PREVENTION OF MONEY LAUNDERING ACT

CHAPTER 373

PREVENTION OF MONEY LAUNDERING ACT

To make provision for the prevention and prohibition of the laundering

of money in Malta.

23rd September, 1994

ACT XIX of 1994 as amended by: Act II of 1998; Legal Notice 71 of

1999; Acts XXXI of 2001, III of 2002, and III and XIII of 2004; Legal

Notice 176 of 2005; Acts VI of 2005 and XXVIII of 2006; Legal Notice 425

of 2007; Act XXXI of 2007; Legal Notice 105 of 2008; Act VII of 2010;

Legal Notice 426 of 2012; and Acts XXXVIII of 2014, III, VIII of 2015,

XXVIII of 2017, XLII of 2018, VII and XXXI of 2019, I and VIII of 2020,

V, XV of 2021, XLIII of 2021 and VIII of 2023 and VI of 2024.

The short title of this Act is the Prevention of Money

Laundering Act.

(Article 2)

Article 3 (1) (a) of the United Nations Convention

Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances.

(i)

The production, manufacture, extraction, preparation, offering, offering for

sale, distribution, sale, delivery on any terms whatsoever, brokerage,

dispatch, dispatch in transit, transport, importation or exportation of any

narcotic drug or any psychotropic substance contrary to the provisions of the

1961 Convention, the 1961 Convention as amended or the 1971 Convention;

(ii) The cultivation of opium poppy, coca bush or cannabis plant for the purpose

of the production of narcotic drugs contrary to the provisions of the 1961

Convention and the 1961 Convention as amended;

(iii) The possession or purchase of any narcotic drug or psychotropic substance

for the purpose of any of the activities enumerated in (i) above;

(iv) The manufacture, transport or distribution of equipment, materials or of

substances listed in Table I and Table II, knowing that they are to be used in

or for the illicit cultivation, production or manufacture of narcotic drugs, or

psychotropic substances;

(v)

The organization, management or financing of any of the offences

enumerated in (i), (ii), (iii) or (iv) above.

(1)

In this Act, unless the context otherwise requires -

"criminal activity" means any activity, whenever or wherever

carried out, which, under the law of Malta or any other law,

amounts to

(a) a crime or crimes specified in Article 3 (1) (a) of the

United Nations Convention Against Illicit Traffic in

Narcotic Drugs and Psychotropic Substances adopted

on the 19th December 1988 in Vienna reproduced (in

the English language only) in the First Schedule to this

Act; or

(b) one of the offences listed in the Second Schedule to

this Act;

"EEA State" means a State which is a contracting party to the

agreement on the European Economic Area signed at Oporto on the

2 May, 1992 as amended by the Protocol signed at Brussels on the

17 March, 1993 and as may be amended by any subsequent Acts;

"European Supervisory Authority" means the European

Supervisory Authority (European Banking Authority), established

by Regulation (EU) No. 1093/2010 of the European Parliament and

of the Council, or the European Supervisory Authority (European

Insurance and Occupational Pensions Authority) established by

Regulation (EU) No. 1094/2010 of the European Parliament and of

the Council or the European Supervisory Authority (European

Securities and Markets Authority) established by Regulation (EU)

No. 1095/2010 of the European Parliament and of the Council;

"funding of terrorism" means the conduct described in articles

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

"Member State" means a Member State of the European Union

and includes an EEA State;

"Minister" means the Minister responsible for finance;

"money laundering" means -

(i)

the conversion or transfer of property knowing

or suspecting that such property is derived

directly or indirectly from, or the proceeds of,

criminal activity or from an act or acts of

participation in criminal activity, for the purpose

of or purposes of concealing or disguising the

origin of the property or of assisting any person

or persons involved or concerned in criminal

activity;

(ii) the concealment or disguise of the true nature,

source, location, disposition, movement, rights

with respect of, in or over, or ownership of

property, knowing or suspecting that such

property is derived directly or indirectly from

criminal activity or from an act or acts of

participation in criminal activity;

(iii) the acquisition, possession or use of property

knowing or suspecting that the same was derived

or originated directly or indirectly from criminal

activity or from an act or acts of participation in

criminal activity;

(iv) retention without reasonable excuse of property

knowing or suspecting that the same was derived

or originated directly or indirectly from criminal

activity or from an act or acts of participation in

criminal activity;

(v)

attempting any of the matters or activities

defined in the above foregoing sub-paragraphs

(i), (ii), (iii) and (iv) within the meaning of

article 41 of the Criminal Code;

(vi)

acting as an accomplice within the meaning of

article 42 of the Criminal Code in respect of any

of the matters or activities defined in the above

foregoing sub- paragraphs (i), (ii), (iii), (iv) and

(v);

"prescribed" means prescribed by regulations made under this

Act;

"property" means property and assets of every kind, nature and

description, whether movable or immovable, whether corporeal or

incorporeal, tangible or intangible, legal documents or instruments

evidencing title to, or interest in, such property or assets and,

without derogation from the generality of the foregoing, shall

include -

(a) any currency, whether or not the same is legal tender in

Malta, bills, securities, bonds, negotiable instruments

or any instrument capable of being negotiable

including one payable to bearer or endorsed payable to

bearer whether expressed in euro or any other foreign

currency;

(b) cash or currency deposits or accounts with any bank,

credit or other institution as may be prescribed which

carries or has carried on business in Malta;

(c) cash or items of value including but not limited to

works of art or jewellery or precious metals; and

(d) land or any interest therein;

"the Unit" means the unit established by article 15.

(2) (a) A person may be convicted of a money laundering

offence under this Act even in the absence of a judicial

finding of guilt in respect of the underlying criminal

activity, the existence of which may be established on

the basis of circumstantial or other evidence without it

being incumbent on the prosecution to prove a

conviction in respect of the underlying criminal

activity and without it being necessary to establish

precisely which underlying activity.

(b) A person can be separately charged and convicted of

both a money laundering offence under this Act and of

an underlying criminal activity from which the

property or the proceeds, in respect of which he is

charged with money laundering, derived.

(c) For the purposes of this sub-article, "underlying

criminal activity" refers to the criminal activity from

which the property or other proceeds, which are

involved in a money laundering offence under this Act

have been directly or indirectly derived.

PART I

INVESTIGATION AND PROSECUTION OF OFFENCES

Amended by

L.N. 71 of 1999.

Substituted by

(Article 2)

L.N. 176 of 2005.

Any criminal offence.

(1) Any person committing any act of money laundering

shall be guilty of an offence and shall, on conviction, be liable to a

fine (multa) not exceeding two million and five hundred thousand

euro (€2,500,000), or to imprisonment for a period not exceeding

eighteen years, or to both such fine and imprisonment

Provided that an act of money laundering shall be aggravated

(a) the offence was committed within the framework of a

criminal organisation within the meaning of

Framework Decision 2008/841/JHA; or

(b) the offender is an obliged entity within the meaning of

Article 2 of Directive (EU) 2015/849 and has

committed the offence in the exercise of his

professional activities

Provided further that the Court may impose any one (1) or

more of the following additional sanctions

(a) in the case where an act of money laundering is

committed by natural persons

(i)

the temporary or permanent exclusion from

access to public funding, including tender

procedures, grants and concessions;

(ii)

the temporary or permanent disqualification

from the practice of commercial activities;

(iii) the temporary bans on running for elected or

public office;

(b) in the case where an act of money laundering is

committed by a body of persons, whether corporate or

unincorporate

(i)

the exclusion from entitlement to public benefits

or public aid;

(ii) the temporary or permanent exclusion from

access to public funding, including tender

procedures, grants and concessions;

(iii) the temporary or permanent disqualification

from the practice of commercial activities;

(iv) the placing under judicial supervision;

(v) its dissolution and winding up;

(vi) the temporary or permanent closure of

establishments which have been used for

committing the offence.

(2) Where an offence against the provisions of this Act is

committed by a body of persons, whether corporate or

unincorporate, every person who, at the time of the commission of

the offence, was a director, manager, secretary or other similar

officer of such body or association, or was purporting to act in any

such capacity, shall be guilty of that offence unless he proves that

the offence was committed without his knowledge and that he

exercised all due diligence to prevent the commission of the

offence.

