrizzjonijiet fuq ħlas bi flus kontanti li jistgħu jiġu

introdotti minn żmien għal żmien taħt dan l-Att; u

(n)

li jistabbilixxi, jiġġestixxi u jamministra

mekkaniżmi

awtomatizzati

ċentralizzati

li

jippermettu l-ġbir ta’ data u informazzjoni dwar kull

persuna li jkollha jew tikkontrolla kontijiet ta’ ħlas

jew bankarji, u dwar kull persuna li tagħmel użu

minn servizzi ta’ kustodja fis-sigurtà pprovduti minn

xi bank.";

(b) is-subartikolu (2) tiegħu għandu jiġi enumerat mill-

ġdid bħala s-subartikolu (3); u

(ċ) minnufih wara s-subartikolu (1) tiegħu, għandu

jiżdied is-subartikolu ġdid li ġej

"(2) Għall-finijiet tat-twettiq ta’ kwalunkwe mill-

funzjonijiet tiegħu taħt dan l-Att jew regolamenti oħra

maħruġin taħtu, il-Korp ikollu s-setgħa li jimponi miżati u

ħlasijiet, inkluż miżati u ħlasijiet li jkopru l-ispejjeż tal-

Korp sabiex jingaġġa xi espert hekk kif previst fl-artikolu

26A.".

L-artikolu 19 tal-Att prinċipali għandu jiġi emendat kif ġej

Emenda tal-

artikolu 19 tal-

Att prinċipali.

(a) fil-paragrafu (a) tas-subartikolu (1) tiegħu, il-kliem

"erba’ membri li jinħatru" għandhom jiġu sostitwiti bil-kliem

"ħames membri li jinħatru"; u

(b)

is-subartikolu (2) tiegħu għandu jiġi sostitwit b’dan li

"(2) Il-Ministru għandu jaħtar il-ħames membri

msemmija fis-subartikolu (1)(a) billi jagħżel membru

wieħed minn kull waħda minn ħames listi, b’kull lista jkun

fiha mill-inqas tliet persuni nominati rispettivament mill-

Gvernatur tal-Bank Ċentrali ta’ Malta, miċ-Chairman tal-

Awtorità għas-Servizzi Finanzjarji ta’ Malta, miċ-

Chairperson tal-Awtorità ta’ Malta dwar il-Logħob, mill-

Kummissarju tal-Pulizija u mill-Kummissarju tat-Taxxi.".

L-artikolu 23 tal-Att prinċipali għandu jiġi sostitwit b’dan li

(1) Any administrative penalty imposed by

the Unit in terms of rules and regulations made under

article 13, and which exceeds fifty thousand euro

(€50,000), shall be subject to publication on the

official website of the Unit, together with any other

administrative measure imposed by the Unit in

conjunction with that administrative penalty and the

publication shall take place within five (5) working

days from the date of notification of the administrative

penalty to the subject person

Provided further that where the administrative

penalty has been appealed in terms of article 13A, the

Unit shall, without undue delay, publish information

on the appeal, and thereafter on the status of the appeal

and the outcome thereof, including information on any

decision of the Court of Appeal (Inferior Jurisdiction)

which alters or revokes in whole or in part that

administrative penalty in question.

(2) The Unit shall publish on an anonymous basis

the following administrative measures and penalties

imposed by the Unit in terms of rules and regulations

made under article 13

(a) administrative penalties that do not

exceed fifty thousand euro (€50,000); and

(b) administrative measures imposed by

the Unit, except those envisaged under sub-

article (1).

(3) Notwithstanding the provisions of sub-articles

(1) and (2), where the Unit considers that the

publication of an administrative measure or penalty

may jeopardise the stability of financial markets or

may jeopardise any on-going supervisory, analytical or

investigative work, or it considers it to

bedisproportionate, the Unit may, in accordance with

policies and procedures established by the Board of

Governors in terms of sub-article (4), decide to delay

the publication, or to publish that

administrativemeasure or penalty on an anonymous

basis, or not to publish such an administrative measure

or penalty.

