Prevention of Money Laundering and Funding of Terrorism

L.N. 430 of 2018

PREVENTION OF MONEY LAUNDERING ACT

(CAP. 373)

Prevention of Money Laundering and Funding of Terrorism

(Amendment) Regulations, 2018

IN EXERCISE of the powers conferred by article 12 of the

Prevention of Money Laundering Act, the Minister for Finance, acting

on the advice of the Financial Intelligence Analysis Unit, has made the

following regulations:-

The title of these regulations is the Prevention of Money Citation.

Laundering and Funding of Terrorism (Amendment) Regulations, 2018

and these regulations shall be read and construed as one with the

Prevention of Money Laundering and Funding of Terrorism S.L. 373. 01.

Regulations, hereinafter referred to as "the principal regulations".

Sub-regulation (1) of regulation 2 of the principal Amends

regulation 2 of

regulations shall be amended as follows

the principal

regulations.

(a) paragraphs (d) and (e) of the definition "competent

authority" thereof, shall be renumbered as paragraphs (f) and (g)

respectively;

(b) immediately after paragraph (c) of the definition

"competent authority" thereof, there shall be added the following

new paragraphs

"(d) t h e

Commissioner

for

Voluntary

Organisations;

(e)

the Asset Recovery Bureau;";

(c) the definition "gaming licensee" thereof, shall be

substituted by the following

" "gaming licensee" means any person licensed in

terms of the Lotteries and Other Games Act and, or the

Gaming Authorisation Regulations to provide a

gaming service;";

(d)

the definition "gaming service" t h e r e o f , shall be

substituted by the following

" "gaming service" means making a licensable

game which is a game of chance as defined in the

Gaming Act, available for participation by players,

and, without prejudice to the preceding phrase,

"licensable game" shall have the same meaning as is

assigned to it in the Gaming Definitions Regulations,

and shall also include a game subject to a licensing

requirement in terms of the Lotteries and Other Games

Act and the subsidiary legislation existing

thereunder;";

(e) paragraphs (e) and (f) of the definition "occasional

transaction" thereof, shall be renumbered as paragraphs (g) and

(h) respectively;

(f) immediately after paragraph (d) of the definition

"occasional transaction" thereof, there shall be added the

following new paragraphs

" "(e) a transaction, independently of the

amount involved, carried out by a subject person

whose activities are those referred to in paragraphs (m)

and (n) of the definition "relevant financial business";

(f) the provision of VFA agent services to a

person or institution required to be licensed to provide

VFA services under the provisions of the Virtual

Financial Assets Act;";

(g) paragraph (l) of the definition "relevant financial

business" thereof, shall be deleted;

(h) immediately after paragraph (k) of the definition

"relevant financial business" thereof, there shall be added the

following new paragraphs

" "(l) any activity of a VFA agent carried out

by a person or institution registered or required to be

registered under the provisions of the Virtual Financial

Assets Act;

(m) VFA services carried out by a person or

institution licensed or required to be licensed under the

provisions of the Virtual Financial Assets Act;

(n) the issue of virtual financial assets for offer

to the public in or from Malta in terms of the Virtual

Financial Assets Act; and

(o) any activity under paragraphs (a) to (n)

carried out by branches established in Malta and whose

head offices are situated outside Malta"; and

(i) immediately after the definition "trust and company

service provider" thereof, there shall be added the following new

definition

" "VFA" has the same meaning as is assigned to it

in the Virtual Financial Assets Act.".

Sub-paragraph (ii) of paragraph (a) of sub-regulation (5) of Amends

regulation 5 of the principal regulations shall be substituted by the regulation

the principal

following

regulations.

"(ii) risk management measures including customer

acceptance policies, customer risk assessment procedures,

internal controls, compliance management, communications,

employee screening policies and procedures;".

In paragraph (b) of sub-regulation (2) of regulation 7 of the Amends

principal regulations, for the words "are kept up-to-date." there shall be regulation

the principal

substituted the words "are kept up-to-date:", and immediately regulations.

thereafter there shall be added the following new proviso

"Provided that in the case of subject persons providing

VFA agent services as defined in paragraph (l) of the definition

"relevant financial business", the on-going monitoring of a

business relationship shall be limited to the provisions of

paragraph (b).".

Paragraph (b) of sub-regulation (2) of regulation 16 of the Amends

regulation 16 of

principal regulations shall be substituted by the following

the principal

regulations.

"(b) disclosures between a subject person who undertakes

relevant financial business, other than a business referred to in

paragraphs (l), (m) and (n) under the definition of ‘relevant

financial business’, and another person undertaking equivalent

business, whether situated in a Member State or a third country,

which form part of the same group and apply group-wide

policies and procedures as provided for under regulation 6;".

€0.36