(2A) (a) Every person charged with an offence of money

laundering under this Act shall be tried in the Criminal

Court or before the Court of Magistrates (Malta) or the

Court of Magistrates (Gozo), as the Attorney General

may direct, and if he is found guilty shall be liable -

(i)

on conviction by the Criminal Court to the

punishment of imprisonment for a term of not

less than four years but not exceeding eighteen

years, or to a fine (multa) of not less than fifty

thousand euro (€50,000) but not exceeding two

million and five hundred thousand euro

(€2,500,000), or to both such fine and

imprisonment; or

(ii) on conviction by the Court of Magistrates

(Malta) or the Court of Magistrates (Gozo) to the

punishment of imprisonment for a term of not

less than twelve months but not exceeding nine

years, or to a fine (multa) of not less than twenty

thousand euro (€20,000) but not exceeding two

hundred and fifty thousand euro (€250,000), or

to both such fine and imprisonment

Provided that

PREVENTION OF MONEY LAUNDERING

(i)

in giving a direction in accordance with this sub-

article the Attorney General shall give due

consideration to the age of the offender, the

prior conduct of the offender, the value of the

property laundered and all the other

circumstances of the offence;

(ii) where the Attorney General has directed that the

person accused is to be tried in the Criminal

Court in accordance with this sub-article, upon

the termination of the inquiry, if the Court of

Magistrates as a Court of Criminal Inquiry

decides that there are sufficient grounds for

committing the accused for trial on indictment,

the accused may, by application to be filed in the

Criminal Court within seven days from the

conclusion of inquiry or within seven days from

the date on which the accused is served with the

bill of indictment, demand the said court to order

that he be tried in the Court of Magistrates and

the Criminal Court shall, after ordering the

service of the application upon the Attorney

General and granting him at least seven days to

reply and after having heard oral submissions

from the accused and the Attorney General if it

considers this necessary, decide upon the Court

in which the accused is to be tried and the

accused shall be tried in accordance with the

decision of the Criminal Court

Provided that an application in terms of this sub-

paragraph may only be filed once in the course

of any proceedings

Provided further that persons who on the date of

the coming into force of this sub-paragraph are

awaiting trial in the Criminal Court further to a

direction given in terms of this sub-article may,

notwithstanding the other provisions of this sub-

article, file an application in the said court in

terms of this sub-paragraph within one month

from the said date;

(iii) where upon conviction the accused is liable to

the punishment provided in terms of sub-

paragraph (a)(i) of this sub-article and the court

competent to sentence the accused is of the

opinion that when it takes into account the age

of the offender, the prior conduct of the offender,

the value of the property laundered and all the

other circumstances of the offence, the

punishment provided for in sub-paragraph (a)(i)

of this sub-article would not be appropriate, it

may, giving reasons apply the punishment

provided in sub-paragraph (ii) of this sub-article.

(b) Notwithstanding

that

the

Attorney

General

has

directed in accordance with the provisions of

paragraph (a) that a person be tried in the Criminal

Court, he may, at any time before the filing of the bill

of indictment or at any time after filing the bill of

indictment before the jury is empanelled, and with the

consent of the accused, direct that that person be tried

before the Court of Magistrates, and upon such

direction the Court of Magistrates as a court of

criminal judicature shall become competent to try that

person as if no previous direction had been given.

Where the Attorney General has given such new

direction after the filing of the bill of indictment, the

registrar of the Criminal Court shall cause the record

to be transmitted to the Court of Magistrates, and shall

cause a copy of the Attorney General’s direction to be

served on the Commissioner of Police.

(c) Notwithstanding the provisions of article 370 of the

Criminal Code and without prejudice to the provisions

of sub-article (2), the Court of Magistrates shall be

competent to try offences of money laundering under

this Act as directed by the Attorney General in

accordance with the provisions of this sub-article.

(3) In proceedings for an offence of money laundering under

this Act the provisions of article 22(1C)(b) of the Dangerous Drugs

Ordinance shall mutatis mutandis apply.

(4) Where it is established that an offence of money laundering

under this Act was committed by an officer of a body corporate as

is referred to in article 121D of the Criminal Code or by a person

having a power of representation or having such authority as is

referred to in that article and the offence was committed for the

benefit, in part or in whole, of that body corporate, the said person

shall for the purposes of this Act be deemed to be vested with the

legal representation of the same body corporate which shall be

liable to the punishment laid down in sub-article (1)

Provided that where legal representation no longer vests in

the said person, for purposes of this article, legal representation

shall vest in the person occupying the office in his stead or in such

person as is referred to in that article.

(5)

(a) Without prejudice to the provisions of article 23 of the

Criminal Code the court shall, in addition to any

punishm ent to which the person convicted of an

offence of money laundering under this Act may be

sentenced and in addition to any penalty to which a

body corporate may become liable under the provisions

of sub-article (4), order the forfeiture in favour of the

Government of the proceeds or of such property the

value of which corresponds to the value of such

proceeds whether such proceeds have been received by

the person found guilty or by the body corporate

referred to in the said sub-article (4) and any property

of or in the possession or under the control of any

person found guilty as aforesaid or of a body corporate

as mentioned in this sub-article shall, unless proved to

the contrary, be deemed to be derived from the offence

of money laundering and liable to confiscation or

forfeiture by the court even if in the case of immovable

property such property has since the offender was

charged passed into the hands of third parties, and even

if the proceeds of property, movable or immovable, are

situated in any place outside Malta

Provided that the presumption in this paragraph and any

similar presumption in any other law shall not prejudice

the power of the Court to vary a freezing order whilst

criminal proceedings are pending as provided in article 5

Provided further that, for the purposes of this sub-

article, "proceeds" means any economic advantage and

any property derived from or obtained, directly or

indirectly, through criminal activity and includes any

income or other benefit derived from such property.

(b) Where the proceeds of the offence have been

dissipated or for any other reason whatsoever it is not

possible to identify and forfeit those proceeds or to

order the forfeiture of such property the value of which

corresponds to the value of those proceeds the court

shall sentence the person convicted or the body

corporate, or the person convicted and the body

corporate in solidum, as the case may be, to the

payment of a fine (multa) which is the equivalent of

the amount of the proceeds of the offence. The said

fine shall be recoverable as a civil debt and for this

purpose the sentence of the court shall constitute an

executive title for all intents and purposes of the Code

of Organization and Civil Procedure.

(c) Where it is established that the value of the property of

the person found guilty of an offence of money

laundering under this Act is disproportionate to his

lawful income and the court based on specific facts is

fully convinced that the property in question has been

derived from the criminal activity of that person, that

property shall be liable to forfeiture.

(6) Without prejudice to the provisions of article 5 of the

Criminal Code, the Maltese courts shall also have jurisdiction over

any offence of money laundering under this Act in the same

circumstances as are mentioned in article 121C of the Criminal

Code.

(7) (a) The provisions of article 248E(4) and Title IV of Part III

of Book Second of the Criminal Code and those of article 22(3A)(b)

and (7) of the Dangerous Drugs Ordinance shall apply mutatis

mutandis to the offence of money laundering under this Act.

(b) The court shall order the forfeiture in favour of the

Government of such moneys or other movable property and such

immovable property of the person found guilty of the offence of

money laundering which constitute the proceeds of the said offence

even if the movable or immovable property has since the offender was

charged passed into the hands of third parties and even if the said

moneys, movable property or immovable property are situated in any

place outside Malta.

(1) Where, upon information received, the Attorney

General has reasonable cause to suspect that a person (hereinafter

referred to as "the suspect") is guilty of the offence mentioned in

a r t ic l e 3 , h e m a y a pp l y to t h e C r im in a l C o ur t f o r a n o r de r

(hereinafter referred to as an "investigation order") that a person

(including a body or association of persons, whether corporate or

unincorporate) named in the order who appears to be in possession

of particular material or material of a particular description which

is likely to be of substantial value (whether by itself or together

with other material) to the investigation of, or in connection with,

the suspect, shall produce or grant access to such material to the

person or persons indicated in the order; and the person or persons

so indicated shall, by virtue of the investigation order, have the

power to enter any house, building or other enclosure for the

purpose of searching for such material.

(2) Where an investigation order has been made or applied for,

whosoever, knowing or suspecting that the investigation is taking

place, discloses that an investigation is being undertaken or makes

any other disclosures likely to prejudice the said investigation shall

be guilty of an offence and shall, on conviction, be liable to a fine

(multa) not exceeding eleven thousand and six hundred and forty-

six euro and eighty-seven cents (11,646.87) or to imprisonment not

exceeding twelve months, or to both such fine and imprisonment

Provided that in proceedings for an offence under this sub-

article, it shall be a defence for the accused to prove that he did not

know or suspect that the disclosure was likely to prejudice the

investigation.

(3)

An investigation order -

(a) shall not confer any right to production of, access to,

or search for communications between an advocate or

legal procurator and his client, and between a

clergyman and a person making a confession to him,

which would in legal proceedings be protected from

disclosure by article 642(1) of the Criminal Code or by

article 588(1) of the Code of Organization and Civil

Procedure;

(b) shall, without prejudice to the provisions of the

foregoing paragraph, have effect notwithstanding any

obligation as to secrecy or other restriction upon the

disclosure of information imposed by any law or

otherwise; and

(c) may be made in relation to material in the possession

of any government department.

(4) Where the material to which an application under sub-

article (1) relates consists of information contained in a computer,

the investigation order shall have effect as an order to produce the

material or give access to such material in a form in which it can be

taken away and in which it is visible and legible.

(5) Any person who, having been ordered to produce or grant

access to material as provided in sub-article (1) shall, without

lawful excuse (the proof whereof shall lie on him) wilfully fail or

refuse to comply with such investigation order, or who shall

wilfully hinder or obstruct any search for such material, shall be

guilty of an offence and shall, on conviction, be liable to a fine

(multa) not exceeding eleven thousand and six hundred and forty-

six euro and eighty-seven cents (11,646.87) or to imprisonment not

exceeding twelve months, or to both such fine and imprisonment.

