Prevention of Money Laundering and Funding of Terrorism

L.N. 82 of 2026

PREVENTION OF MONEY LAUNDERING ACT

(CAP. 373)

Prevention of Money Laundering and Funding of Terrorism

(Amendment) Regulations, 2026

IN EXERCISE of the powers conferred by article 12 of the

Prevention of Money Laundering Act, the Minister responsible 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

Laundering and Funding of Terrorism (Amendment) Regulations,

2026 and these regulations shall be read and construed as one with the

Prevention of Money Laundering and Funding of Terrorism

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

Regulation 2 of the principal regulations shall be amended

as follows

(a)

immediately after the definition "the Act" there shall

be added the following new definition

" "anti-money laundering and counter-funding of

terrorism obligations" means the obligations imposed on

subject persons and arising from the Act, these regulations

or under any binding procedures, guidance, instructions,

directives, orders or directions issued under the Act or

these regulations;";

(b) paragraphs (f) and (g) of the definition "competent

authority" shall be substituted by following new paragraphs

"(f) the Security Service;

(g) the Sanctions Monitoring Board; and" and

immediately thereafter there shall be added the following

new paragraph

"(h) the

Internal

Audit

and

Investigations

Directorate;";

(c)

immediately after the definition "politically exposed

person" there shall be added the following new definition

" "real estate agent" means any person who is

licensed or required to be licensed as a property

broker or as a real estate agent under the Property

Market Agency Act

Provided that where two (2) or more real

estate agents or two (2) or more property brokers

are authorised in accordance with the Property

Market Agency Act to carry out their activity

through a partnership as defined under the said

Act, for the purposes of these regulations the real

estate agent shall be deemed to be the

partnership;";

(d) paragraph (g) of the definition "supervisory

authority" shall be substituted by following new paragraph

"(g) the Property Market Agency.".

Regulation 15 of the principal regulations shall be Amends

regulation 15 of

amended as follows

the principal

regulations.

(a)

in sub-regulation (3) thereof the words "to the

Financial Intelligence Analysis Unit." shall be substituted by the

words "to the Financial Intelligence Analysis Unit through such

channels and in such format as the Financial Intelligence

Analysis Unit may direct.";

(b) in sub-regulation (8) thereof the words "from when

the demand is first made:" shall be substituted by the words

"from when the request is first made, and shall reply through

such channels and in such format as the Financial Intelligence

Analysis Unit may direct:".

Regulation 21 of the principal regulations shall be Substitutes

regulation 21 of

substituted by the following new regulation

the principal

regulations.

" Administrative

(1) Any subject person who

penalties.

contravenes any of its anti-money laundering and

counter-funding of terrorism obligations shall be

liable to an administrative penalty of not less than

one thousand euro (€1,000) and not more than

forty-six thousand five hundred euro (€46,500) in

respect of every separate failure to comply with or

contravention of any such obligation.

(2)

Notwithstanding the provisions of

sub-regulation (1), a subject person shall

(a)

with

respect

to

minor

contraventions

and

where

the

circumstances so warrant, be liable to an

administrative penalty below the minimum

established by these regulations but not less

than two hundred and fifty euro (€250);

(b) with respect to serious, repeated

or systematic contraventions, be liable to an

administrative penalty as follows

(i) in the case of a subject

person carrying out a relevant activity,

an administrative penalty of not more

than one million euro (€1,000,000) or,

where the benefit derived from that

contravention can be quantified, not

more than twice the amount of the

benefit so derived; or

(ii) in the case of a subject

person carrying out relevant financial

business, an administrative penalty of

not more than five million euro

(€5,000,000) and, where such amount

is deemed not to be effective and

dissuasive in view of the serious,

systematic and repeated nature of the

contraventions, an administrative

penalty of not more than ten per

centum (10%) of the total annual

turnover according to the latest

available approved annual financial

statements

Provided that where the

subject person is a parent undertaking

or a subsidiary of a parent undertaking

which is required to prepare

consolidated accounts, the relevant

total annual turnover shall be the total

annual turnover resulting from the

latest available consolidated accounts

approved by the ultimate parent

undertaking.

(3)

An administrative penalty may be

imposed as a one-time fixed penalty or as a daily

cumulative penalty, or both, and administrative

penalties imposed on a daily cumulative basis

shall not be less than two hundred and fifty euro

(€250) and the accumulated penalty shall not

exceed the maximum stipulated in sub-regulations

(1) and (2), as may be applicable.