(4) The Board of Governors referred to in article

18 shall establish and publish policies and procedures

to further regulate the publication of administrative

measures and penalties.".

6. In sub-article (2) of article 15 of the principal Act, immediately Amendment of

after the words "memoranda of understanding or other agreement" there article

principal Act.

shall be added the word "including".

7. Article 16 of the principal Act shall be amended as follows

Amendment of

article 16 of the

principal Act.

(a)

in sub-article (1) thereof

(i) immediately after the words "dissemination of

information with a view to" there shall be added the words

"preventing, detecting and effectively";

(ii) in sub-paragraph (i) of paragraph (k)

immediately after the words "paragraphs (a) and (b)" there

shall be added the words "regardless of its nature or

status";

(iii) in sub-paragraph (ii) of paragraph (k) the words

"or with any authority outside Malta which it considers to

have equivalent or analogous functions to a supervisory

authority in Malta; and" shall be substituted by the words

"or any other authority or body having regulatory or

supervisory functions outside Malta, when the Unit is of

the view that such co-operation and exchange of

information would assist in monitoring compliance by

subject persons or other persons undertaking equivalent

activities outside Malta, with anti-money laundering and

counter-funding of terrorism laws or with other laws

specific to their activities or services, or in ensuring that

the financial sector and other relevant sectors or

professions are not used for criminal purposes, or to

safeguard their integrity;";

(iv) in paragraph (l) the words "in the course of the

discharge of any of its functions at law." shall be

substituted by the words "in the course of the discharge of

any of its functions at law;" and immediately thereafter

there shall be added the following new paragraphs

"(m) to monitor compliance with any

restrictions on payments in cash which may be

introduced from time to time under this Act; and

(n) to establish, manage and administer

centralised automated mechanisms allowing for the

retrieval of data and information on any person

holding or controlling payment or bank accounts or

any person making use of safe custody services

offered by credit institutions.";

(b) sub-article (2) thereof shall be renumbered as sub-

article (3); and

(c) immediately after sub-article (1) thereof there shall

be added the following new sub-article

"(2) For the purpose of carrying out any of its

functions under this Act or other regulations issued

thereunder, the Unit shall have the power to impose fees

and charges, including fees or charges to cover costs

incurred by Unit in engaging any expert as envisaged in

article 26A.".

8. Article 19 of the principal Act shall be amended as follows

(a) in paragraph (a) of sub-article (1) thereof, the words

"four members appointed" shall be substituted by the words "five

members appointed"; and

(b) sub-article (2) thereof shall be substituted by the

following

"(2) The Minister shall appoint the five members

referred to in sub-article (1)(a) by selecting one member

from each of five panels, each of at least three persons,

nominated respectively by the Governor of the Central

Bank of Malta, the Chairman of the Malta Financial

Services Authority, the Chairperson of the Malta Gaming

Authority, the Commissioner of Police and the

Commissioner for Revenue.".

9. Article 23 of the principal Act shall be substituted by the

following

" The Executive

(1) The Director of the Unit shall be

and other staff of

appointed by the Board, according to such procedures

and on such terms and conditions as the Board may

determine, following a public call for applications.

(2) The other officers and staff of the Unit shall be

selected by the Director of the Unit according to such

procedures and on such terms and conditions and in

such numbers as the Board may determine.

(3) The Director and all officers and staff of the

Unit shall be persons of integrity and good conduct.".

10. Article 26 of the principal Act shall be amended as follows

Amendment of

article 26 of the

principal Act.

(a) paragraph (a) of sub-article (2) thereof shall be

substituted by the following

"(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)

paragraph (c) of sub-article (2) thereof shall be

substituted by the following

"(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;";

(c) immediately after paragraph (c) of sub-article (2)

thereof there shall be added the following new paragraph

"(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.";

(d) sub-article (4) thereof shall be deleted and sub-article

(5) and sub-article (6) shall be renumbered as sub-articles (4) and

(5) respectively; and

(e) sub-article (4) thereof, as renumbered, shall be

substituted by the following

"(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.".