(6) Together with or separately from an application for an

investigation order, the Attorney General may, in the circumstances

mentioned in sub-article (1), apply to the Criminal Court for an

order (hereinafter referred to as an "attachment order") -

(a) attaching in the hands of such persons (hereinafter

referred to as "the garnishees") as are mentioned in the

application all moneys and other movable property due

or pertaining or belonging to the suspect;

(b) requiring the garnishee to declare in writing to the

Attorney General, not later than twenty-four hours

from the time of service of the order, the nature and

source of all money and other movable property so

attached; and

(c) prohibiting the suspect from transferring or otherwise

disposing of any movable or immovable property.

(6A) Where an attachment order has been made or applied for,

whosover, knowing or suspecting that the attachment order has

been so made or applied for, makes any disclosure likely to

prejudice the effectiveness of the said order or any investigation

connected with it shall be guilty of an offence and shall, on

conviction, be liable to a fine (multa) not exceeding eleven

thousand and six hundred and forty-six euro and eighty-seven cents

(11,646.87) or to imprisonment not exceeding twelve months, or to

both such fine and imprisonment

Provided that in proceedings for an offence under this sub-

article, it shall be a defence for the accused to prove that he did not

know or suspect that the disclosure was likely to prejudice the

investigation or the effectiveness of the attachment order.

(7) Before making an investigation order or an attachment

order, the court may require to hear the Attorney General in

chambers and shall not make such order -

(a) unless it concurs with the Attorney General that there

is reasonable cause as provided in sub-article (1); and

(b) in the case of an investigation order, unless the court is

satisfied that there are reasonable grounds for

suspecting that the material to which the application

relates -

(i)

is likely to be of substantial value (whether by

itself or together with other material) to the

investigation for the purpose of which the

application is made, and

(ii) does not consist of communications referred to

in sub-article (3)(a).

(8) The provisions of article 381(1)(a), (b) and (e) and of

article 382(1) of the Code of Organization and Civil Procedure

shall, mutatis mutandis, apply to the attachment order.

(9) An investigation order shall be served on the persons

referred to in sub-article (1) and an attachment order shall be served on

the garnishee and on the suspect by an officer of the Executive Police

or by an officer of the issuing authority or by an officer of the Courts

or of the Asset Recovery Bureau

Provided that such orders may also be served on the

garnishee and the persons referred to in sub-article (1), except for the

suspect, by electronic mail in which case the person upon whom the

order is served shall acknowledge receipt by return electronic mail by

not later than one working day from such service. In default of receipt

of such acknowledgement the order shall be served physically by any

of the officers referred to in this sub-article without prejudice to the

validity of the service made by electronic mail

Provided further that the procedure stipulated in this sub-

article shall apply, in addition to that provided in sub-article (9) of

article 24A of the Dangerous Drugs Ordinance, with regard to service

of investigation orders and attachment orders issued under the said

Ordinance.

(10) Any person who acts in contravention of an attachment

order shall be guilty of an offence and shall, on conviction, be

liable to a fine (multa) not exceeding eleven thousand and six

hundred and forty-six euro and eighty-seven cents (11,646.87) or to

imprisonment for a period not exceeding twelve months or to both

such fine and imprisonment

Provided that where the offence consists in the payment or

delivery to any person by the garnishee of any moneys or other

movable property attached as provided in sub-article (6)(a) or in

the transfer or disposal by the suspect of any movable or

immovable property in contravention of sub-article (6)(c), the fine

shall always be at least twice the value of the money or property in

question

Provided further that any act so made in contravention of

that court order shall be null and without effect at law and the court

may, where such person is the garnishee, order the said person to

deposit in a bank to the credit of the suspect the amount of moneys

or the value of other movable property paid or delivered in

contravention of that court order.

(11) An attachment order shall, unless it is revoked earlier by

the Attorney General by notice in writing served on the suspect and

on the garnishee in the manner provided for in sub-article (9), cease

to be operative on the expiration of six (6) months from the date on

which it is made; and the court may, upon application of the

Attorney General, and where it is satisfied that sufficient grounds

exist, extend the validity of the attachment order for another six (6)

months. The court shall not make another attachment order with

respect to that suspect unless it is satisfied that substantially new

information with regards to the offence mentioned in article 3 is

available

Provided that the period of validity as established in this

sub-article shall be held in abeyance for such time as the suspect is

away from these Islands and the Attorney General informs of this

fact the garnishee by notice in writing served in the manner

provided for in sub-article (9).

(11A)(a)When an Attachment Order is revoked by the Criminal

Court or withdrawn by the Attorney General prior to the expiration of

its period of validity, the said Court shall issue a decree confirming the

said revocation and shall order the service of the said decree upon the

suspect and upon all garnishees in the manner provided in sub-article

(9) and upon all those served with the Attachment Order.

(b)

When the period of validity of an Attachment

Order is suspended for such time as the suspect is away from

Malta, the said suspension shall only apply in respect of that

person.

(c)

When an Attachment Order no longer remains in

force, the Criminal Court shall issue a decree confirming that

the Attachment Order is no longer in force. The Court shall

order the service of the said decree upon the suspect and upon

all garnishees in the manner as provided in sub-article (9) and

upon all those served with the Attachment Order.

(12) In the course of any investigation of an offence against

article 3, the Executive Police may request a magistrate to hear on

oath any person who they believe may have information regarding

such offence; and the magistrate shall forthwith hear that person on

oath.

(13) For the purpose of hearing on oath a person as provided in

sub-article (12) the magistrate shall have the same powers as are by

law vested in the Court of Magistrates (Malta) or the Court of

Magistrates (Gozo) as a court of criminal inquiry as well as the

powers mentioned in article 554 of the Criminal Code; provided

that such hearing shall always take place behind closed doors.

(14) It shall not be lawful for any court to issue a warrant of

prohibitory injunction to stop the execution of an investigation

order.

The provisions of article 30B of the Dangerous Drugs

Ordinance shall apply mutatis mutandis to proceeds within the

meaning of article 3(5).

(1) Where, upon information received, the Attorney

General has reasonable cause to suspect that a person (hereinafter

referred to as "the suspect") is guilty of the offence mentioned in

a r t ic l e 3 , h e m a y a pp l y to t h e C r im in a l C o ur t f o r a n o r de r

(hereinafter referred to as a "monitoring order") requiring a bank to

m o n i t o r f o r a s p e c i f i e d p e r io d t h e t r a n s a c t i o n s o r b a nk i n g

operations being carried out through one or more accounts in the

name of the suspect, or through one or more accounts suspected to

have been used in the commission of the offence or which could

provide information about the offence or the circumstances thereof,

whether before, during or after the commission of the offence,

including any such accounts in the name of legal persons. The bank

shall, on the demand of the Attorney General, communicate to the

person or authority indicated by the Attorney General the

information resulting from the monitoring and, once the

information is collated, the person or authority receiving the

information shall transmit that information to the Attorney General.

(2) Where a monitoring order has been made or applied for,

whosoever, knowing or suspecting that the investigation is taking

place, discloses that an investigation is being undertaken or makes

any other disclosures likely to prejudice the said investigation shall

be guilty of an offence and shall, on conviction, be liable to a fine

(multa) not exceeding eleven thousand and six hundred and forty

six euro and eighty-seven cents (11,646.87) or to imprisonment not

exceeding twelve months, or to both such fine and imprisonment

Provided that in proceedings for an offence under this sub-

article, it shall be a defence for the accused to prove that he did not

know or suspect that the disclosure was likely to prejudice the

investigation.

When a person is charged under article 3, the prosecution may

apply to the Court of Magistrates for a freezing order and the

provisions of article 36 of the Proceeds of Crime Act shall apply.

Any person who acts in contravention of a court order

mentioned in article 5 shall be guilty of an offence and shall, on

conviction, be liable to a fine (multa) not exceeding eleven

thousand and six hundred and forty-six euro and eighty-seven cents

(11,646.87) or to imprisonment for a period not exceeding twelve

months, or to both such fine and imprisonment, and any act so

made in contravention of such court order shall be null and without

effect at law and the court may, where such person is the garnishee,

order the said person to deposit in a bank to the credit of the person

charged the amount of moneys or the value of other movable

property paid or delivered in contravention of that court order.

Articles 38 and 39 of the Proceeds of Crime Act shall apply in

respect of the determination of any property subject to confiscation in

terms of article 3(5) and of the determination of the rights of third

parties over such property.

Repealed by Act VI.2024.16.

(1) Where the Attorney General receives a request made

by the judicial or prosecuting authority of any place outside Malta

for investigations to take place in Malta in respect of a person

(hereinafter referred to as "the suspect") suspected by that authority

of an act or omission which if committed in these Islands, or in

corresponding circumstances, would constitute an offence under

article 3, the Attorney General may apply to the Criminal Court for

an investigation order or an attachment order or for both and the

provisions of article 24A of the Dangerous Drugs Ordinance shall

mutatis mutandis apply to that application and to the suspect and to

any investigation or attachment order made by the court as a result

of that application.

(2) The words "investigation order" in sub-articles (2) and (5)

of the same article 24A shall be read and construed as including an

investigation order made under the provisions of this article.

(3) The words "attachment order" in article 24A(6A) of the

Dangerous Drugs Ordinance shall be read and construed as

including an attachment order made under the provisions of this

article.

Where the request referred to in the preceding article is

made for the purpose of monitoring the transactions or banking

operations being carried out through one or more accounts of a

suspect, the Attorney General may apply to the Criminal Court for

a monitoring order and the provisions of article 4B shall apply

mutatis mutandis.

(1) Where the Attorney General receives a request made

by a judicial or prosecuting authority of any place outside Malta for

the temporary seizure of all or any of the moneys or property,

movable or immovable, of a person (hereinafter in this article

referred to as "the accused") charged or accused in proceedings

before the courts of that place of an offence consisting in an act or

an omission which if committed in these Islands, or in

corresponding circumstances, would constitute an offence under

article 3, the Attorney General may apply to the Criminal Court for

an order (hereinafter referred to as a "freezing order") having the

same effect as an order as is referred to in article 22A(1) of the

Dangerous Drugs Ordinance, and the provisions of the said article

22A shall, subject to the provisions of sub-article (2) of this article,

apply mutatis mutandis to that order.

(2) The provisions of article 24C(2) to (5) of the Dangerous

Drugs Ordinance shall apply to an order made under this article as

if it were an order made under the said article 24C.

(3) Article 22B of the Dangerous Drugs Ordinance shall also

apply to any person who acts in contravention of a freezing order

under this article.

(1) A confiscation order made by a court outside Malta

providing or purporting to provide for the confiscation or forfeiture

of any property of or in the possession or under the control of any

person described in the order shall be enforceable in Malta in

accordance with the provisions of article 24D(2) to (11) of the

Dangerous Drugs Ordinance.

(2) For the purposes of this article "confiscation order"

includes any judgment, decision, declaration, or other order made

by a court whether of criminal or civil jurisdiction providing or

purporting to provide for the confiscation or forfeiture of property

as is described in sub-article (1).

(1) Where the court makes any order as is referred to in

article 5, it shall order the Director of the Asset Recovery Bureau to

conduct inquiries to trace and ascertain the whereabouts of any

moneys or other property, due or pertaining to or under the control

of the person charged or accused or convicted, as the case may be.

(2) Whosoever is required by the Director of the Asset Recovery

Bureau to provide information for the purpose of sub-article (1)

shall comply with the demand within thirty days from the day of

receipt of the demand.

(3) The demand made by the Director of the Asset Recovery

Bureau and any reply thereupon in terms of this article, may be

made by electronic mail.

(1) The Minister may, acting on the advice of the Unit, make

rules or regulations generally with a view to combating money

laundering and funding of terrorism or for the better carrying out of the

provisions of this Act, and in particular, but without prejudice to the

generality of the foregoing, may by such rules or regulations require

credit institutions, financial institutions and other undertakings and

professions operating within the financial sector and other relevant

sectors, to implement measures, procedures, systems and controls to

prevent money laundering and the funding of terrorism, including

identification, risk management, record-keeping, training and reporting.

(2) The Minister may by regulations extend the provisions of

this Act in whole or in part and of any regulations made thereunder

to categories of undertakings and to professions which engage in

activities which, in the opinion of the Minister, are particularly

likely to be used for money laundering purposes or funding of

terrorism.

(3)

The Minister, acting on the advice of the Unit, may make

r e g u l a t i o n s t o t r a n s p o s e , i m p l e m en t a n d g i v e e ff e c t t o t h e

provisions and requirements of directives, regulations and any

other legislative instruments of the European Union requiring

transposition and, or implementation, as they may be amended

from time to time, including any implementing measures that have

been or may be issued thereunder.

(4) The Minister may, in consultation with the Minister

responsible for justice, by regulation amend, alter or add to the list of

offences specified in the Second Schedule to this Act.

(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.

(6) The Minister may prescribe by regulations any matter

required to be prescribed by this Act.

(1) The Minister may, by regulations made under this

Act, establish a committee that shall be referred to as the National

Co-ordinating Committee on Combating Money Laundering and

Funding of Terrorism.

(2) The committee established under sub-article (1) shall draw

up a national strategy and policies to combat money laundering, the

funding of terrorism and the financing of the proliferation of

weapons of mass destruction and co-ordinate any action to be taken

to develop, implement and review the national strategy and

policies, including the co-ordination of national risk assessments

and the actions to be taken to address any threats, vulnerabilities

and risks identified.

(3) The committee established under sub-article (1) shall be

composed of the Permanent Secretary of the Ministry responsible for

finance, the Permanent Secretary of the Ministry responsible for home

affairs, the Permanent Secretary of the Ministry responsible for justice,

the Governor of the Central Bank of Malta, the Commissioner for

Revenue, the Chairman of the Malta Financial Services Authority, the

Chairperson of the Malta Gaming Authority, the Commissioner of

Police, the Attorney General, the Chairman of the Unit and the

Chairperson of the Asset Recovery Bureau or their deputies.

(4) The committee may, whenever it deems so necessary or

expedient, engage one or more persons, whom it considers to be in

possession of suitable expertise, to assist it in carrying out specific tasks

requiring such expertise.

(5) The Chairperson of the committee shall be the Permanent

Secretary of the Ministry responsible for finance.

(6) The Minister shall prescribe by means of regulations the

powers to be conferred on the committee and the procedures it is to

follow for the proper carrying out of its functions.

(7) The remuneration payable, if any, to any member of the

committee shall be determined by the Minister.

(1) The Minister may make rules or regulations to

provide for criminal punishments, administrative penalties and

other measures that may be imposed in respect of any

c on t r a v e n t i on , b re a c h o r fa i lu r e t o c om p l y w i t h a ny r ul e s ,

regulations or directives made under this Act

Provided that

(a)

criminal punishments so imposed shall not exceed a

fine (multa) of one million euro (€1,000,000) or

imprisonment for a term not exceeding five years, or

both such fine and imprisonment as set out in the rules

or regulations concerned; and

(b)

administrative penalties so imposed shall not exceed

(i)

five million euro (€5,000,000); or

(ii) twice the amount of the benefit derived from the

contravention, breach or failure to comply, where

this can be determined; or

(iii) ten per centum (10%) of the total annual turnover

according to the latest approved available financial

statements.

(2) The administrative penalties referred to under sub-article

(1) shall be imposed by the Unit in accordance with policies and

procedures established by the Board of Governors referred to in

article 18, from time to time.

(3) The Unit may, in cross-border cases, co-operate with any

foreign national or supranational body, authority or agency which it

considers to have functions equivalent or analogous to those

mentioned in article 26(1), to co-ordinate the imposition of

administrative penalties or other measures.

(4) Where an administrative penalty or other measure, as

provided for in this article, is imposed in respect of a subject

person carrying out relevant financial business, as defined under

regulations in force from time to time under this Act, the Unit shall

notify the relevant European Supervisory Authority of the action

taken and, where applicable, the European Supervisory Authority

shall also be notified of any pending appeal and the outcome

thereof.

(5) For the purposes of this article and articles 13A and 13B

the term "subject person" has the same meaning assigned to it by

article 14 of this Act.

(1) Whenever a subject person feels aggrieved by an

administrative penalty imposed by the Unit in terms of rules and

regulations made under article 13, and that administrative penalty

exceeds five thousand euro (€5,000), whether imposed in respect of

one or more contraventions, the subject person may appeal such

administrative penalty both on points of law and fact.

(2) The appeal as referred to in sub-article (1) shall lie to the

Court of Appeal (Inferior Jurisdiction) constituted in terms of

article 41(9) of the Code of Organization and Civil Procedure.

(3) An appeal to the Court of Appeal (Inferior Jurisdiction) in

terms of sub-article (1) shall be filed in the registry of the said

Court within twenty days from the date when the imposition of the

administrative penalty is notified to the subject person, 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 relating to appeals.

(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.

(6) For the purposes of safeguarding the confidentiality of

information and documents relating to the proceedings, the appeal

before the Court of Appeal (Inferior Jurisdiction) filed in terms of

this article shall be heard in camera and saving the provisions of

article 13C the judgment shall not be published.

(1)

An administrative penalty, served on the subject

person against whom it is imposed by means of a notice in writing,

which is not appealed in accordance with the provisions of article 13A

and which is not paid within twenty days from the date of notification,

shall be recoverable as a civil debt, and the notice in writing shall,

upon the service of a copy thereof by means of a judicial act on the

subject person indicated in the notice, constitute an executive title for

all effects and purposes of Title VII of Part I of Book Second of the

Code of Organization and Civil Procedure.

(2)

Where the administrative penalty is appealed and is

subsequently confirmed in whole or in part, the administrative penalty

shall be enforceable in accordance with the procedure provided for in

sub-article (1).

(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 be disproportionate, 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 administrative measure 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.