11. Article 27 of the principal Act shall be amended as follows

(a) sub-article (1) thereof shall be substituted by the

following

"(1) Without prejudice to any restriction that the Unit

may be subject to, the Unit shall, upon request or on its

own motion, co-operate and exchange information with

any supervisory authority in Malta or any other authority

or body having regulatory or supervisory functions

outside Malta, when the Unit is of the view that such co-

operation and exchange of information would assist in

monitoring compliance by subject persons or other

persons undertaking equivalent activities outside Malta,

with anti-money laundering and counter-funding of

terrorism laws or other laws specific to their activities or

services, or in ensuring that the financial sector and other

relevant sectors or professions are not used for criminal

purposes, or to safeguard their integrity

Provided that the exchange of information shall be

subject to

(a) a guarantee by the authority or body

receiving such information that it has adequate

rules and procedures in place governing the

confidentiality and security of information;

(b) the condition that information or

documents exchanged shall be used by the

receiving authority or body only for the purpose of

performing its supervisory or regulatory functions;

(c) the condition that the exchanged

information shall not be used for purposes other

than those referred to in paragraph (b), nor shall it

be disseminated to any other person, body,

authority or agency without the express prior

consent of the Unit; and

(d) any other condition or restriction that

the Unit may determine, including the prior

conclusion, if it deems so necessary, of any

memorandum of understanding or other agreement

to regulate any such exchange of information

Provided further that where the Unit exchanges any

information with a supervisory authority in Malta, that

supervisory authority shall provide the Unit upon request

and in a timely manner with information on the use made

of the exchanged information and any outcome of any

inspection or any other regulatory action undertaken on

the basis of that information.";

(b) in paragraph (b) of sub-article (3) thereof, the words

"with the aim of establishing that person’s compliance" shall be

substituted by the words "with the aim of monitoring that

person’s compliance"; and

(c) immediately after sub-article (4) thereof, there shall

be added the following new sub-article

"(5) For the purposes of sub-article (1) the term

supervisory authority shall also include any authority, body

or committee responsible for the authorisation, licensing,

registration, or regulation of, or the granting, suspension or

revocation of a warrant to subject persons.".

12. Article 27A of the principal Act shall be amended as follows

Amendment of

article 27A of

the principal

(a) in sub-article (1) thereof, immediately after the

Act.

words "funding of terrorism and the persons involved" there

shall be added the words ", regardless of the type of underlying

criminal activity, and even where the underlying criminal

activity is not known at the time of exchange"; and

(b)

sub-article (3) thereof shall be amended as follows

(i) immediately after the words "by the Unit

promptly" there shall be added the words ", regardless of

the type of underlying criminal activity";

(ii) in paragraph (a) immediately after the words

"criminal investigation;" there shall be added the word

"or"; and

(iii) paragraph (b) shall be deleted and paragraph (c)

shall be renumbered as paragraph (b).

13. Article 27B of the principal Act shall be amended as follows

(a) the words "if it deems it necessary or expedient, and"

shall be deleted and the words "information to the relevant

competent authority." shall be substituted by the words

"information to the relevant competent authority:"; and

(b) immediately after article 27B thereof there shall be

added the following proviso

"Provided that the transmission of information shall

be subject to

(a) a guarantee by the competent authority

receiving such information that it has adequate rules

and procedures in place governing the confidentiality

and security of information;

(b) the condition that information or

documents exchanged shall be used by the receiving

competent authority only for the purposes of

pursuing its functions at law;

(c) the condition that the transmitted

information shall not be used for purposes other than

those referred to in paragraph (b) above, nor shall it

be disseminated to any other person, body, authority

or agency without the express prior consent of the

Unit; and

(d) any other condition or restriction that the

Unit may determine, including the prior conclusion,

if it deems so necessary, of any memorandum of

understanding or other agreement to regulate any

such transmission of information.".

14. Article 30B and article 30C of the principal Act shall be

renumbered as articles 30C and 30D respectively.