PART II

FINANCIAL INTELLIGENCE ANALYSIS UNIT

In this Part, unless the context otherwise requires

"competent authority" shall have the same meaning assigned to it by

regulations in force from time to time under this Act or as may be

prescribed under this Act;

"designated authority" means the Executive Police, the Attorney

General and any Magistrate conducting inquiries relating to the "in

genere" in terms of article 546 of the Criminal Code;

"Europol" has the same meaning as assigned to it by Regulation

(EU) 2016/794 of the European Parliament and of the Council of 11

May 2016;

"financial analysis" means the results of operational and strategic

analysis that has already been carried out by the Unit in pursuance of

its tasks and functions under article 16(1)(a) and (f);

"financial information" means any type of information or data,

such as data on financial assets, movement of funds or financial

business relationships, which is already held by the Unit to prevent,

detect, and effectively combat money laundering and terrorist

financing, other than information or data gathered or held by the Unit

in relation to its supervisory function under article 16(1)(c), article

16(1)(k)(ii), and article 26;

"law enforcement information" means any type of information or

data, including but not limited to information on investigations,

freezing or seizure of assets or other investigative or provisional

measures, and information on convictions and on confiscation and

criminal records, which is already held by

(a) any designated authority in the context of preventing,

detecting, investigating, or prosecuting criminal

offences; and

(b) public authorities or private entities in the context of

preventing, detecting, investigating or prosecuting

criminal offences, and which is available to designated

authorities in line with the provisions of any other law

applicable to them;

"subject person" shall have the same meaning assigned to it by

regulations in force from time to time under this Act or as may be

prescribed under this Act;

"supervisory authority" shall have the same meaning assigned to

it by regulations in force from time to time under this Act or as may

be prescribed under this Act;

"the Board" means the Board of Governors referred to in article

18;

"the Chairman" means the Chairman of the Board appointed

under article 20;

"the Deputy Chairman" means the Deputy Chairman of the Board

appointed under article 20;

"the Director" means the Director of the Unit appointed or

recruited under article 23.

(1) There shall be a government agency, to be known as

the Financial Intelligence Analysis Unit.

(2) The Unit shall be a body corporate having a distinct legal

personality and shall be capable, subject to the provisions of this

Act, of entering into contracts, of concluding memoranda of

understanding or other agreements including with any foreign

body, authority or agency as is referred to in article 16(1)(k), of

acquiring, holding and disposing of any kind of property for the

purposes of its functions, of suing and being sued, and of doing all

such things and entering into all such transactions as are incidental

or conducive to the exercise or performance of its functions under

this Act, including the borrowing of money.

(3) The Unit shall enter into an agency performance agreement

with the Minister which agreement shall determine the funding of

the agency and, without prejudice to the generality of article 16(1),

any specific tasks within the scope of the functions of the Unit

which are to be addressed and achieved by the Unit.

(4) The members of the Unit and all its employees shall abide

by any Code of ethics applicable to public officers and shall,

subject to any law to the contrary, have the same obligations

thereunder

Provided that the Unit may, with the concurrence of the

M i n i s t e r, d r a w u p s e r v i c e v a l u e s a n d a C o d e o f E t h i c s t o

supplement any public service Code of Ethics in respect of the

Unit.

(1) Subject to the other provisions of this Act and without

prejudice to any other power or function conferred on it by this Act

or by any other law, the Unit shall be responsible for the collection,

collation, processing, analysis and dissemination of information

with a view to preventing, detecting and effectively combating

money laundering and funding of terrorism and without prejudice

to the generality of the aforesaid shall in particular have the

following functions

(a) to receive reports of transactions or activities

suspected to involve money laundering or funding of

terrorism or property that may have derived directly or

indirectly from, or constitutes the proceeds of,

criminal activity made by any subject person in

pursuance of any regulation made under article 12, to

supplement such reports with such additional

information as may be available to it or as it may

demand, to analyse the report together with such

additional information and to draw up an analytical

report on the result of such analysis;

(b) to send any analytical report as is referred to in

paragraph (a) to the Commissioner of Police for

further investigation if having considered the report

received under paragraph (a), the Unit also has

reasonable grounds to suspect that the transaction or

activity is suspicious and could involve money

laundering or funding of terrorism or property that

may have derived directly or indirectly from, or

constitutes the proceeds of, criminal activity;

(c) to monitor compliance by subject persons and to co-

operate and liaise with any authority in or outside Malta

having supervisory or regulatory functions to ensure

such compliance;

(d) to send to the Commissioner of Police together with

any analytical report sent in accordance with

paragraph (b) or at any time thereafter any

information, document, analysis or other material in

support of the report;

(e) to instruct any subject person to take such steps as it

may deem appropriate to facilitate any money-

laundering or funding of terrorism analysis in general

or the analysis of any particular report received by the

Unit under paragraph (a);

(f)

to gather information on the financial and commercial

activities in the country for analytical purposes with a

view to detecting areas of activity which may be

vulnerable to money laundering or funding of

terrorism;

(g) to compile statistics and records, disseminate

information, make recommendations, issue guidelines

and advice the Minister on all matters and issues

relevant to the prevention, detection, analysis,

investigation, prosecution and punishment of money

laundering or funding of terrorism offences;

(h) to promote the training of, and to provide training for,

personnel employed with any subject person in respect

of any matter, obligation or activity relevant to the

prevention of money laundering or funding of

terrorism;

(i)

to consult with any person, institution or organization

as may be appropriate for the purpose of discharging

any of its functions;

(j)

to advise and assist persons, whether physical or legal,

to put in place and develop effective measures and

programmes for the prevention of money laundering

and funding of terrorism;

(k) upon request or on its own motion and subject to such

conditions and restrictions as it may determine, to

cooperate and exchange information with

(i)

any foreign body, authority or agency which it

considers to have functions equivalent or analogous

to those mentioned in paragraphs (a) and (b)

regardless of its nature or status;

(ii) 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

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;

(iii) any other competent authority;

(l)

to report to the Commissioner of Police any activity

which it suspects involves money laundering or the

underlying criminal activity, or funding of terrorism

and of which it may become aware in the course of the

discharge of any of its functions at law;

(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.

(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.

(3) The Unit shall at least once a year prepare a report on its

activities in general to the Minister and shall afford to the Minister

facilities for obtaining information with respect to its property and

its activities in general and furnish him with returns, accounts and

other information with respect thereto.

The Unit, its Board, officers and employees shall not be

liable in damages for anything done or omitted to be done in the

discharge or purported discharge of any function under this Act,

unless the act or omission is shown to have been done or omitted to

be done, as the case may be, in bad faith.

(1) The Unit shall consist of a Board and a Director.

(2) The Board shall be responsible for the policy to be adopted

by the Unit and to be executed and pursued by the Director and to

ensure that the Director carries out that policy accordingly. The

Board shall also be responsible for advising the Minister as

provided in article 16(1)(g).

(3) The Director shall be responsible for the execution of the

policy established by the Board and for carrying out all the

functions of the Unit not attributed by this Act to the Board in

accordance with the policy and subject to the general supervision of

the Board.

(4) The Board may appoint any officer or any member of the

staff of the Unit to act as director when the Director is absent,

unable to act or on vacation or during any vacancy in the office of

the Director.

(1)

The Board shall consist of

(a) the Commissioner of Police or a senior official selected by

him to serve as a member of the Board in his stead from

amongst the officials receiving a full-time employment

salary with the Malta Police Force;

(b) the Commissioner for Revenue or a senior official selected

by him to serve as a member of the Board in his stead from

amongst the officials receiving a full-time employment

salary with the revenue departments;

(c) three (3) members appointed by the Minister in the manner

provided in sub-article (2);

(d) not more than two (2) other members, as may be requested

by the Board, appointed by the Minister in the manner

provided in sub-article (3)

Provided that the Commissioner of Police and the

Commissioner for Revenue shall inform the Minister whether they are to

sit on the Board or otherwise who they have selected as a member.

(2) The Minister shall appoint the three (3) members referred to in

sub-article (1)(c) by selecting one (1) member from each of three (3)

panels, and each panel shall have at least three (3) persons, nominated

respectively by the Governor of the Central Bank of Malta, the

Chairman of the Malta Financial Services Authority, and the

Chairperson of the Malta Gaming Authority from amongst the officials

receiving a full-time employment salary with their respective authority

or entity.

(3) The Minister shall appoint each additional member as may

be requested by the Board in pursuance of the provisions of sub-

article (1)(d) from a panel of not less than three persons nominated

by the authority to be indicated by the Board from amongst the

officials receiving a full-time employment salary of the respective

authority or entity with respect to each additional member.

(4) A member of the Board selected in terms of paragraph (a) or

paragraph (b) of sub-article (1) or appointed under sub-articles (2) or

(3) shall hold his office for a period of five (5) years and may, on the

expiration of his term of his office, be selected or appointed again to

the Board, and all members of the Board shall receive such

remuneration as the Minister may, from time to time, determine.

(5) The members of the Board shall discharge their duties in

their own individual judgement and shall not be subject to the

direction or control of any other person or authority.

(6) A person shall not be qualified to be appointed, selected, or

to hold office as a member of the Board if he

(a) is legally incapacitated; or

(b) has been declared bankrupt or has made a composition

or scheme of arrangement with his creditors; or

(c) has been convicted of an offence against this Act or of

an offence listed in the First Schedule or in the Second

Schedule or of an offence of money laundering against

the provisions of the Dangerous Drugs Ordinance or of

the Medical and Kindred Professions Ordinance; or

(d) is required to be an officer receiving a full-time

employment salary with a specific authority or entity, and

he does not or no longer meets the said requirement; or

(e) is a salaried official of or is otherwise employed with

or in the service of a subject person or is in any other

manner professionally connected to a subject person.

(7) A member of the Board may be relieved of office by the

Minister, after consultation with the official by whom the member

was recommended, on the ground of inability to perform the

functions of his office, whether due to infirmity of mind or of body,

or to any other cause, or of misbehaviour; and, for the purposes of

this sub-article, repeated unjustified non-attendance of Board

meetings may be deemed to amount to misbehaviour

Provided that a member selected in terms of paragraph (a) or

(b) of sub-article (1) may only be relieved of his office by the

Commissioner of Police or the Commissioner for Revenue, as may be

applicable, on the grounds that such member is no longer able to

perform the functions of his office as set out in this sub-article, and the

Minister shall be informed of any such removal.

(8) A member of the Board may also resign from office by letter

addressed to the Minister or, where he has been selected in terms of

paragraph (a) or (b) of sub-article (1), by letter addressed to the

Commissioner of Police or the Commissioner for Revenue, as may be

applicable, and the Minister.

(9) Where any vacancy occurs in the composition of the

members of the Board for any reason other than the lapse of the

term of office, that vacancy shall, for the remainder of the term of

office which has become vacant, be filled

(a) by another member selected by the Commissioner of

Police or the Commissioner for Revenue, or

themselves, as may be applicable, where the vacancy

relates to a member selected in accordance with

paragraph (a) or (b) of sub-article (1); or

(b) by another member appointed by the Minister from

among a panel of not less than three (3) persons

nominated by the official who nominated the panel from

among whom the member who vacated office had been

appointed in accordance with paragraph (c) or (d) of sub-

article (1), with the nominations being selected from

amongst the officials receiving a full-time employment

salary with the respective authority or entity.

(10) For the purposes of this article "revenue departments" shall

have the same meaning attributed to it under the Commissioner for

Revenue Act.

A Chairman and Deputy Chairman shall be appointed by

the Prime Minister after consultation with the Minister from among

the members of the Board. The Chairman shall be the Head of the

Unit and the Deputy Chairman shall have all the powers and

perform all the functions of the Chairman during his absence or

inability to act as Chairman or while he is on vacation or during

any vacancy in the office of chairman.

(1) The Board shall meet within one month from its

constitution and as often as may be necessary or expedient

thereafter, but in no case less frequently than ten times in each year.

The meetings of the Board shall be called by the Chairman on his

own initiative or at the request of any two of the other members or

at the request of the Director.

(2) The Board shall not act unless a quorum consisting of the

C ha i rm a n o r D e p ut y C hai rm a n a n d n ot l e s s t ha n tw o ot he r

members is present.

(3) The meetings of the Board shall be chaired by the

Chairman, or in his absence, by the Deputy Chairman.

(4) The decisions of the Board shall be adopted by a simple

majority of the votes of the members present and voting and in the

event of an equality of votes the member presiding at the meeting

shall have and exercise a second or casting vote.

(5) The Director shall be entitled to attend the meetings of the

Board and to take part in the discussions, but shall have no vote.

Saving the provisions of sub-article (2) the absence of the Director

from any meeting shall not invalidate the proceedings of the

meeting.

(6) Any vacancy among the members of the Board, and any

participation therein by a person not entitled so to do, shall not

invalidate the proceedings of the Board.

(7) Subject to the provisions of this Act, the Board may

regulate its own procedure.

(8) All acts done by any person acting in good faith as a

m e m b e r o f t h e U n i t s h a l l b e v a l i d as i f h e w e r e a m e m b e r

notwithstanding that some defect in his appointment or

qualification be afterwards discovered.

In case of emergency, decisions shall be taken by at least

two members of the Board one of whom shall be the Chairman or

Deputy Chairman.

(1)

The Director of the Unit shall be 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.

(1) The Commissioner of Police shall detail a police

officer not below the rank of Inspector to act as a liaison officer to

liaise with the Unit.

(2) Notwithstanding anything to the contrary in any other law

the police liaison officer detailed as aforesaid shall be bound to

keep secret and confidential any information that may come to his

knowledge as a result of his duties as a liaison officer with the Unit

and shall not disclose such information to any person other than a

member of the Unit or any of its staff in the course of the exercise

of his functions as a liaison officer with the Unit.

Provided that where the Unit has submitted a report to the

Police in accordance with the provisions of this Act the Unit may,

without prejudice to the provisions of article 31(4), authorise the

police liaison officer to disclose to the Police, or to any other

competent authority identified by the Unit as having an interest in

the investigation of the report, any information relevant to the said

report that may have come or may come to the knowledge of the

police liaison officer in the course of his assignment with the Unit.

(3) The police liaison officer shall, subject to complying with

any internal requirements of the police force, make available to the

Unit or to any member of its staff any information at the disposal of

the police or which is part of police records to the extent that such

information is relevant to the exercise of the functions of the Unit.

(4) The police liaison officer shall assist the Unit in the

analysis and processing of reports received by the Unit under

article 16(1)(a) and of information and intelligence data collected

by the Unit in the exercise of its functions and shall advise the Unit

on investigative techniques and on all law enforcement issues.

(1) The legal and judicial representation of the Unit shall

vest in the Chairman and in his absence in the Deputy Chairman

Provided that the Unit may appoint any one or more of its

other members or of its officers or employees to appear in the name

and on behalf of the Unit in any judicial proceedings and in any act,

contract, instrument or other document whatsoever.

(2) Any document purporting to be an instrument made or

issued by the Unit and to be signed by the Chairman or by the

Deputy Chairman on behalf of the Unit shall be received in

evidence and shall, until the contrary is proved, be deemed to be an

instrument made or issued by the Unit.

(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.

(1) The Unit may, whenever it deems so necessary or

expedient, engage one or more persons, whom it considers to be in

possession of suitable expertise, to assist it in carrying out specific

tasks requiring such expertise, and, for this purpose, the Unit may

impose such conditions as it considers necessary.

(2) Article 33 and article 34(1) shall mutatis mutandis apply to

any person engaged by the Unit under this article.

(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.

(2) Without prejudice to the special provisions of any other

law applicable to them, the supervisory authorities shall extend all

assistance and co-operation to the Unit in the fulfilment of its

responsibilities under this Act.

(3) In pursuance of its responsibilities under the provisions of

article 26, the Unit may request a supervisory authority to do all or

any of the following and the supervisory authority shall not

unreasonably withhold its assistance

(a) to provide the Unit with such information of which the

supervisory authority may become aware of in the

course of its supervisory functions and which indicates

that a subject person falling under the competence of

the supervisory authority may not be in compliance

with any requirements under this Act or any

regulations made thereunder;

(b) to carry out, on behalf of or jointly with the Unit, on-

site or off-site examinations on subject persons falling

under the competence of the supervisory authority with

the aim of monitoring that person’s compliance with the

provisions of this Act and any regulations made

thereunder and to report to the Unit accordingly.

(4) The Unit may authorise any of its officers or employees to

accompany the supervisory authority in any on-site examination as

may be required by the Unit under sub-article (3)(b) and any such

officer or employee shall be entitled, on producing, if requested,

evidence of his authority, to enter any premises of the subject

person on whom an examination is being undertaken.

(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.

(1) In carrying out its functions under article 16(1)(k)(i),

the Unit may exchange any information that may be relevant for the

processing or analysis of information or to investigations regarding

financial transactions or activities related to money laundering or

the underlying criminal activity, or funding of terrorism and the

persons involved, regardless of the type of underlying criminal

activity, and even where the underlying criminal activity is not known

at the time of exchange

Provided that the Unit may, in exceptional and urgent

circumstances and subject to operational limitations, promptly

exchange financial information or financial analysis relevant for the

processing or analysis of information related to terrorism or organised

crime associated with terrorism, with any authority, body, or agency of

a Member State considered to have functions equivalent or analogous

to those of the Unit under article 16(1)(a) and (b)

Provided further that the Unit shall apply and make use of

appropriate, protected and secure channels, mechanisms and

technologies, to cooperate and exchange information as provided in

this sub-article.

(2) The Unit may impose conditions and restrictions on the use

of exchanged information as it 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 that the disclosure of information shall be subject

to the condition that the information or documents disclosed shall

not be used for purposes other than those indicated by the Unit nor

shall they be disseminated to any other person, body, authority or

agency, without the express prior consent of the Unit.

(3) The consent referred to in the proviso to sub-article (2)

shall be provided by the Unit promptly, regardless of the type of

underlying criminal activity and shall not be withheld unless in the

opinion of the Unit such disclosure

(a) could lead to

the

impairment

of

a

criminal

investigation or;

(b) would not be in accordance with the fundamental

principles of Maltese law.

(4) The Unit shall respond, in a timely manner, to requests for

information made by any foreign authority, body or agency

considered to have functions equivalent or analogous to those of

the Unit under article 16(1)(a) and (b)

Provided that the Unit may refuse to disclose any document

or information

(a) if in its opinion such disclosure would not be in

accordance with fundamental principles of Maltese

law;

(b) if in its opinion the foreign authority, body or agency

does not have duties of secrecy and confidentiality that

are at least equivalent to those of the Unit or does not

provide effective measures to protect confidentiality

and secrecy; or

(c) on the grounds of lack of reciprocity or repeated non-

cooperation by the foreign authority, body or agency

making the request

Provided further that where the request for information is

m a d e b y a n a u t h o r i t y, b o d y o r a g e n c y o f a M e m b e r St a t e

considered to have functions equivalent or analogous to those of

the Unit under article 16(1)(a) and (b), the Unit may refuse to

disclose any document or information only if in its opinion such

disclosure would not be in accordance with fundamental principles

of Maltese law.