15. Immediately after article 30A of the principal Act there shall

be added the following new article

Without prejudice to the provisions of article

27A, any information demanded or obtained by the Unit

in terms of the provisions of this Act and regulations

issued thereunder may be used by the Unit for the

pursuance of any of its functions under article 16 as it

deems relevant and necessary.".

16. Article 34 of the principal Act shall be amended as follows

(a)

sub-article (1) thereof shall be substituted by the

following

"(1) The Unit, and its officers, employees and agents,

whether still in service of the Unit or not, shall treat any

information and documents acquired in the performance of

their duties or the exercise of their functions under this Act

as confidential, and shall not disclose any information or

document relating to the affairs of the Unit or of any

person, which they have acquired in the performance of

their duties or the exercise of their functions under this Act

except

(a) when authorised to do so under any of

the provisions of this Act;

(b) for the purpose of the performance of

their duties or the exercise of their functions under

this Act;

(c) to any competent court or tribunal in any

appeal proceedings instituted in accordance with the

provisions of article 13A, or in proceedings to

which the Unit is a party for the purpose of the

enforcement of any penalty imposed by the Unit

under this Act; and

(d) in the form of an aggregation of data or

other statistical information, which in the opinion of

the Unit does not lead to the identification of any

specific person and which does not prejudice any

analysis or investigation.";

(b)

sub-article (2) thereof shall be amended as follows

(i) paragraph (a) thereof shall be substituted by the

following

"(a) in its opinion such disclosure could

impede an inquiry, investigation or any other

proceeding in course in Malta; or";

(ii) paragraph (b) and paragraph (c) thereof shall be

renumbered as paragraph (c) and paragraph (d)

respectively; and

(iii) immediately after paragraph (a) thereof there

shall be added the following new paragraph

"(b) such information or document was

received by the Unit in carrying out its functions

under sub-articles 16(1)(a), 16(1)(b) and 16(1)(k) or

providing such information or disclosing such

document may, in the opinion of the Unit, prejudice

any analysis; or";

(c) sub-article (3) thereof shall be substituted by the

following

"(3) The Unit may also disclose any information or

document referred to in sub-article (1) to any authority in

or outside Malta carrying out a criminal investigation into

any act or omission committed in Malta and which

constitutes, or if committed outside Malta would in

corresponding circumstances constitute

(a) any of the offences referred to in article

22(2)(a)(1) of the Dangerous Drugs Ordinance; or

(b) any of the offences referred to in article

120A(2)(a)(1) of the Medical and Kindred

Professions Ordinance; or

(c) any offence of money laundering within

the meaning of this Act; or

(d) any offence of funding of terrorism

Provided that when disclosing any

information or document in the circumstances

referred to in this sub-article, the Unit may also

disclose any information or document related to the

underlying criminal activity."; and

(d) immediately after sub-article (3) thereof there shall

be added the following new sub-article

"(4) Notwithstanding any other provision of this Act

or any other law, any information or document disclosed

by the Unit in terms of sub-article (3) shall be considered

as secret and shall

(a) be used only for the purposes of the

investigation being carried out and no other use

thereof shall be made nor shall it be disclosed or

disseminated to any other person or authority

without the prior express consent of the Unit

Provided such further use, disclosure or

dissemination is strictly necessary for the purpose

of the investigation being carried out and the

provisions of this sub-article shall also apply to

such further use, disclosure or dissemination;

(b) be considered as intelligence for the

purposes of assisting the investigation being carried

out, and shall not be considered as evidence nor

used as such in any proceedings, whether judicial or

otherwise, which may be instituted as a result of

any such investigation;

(c) not be provided under oath;

(d) be recorded, held and archived

separately from the acts of the investigation or any

procès verbal and shall be sealed in such manner so

as to ensure its confidentiality and secrecy;

(e) not form part of any published report or

findings resulting from the investigation; and

(f) under no circumstance be made

public.".

17. In sub-article (1) of article 42 of the principal Act, the word Amendment of

"Board" shall be substituted by the word "Unit".

Passed by the House of Representatives at Sitting No. 296 of the 5th

CLAUDETTE BUTTIGIEG

Deputy Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€1.26