(5) Where the Unit refuses to grant consent under sub-article

(3) or to disclose information in terms of the provisos to sub-article

(4), an explanation shall be provided.

(6) Without prejudice to the other provisions of this article,

where the Unit receives information pursuant to its function under

article 16(1)(a) which concerns another Member State, it shall

promptly forward any relevant information to the authority, body or

agency within that Member State, considered to have functions

equivalent or analogous to those of the Unit under article 16(1)(a)

and (b).

(7) Where the Unit receives information, data or documents from a

foreign authority, body or agency considered to have functions

equivalent or analogous to those of the Unit under article 16(1)(a) and

(b), the Unit shall comply with any restriction and condition on the use

of such information, data or documents imposed by that foreign

authority, body or agency.

Without prejudice to the generality of the provisions of the

Act, where the Unit is in possession of documentation or

information which it considers to be of interest and relevance to

any competent authority in the pursuance of its functions, the Unit

may, subject to any conditions and restrictions that the Unit may

impose, transmit such documentation or information to the relevant

competent authority

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

PREVENTION OF MONEY LAUNDERING

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.

(1)The Unit shall, in accordance with the applicable

provisions of this Act, and without prejudice to the provisions of

article 34(3), co-operate with any designated authority and reply in

a timely manner, on a case-by-case basis, to reasoned requests

made by such designated authorities for financial information and,

or financial analysis, where such information is necessary for the

prevention, detection, investigation or prosecution of serious

criminal offences

Provided that, for the purposes of this article, the term "serious

criminal offence" shall mean the offences listed in Annex I to

Regulation (EU) 2016/794, tax evasion, and any other offence under

the National Interest (Enabling Powers) Act

Provided further that the provisions of article 34(4) shall

mutatis mutandis apply in relation to any financial information or

financial analysis disclosed by the Unit in terms of this sub-article.

(2) The Unit may refuse to disclose any financial

information or financial analysis pursuant to sub-article (1) on the

grounds as laid down under article 34(2)(b) to (f), and it shall provide

an explanation for such a refusal.

(3) Any request received by the Unit pursuant to sub-article

(1) shall be recorded by the Unit, which record shall include

(a) the name and contact details of the authority and of the

officer or employee requesting the information;

(b) the recipients of the results of the query or search, in

so far as possible;

(c) the case reference number that the requesting authority

assigns to the case in relation to which the request for

information is made;

(d) the subject matter of the request; and

(e) the manner in which the request was executed,

including the method used for the dissemination of

information or analysis requested, whenever such

request has been acceded to.

(4)

Records referred to in sub-article (3) shall be kept for a

period of five (5) years from the date on which the request was

received and shall be used solely for the purpose of checking the

lawfulness of the processing of personal data.

(5) The Unit shall, upon a request from the Information and

Data Protection Commissioner, make available any record as referred

to in sub-article (3).

(6) In addition and without prejudice to the powers of the

Unit under articles 30 and 30A, the Unit may request, and

designated authorities shall disclose on a case-by-case

basis, any law enforcement information necessary for the

prevention, detection and combating of money

laundering, underlying criminal activity and terrorist

financing.

(1)Without prejudice to any restriction which the Unit may

be subject to, the Unit shall, upon receipt of duly justified requests

made by Europol within the limits of its responsibility in the

performance of its tasks and on a case-by-case basis, exchange any

financial information and, or financial analysis as if the request was

received from a foreign authority, body or agency having functions

equivalent or analogous to those of the Unit under article 16(1)(a)

and (b)

Provided that, in addition to the grounds as laid down

under article 34(2)(b) to (f), the Unit may refuse to disclose any

financial information or financial analysis if

(a) the provision of such information or analysis would be

contrary to the essential interests of the security of

Malta;

(b) the provision of such information or analysis would

jeopardise the safety of an individual; or

(c) the provision of such information would disclose

information relating to the organisations or specific

intelligence activities in the field of national security.

(2)

Where the Unit refuses to disclose information in terms

of sub-article (1), an explanation shall be provided.

(3)

The provisions of article 27C(3), (4) and (5) shall mutatis

mutandis apply in relation to the record keeping of requests for

information received by the Unit from Europol pursuant to this

article.

(1) Where the Unit is informed by a subject person that a

transaction to be carried out is suspected or known to be related to

money laundering or the funding of terrorism, or to involve

property that may have derived directly or indirectly from, or

constitutes the proceeds of, criminal activity, or where, on the basis

of information in its possession, including upon a request by a

foreign body, authority or agency which is considered to have

functions equivalent or analogous to those of the Unit, the Unit

knows or suspects that a transaction to be carried out by a subject

person is related to money laundering or the funding of terrorism,

or involves property that is derived from or constitutes the proceeds

of criminal activity, the Unit may, where it considers such action

n e c e s s a r y, o p p o s e t h e e x e c u t i o n o f t h e t r a n s a c t i o n a n d a

notification of such opposition shall be made to the subject person

concerned by any written means

Provided that where the Unit opposes the execution of the

transaction following receipt of information from the subject

person, the notification of such opposition shall be made to the

subject person by not later than one working day following the day

on which the information was received by the Unit and the subject

person shall, within such period, not carry out the transaction in

question.

(2) The opposition by the Unit shall suspend the execution of

the transaction for a period of one working day following the day of

the notification by the Unit referred to in sub-article (1), unless the

Unit shall, by any written means, authorise earlier the execution of

the transaction.

(3) The Unit may, at its discretion, extend the period referred to

in sub-article (2) by a further working day where this is considered

to be necessary by the Unit and such extension shall be notified to

the subject person before the lapse of the period referred to in sub-

article (2).

(4) The obligation not to execute a transaction suspended in

terms of this article shall prevail over any legal or contractual

obligation to which a subject person may be subject.

(5) Where the Unit does not oppose the execution of the

transaction as provided in sub-article (1), the subject person

concerned may proceed with the execution of the transaction upon

the lapse of the period referred to therein and where a notification

of opposition has been made to the subject person in accordance

with sub-article (1), the subject person concerned may proceed with

the execution of the transaction upon the lapse of the period

referred to in sub-article (2) or the extended period referred to in

sub-article (3), as the case may be, unless in the meantime an

attachment order has been served on the subject person.

(6) Where the Unit receives a request from a foreign body,

authority or agency referred to in sub-article (1), it shall

acknowledge receipt of that request and shall subsequently notify

such foreign body, authority or agency of the decision whether the

execution of the transaction subject to the request has been opposed

or otherwise.

Where any subject person is aware or suspects that a

transaction which is to be executed may be linked to money

laundering, or funding of terrorism or may involve property that

may have derived directly or indirectly from, or constitutes the

proceeds of, criminal activity but it is unable to inform the Unit

before the transaction is executed, either because it is not possible

to delay executing the transaction due to its nature, or because

delay in executing the transaction could prevent the prosecution of

the individuals involved in the suspected money laundering or the

underlying criminal activity, or funding of terrorism, the subject

person shall inform the Unit immediately after executing the

transaction giving the reason why the Unit was not so informed

before executing the transaction.

(1) When the Unit receives a report as is referred to in

article 16(1)(a) or when from information in its possession the Unit

suspects that any subject person may have been used for any

transaction suspected to involve money laundering, funding of

terrorism or property that may have derived directly or indirectly

from, or constitutes the proceeds of, criminal activity, the Unit may

demand from the subject person making the report or from the

subject person which is suspected of having been used for any

transaction suspected to involve money laundering, funding of

terrorism or property that may have derived directly or indirectly

from, or constitutes the proceeds of, criminal activity, as well as

from any other subject person, the police, any Government

Ministry, department, agency or other public authority, or any other

person, physical or legal, and from any supervisory authority, any

additional information that it deems useful for the purpose of

integrating and analysing the report or information in its

possession.

(2) Notwithstanding anything contained in the Professional

Secrecy Act and any obligation of secrecy or confidentiality under

any other law the subject person or any other person, physical or

legal, and any authority or entity from whom information is

demanded by the Unit in pursuance of the provisions of sub-article

(1) shall communicate the information requested to the Unit and for

th e p ur po s e s of a r ti c l e 2 57 o f th e Crim in al Co de an y such

disclosure shall be deemed to be a disclosure of information to a

public authority compelled by law

Provided that nothing in this sub-article shall imply any

obligation on the Attorney General to communicate to the Unit any

information which in any way relates to or is connected with or

came into his possession as a result of the exercise by him of any

powers referred to in article 91(3) of the Constitution or any

obligation on any person to communicate to the Unit any

information which would in legal proceedings be protected from

disclosure by article 642(1) of the Criminal Code or by article

588(1) of the Code of Organization and Civil Procedure.

(3) Any information which the Unit demands in pursuance of

sub-article (1) shall be provided in a timely manner and within such

time period as the Unit may direct, or as may be established by

regulations made under this Act.

(1) Notwithstanding anything contained in any other law,

the Unit may likewise demand form any person, authority or entity,

as is referred to in article 30, any information it deems relevant and

useful for the purpose of pursuing its functions under article 16.

(2) The provisions of article 30(2) and (3) shall mutatis

mutandis apply where any information is demanded by the Unit

under this 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.

(1) When the Unit receives a report as is referred to in

article 16(1)(a) or when from information in its possession the Unit

suspects that any subject person may have been used for any

transaction suspected to involve money laundering or funding of

terrorism or that property is being held by a subject person that may

have derived directly or indirectly from, or constitutes the proceeds

of, criminal activity or from an act or acts of participation in

criminal activity, the Unit may require the subject person to

m o n i t o r f o r a s p e c i f i e d p e r io d t h e t r a n s a c t i o n s o r b a nk i n g

operations being carried out through one or more accounts in the

name of any person suspected of the said offences, or through one

or more accounts suspected to have been used in the commission of

any of the said offences or which could provide information about

the offences or the circumstances thereof, whether before, during or

after the commission of the offences, including any such accounts

in the name of legal persons. The subject person shall communicate

to the Unit the information resulting from the monitoring and the

Unit may use that information for the purpose of carrying out its

analysis and reporting functions under this Act.

(2) Where a monitoring order has been made or applied for,

whosoever, knowing or suspecting that the analysis is taking place,

discloses that an analysis is being undertaken or makes any other

disclosures likely to prejudice the said analysis shall be guilty of an

offence and shall, on conviction, be liable to a fine (multa) not

exceeding eleven thousand and six hundred and forty six euro and

eighty-seven cents (11,646.87) or to imprisonment not exceeding

twelve months, or to both such fine and imprisonment

Provided that in proceedings for an offence under this sub-

article, it shall be a defence for the accused to prove that he did not

know or suspect that the disclosure was likely to prejudice the

analysis.

(3) The provisions of article 30(2) shall mutatis mutandis apply

where any information is demanded by the Unit under this article.

The Unit may, in order to combat money laundering and

the funding of terrorism, to ensure compliance by subject persons

with their obligations under this Act and any regulation made

thereunder, and to prevent the financial and other systems from

being used for criminal purposes, issue directives in writing

requiring any subject person to do or to refrain from doing any act,

and such directives shall be complied with within the time and in

the manner stipulated therein.

(1) Where, following an analysis of a report received by

the Unit under article 16(1)(a) and of any other information

relevant to that report, the Unit is of the opinion that a reasonable

suspicion of money laundering or funding of terrorism or a

reasonable suspicion that property may have derived directly or

indirectly from, or constitutes the proceeds of criminal activity

subsists, an analytical report drawn up as is referred to under article

16(1)(a) shall be transmitted to the Police for further investigation.

(2) The provisions of sub-article (1) shall also apply mutatis

mutandis to any knowledge or suspicion of money laundering or

the underlying criminal activity, or funding of terrorism, which the

Un i t m a y h a v e g a t he r e d o r f or m ed f r o m in f o r m a ti o n i n i t s

possession without having received any report as is referred to

under sub-article (1).

(3) Where the Unit transmits information to the Police in

pursuance of the provisions of sub-articles (1) and (2) and a subject

person over which another authority or agency has supervisory or

regulatory functions is involved, the Unit shall inform the said

authority or agency of actions taken.

(4) Where the Unit transmits information to the Police in

pursuance of sub-articles (1) and (2) it shall thereafter transmit to

the Police any further relevant information in respect of the

knowledge or suspicion communicated to the Police as aforesaid.

(5) The Police shall, upon request and in a timely manner,

inform the Unit on the use made of information provided by the

Unit under this article and on the outcome of any investigations

carried out pursuant to the information provided.

(1) Where the Unit provides information to a competent

authority as provided for under this Act, that competent authority

shall inform the Unit, upon request and in a timely manner, with

information on the use made of the information provided by the

Unit and any outcome of any investigation or any other action

undertaken on the basis of that information.

(2) For the purposes of this article the term competent

authority shall only include the Comptroller of Customs when

carrying out duties under any regulations that may be issued or are

in force from time to time relating to the cross border movement of

cash and other financial instruments.

The Unit shall, at the request of the subject person or on its

own motion, give to the subject person which makes a report to the

Unit as provided for under sub-article 16(1)(a) such information as the

Unit deems appropriate to keep the subject person informed about the

outcome of the report submitted and any other information which the

Unit considers to be of interest to the subject person to regulate its

affairs and to assist it in carrying out its duties under this Act or any

regulation made thereunder.

Any official or employee of the Unit who, in any

circumstances other than those provided for in the proviso to article

24(2), discloses to the person concerned or to a third party that an

analysis is being carried out by the Unit, or that information has

been transmitted to the Unit by a subject person, or that the Unit

has transmitted information to the police for investigation, shall be

guilty of an offence and liable on conviction to a fine (multa) not

exceeding one hundred and sixteen thousand and four hundred and

s i x t y - e i g h t e u r o a n d s i x t y - s e v e n c e n t s ( 11 6 , 4 6 8 . 6 7 ) o r t o

imprisonment for a term not exceeding five years or to both such

fine and imprisonment.

(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.

(2)

Without prejudice to the provisions of article

27A, the Unit shall not be obliged to provide any information

or disclose any documents, and may refuse to do so if

(a) such information or document was received by the

Unit in carrying out its functions under article

16(1)(a), (b) and (k); or

(b) there are reasonable grounds to consider that such

disclosure could impede an inquiry, investigation or

any other proceeding in course in Malta; or

(c) providing such information or disclosing such

document may, in the opinion of the Unit, prejudice

any analysis; or

(d) due to exceptional circumstances, such disclosure

would be clearly disproportionate to the legitimate

interests of Malta or of a natural or legal person; or

(e) such disclosure would not be in accordance with

fundamental principles of Maltese law; or

(f)

such disclosure would be irrelevant with regard to the

purpose for which it has been requested

Provided that any refusal under this sub-article shall be clearly

explained to the body or authority requesting the disclosure of the

document or information.

(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.

(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.

The revenue of the Unit shall consist of

(a) fees charged by and payable to the Unit in respect of its

supervisory functions and other services rendered by

it;

(b) rents, interests and profits accruing from property,

deposits and other assets of the Unit;

(c) any monies advanced to it by the Minister;

(d) any other money receivable or received by the Unit.

(1) The Unit may

(a) hold accounts with any bank;

(b) invest any of its liquid assets in short and medium term

first class securities as approved by the Board;

(c) acquire, purchase, lease or dispose of any movable or

immovable property required for the conduct of its

business or for any purposes ancillary or incidental to

the performance of its functions under this Act.

(2) For the purpose of carrying out any of its functions under

this Act, the Unit may, with the approval in writing of the Minister,

borrow or raise money in such manner, from such person, body or

authority, and under such terms and conditions as the Minister may

in writing approve.

The Minister may make advances to the Unit of such sums

as the Minister may consider to be required by the Unit for carrying

out any of its functions under this Act, and may make such

advances on such terms and conditions as the Minister may deem

appropriate. Any such advances may be made by the Minister out

of the Consolidated Fund, and without further appropriation other

than this Act, by warrant under his hand authorising the Accountant

General to make such advances.

(1) The Director shall, not later than six weeks before the

end of each financial year, submit to the Board estimates of the

income and expenditure of the Unit for the following financial

year

Provided that the estimates for the first financial year of the

Unit shall be prepared and adopted within such time as the Minister

may by notice in writing to the Unit specify.

(2) In the preparation of such estimates the Unit shall

endeavour to ensure that the total revenues of the Unit are at least

sufficient to meet all sums properly chargeable to its Income and

Expenditure Account, including but without prejudice to the

generality of that expression, depreciation.

(3) The estimates shall be made out in such form and shall

contain such information and such comparisons with previous years

as the Board may direct.

(4) Before the end of each financial year the Board shall

consider and adopt, with or without amendments as the case may

be, the estimates submitted to it for the following financial year.

(5) If in respect of any financial year it is found that the amount

approved by the Board is not sufficient or a need has arisen for

expenditure for a purpose not provided for in the estimates, the

Director may cause supplementary estimates to be prepared and

sent forthwith to the Board for adoption and in any such case the

provisions of this Act applicable to the estimates shall as near as

practicable apply to supplementary estimates.

All profits realised by the Unit shall be put to a reserve

fund which shall be used for such purposes as the Unit may deem to

be required to meet the objects of the Unit, including the repayment

of any liabilities.

The financial year of the Unit shall begin on the first day of

January and end on the thirty-first day of December

Provided that the first financial year shall begin at the date

of commencement of this article and shall end on the thirty-first

day of December of the following year.

The Unit shall keep proper books of account in such

manner as the Minister may from time to time direct. Such accounts

shall be audited by auditors appointed by the Board with the

concurrence of the Minister from among persons qualified to be

appointed as auditors of a company under the law for the time

being in force in Malta, as if the Unit were such a company, and

shall moreover be subject to audit by the Auditor General.

(1) The Unit shall, as soon as may be but not later than

three months after the close of each financial year, transmit to the

Minister

(a) a copy of the annual accounts certified by the auditors;

(b) a report on the operations of the Unit during the year.

(2) The report referred to in sub-article (1) shall be laid on the

Table of the House by the Minister not later than six weeks after its

receipt, or where the House is during the period not in session not

later than the second week after the House resumes its sittings.

The Unit shall be exempted from any liability for the

payment of income tax and duty on documents and transfers under

any law for the time being in force.

PREVENTION OF MONEY LAUNDERING

PREVENTION OF MONEY LAUNDERING

PREVENTION OF MONEY LAUNDERING

PREVENTION OF MONEY LAUNDERING