(4)

Administrative penalties under this

regulation shall be imposed by the Financial

Intelligence Analysis Unit, without recourse to a

court hearing but in accordance with policies and

procedures established by the Board of Governors

referred to in the Act. Such policies and

procedures shall take into account the principles

of natural justice and of a fair hearing, and ensure

that any administrative penalty imposed is

proportionate, effective and dissuasive.

(5)

Where a contravention in accordance

with sub-regulation (1) is committed by a subject

person being a body or other association of

persons, be it corporate or unincorporate, in

addition to any administrative penalty imposed on

the subject person, an administrative penalty of

not less than one thousand euro (€1,000) and not

more than two hundred and fifty thousand euro

(€250,000) may be imposed on any individual

who at the time of the contravention was

(a)

holding the position of a

director or holding similar functions and

responsibilities within such body or

association of persons or purporting to act

in any such capacity;

(b) an officer of such body or

association of persons holding a senior

executive management function;

(c)

appointed as a reporting officer

in accordance with regulation 15(1)(a); or

(d) appointed to carry out the duties

set out under regulation 5(5)(c),

and who through an act or omission, whether

intentional or due to gross negligence, including

through the lack of proper oversight of

subordinates, caused or contributed to the

commission of any such contravention.".

5. Immediately after regulation 21 of the principal

regulations, as substituted, there shall be added the following new

regulations

" Settlement

(1) In the course of determining the

agreements.

imposition of an administrative penalty on a

subject person or any other individual, the

Financial Intelligence Analysis Unit may, in its

own discretion but in accordance with the policies

and procedures referred to in article 13(2) of the

Act, propose or agree, to a request, to enter into a

settlement agreement with the subject person or

individual concerned.

(2)

The Financial Intelligence Analysis

Unit shall not enter into a settlement agreement

where

(a)

the

Financial

Intelligence

Analysis Unit believes that doing so would

not be in the public interest in accordance

with any policies and procedures as may be

established by the Board of Governors; or

(b) two (2) years have not yet

lapsed from the conclusion of any

corrective or remedial actions undertaken

by the subject person or individual

concerned as part of a prior settlement

agreement

Provided

that

the

Financial

Intelligence Analysis Unit may apply this

restriction either in general or in relation to the

different categories of actions that may be

undertaken in accordance with article 26 of the

Act but in any case it shall not enter into more

than two (2) settlement agreements with the same

subject person within a period of two (2) years

Provided further that where the

subject person forms part of a group, the said

limitation shall take into account any settlement

agreement entered into with any other subject

person within the group.

(3) A settlement agreement shall be in

writing, signed and shall be binding on the

Financial Intelligence Analysis Unit and the

subject person or individual concerned. The said

settlement agreement shall establish the terms

and conditions of the agreement and shall

include

(a)

a

description

of

the

contraventions identified by the Financial

Intelligence Analysis Unit and the

unconditional agreement therewith by the

subject person or individual concerned;

(b) a description of any corrective

or remedial actions which the Financial

Intelligence Analysis Unit may deem

necessary to restore compliance, where

applicable;

(c)

an undertaking by the subject

person or individual concerned to

implement the corrective or remedial

actions required by the Financial

Intelligence Analysis Unit, within such

time-frames and subject to such conditions

as may be set by or otherwise agreed with

the Financial Intelligence Analysis Unit;

(d) the

administrative

penalty

which the Financial Intelligence Analysis

Unit was intent on imposing on the subject

person or individual concerned, and the

amount by which the said administrative

penalty is reduced on condition that the

subject person or individual concerned

complies with the terms and conditions of

the settlement agreement;

(e)

an undertaking by the subject

person or individual concerned to pay the

reduced

administrative

penalty

in

accordance with the terms established in

the settlement agreement;

(f)

a waiver by the subject person

or individual concerned of any right to

appeal, review or to otherwise challenge

the determination and conclusions of the

Financial Intelligence Analysis Unit; and

(g) a declaration by the subject

person or individual concerned that the

amount by which the administrative penalty

is reduced shall become due and payable to

the Financial Intelligence Analysis Unit,

upon the Financial Intelligence Analysis

Unit’s determination that any corrective or

remedial actions as are referred to in

paragraph (c) have not been completed as

envisaged by the settlement agreement.

(4)

The amount of the administrative

penalty conditionally reduced in accordance with

sub-regulation (3)(d) shall be extinguished upon

determination by the Financial Intelligence

Analysis Unit that any corrective or remedial

actions required by the settlement agreement have

been carried out.

(5)

In the event that a settlement

agreement is not entered into due to lack of

interest or lack of cooperation by the subject

person or individual concerned or within such

time as may be set out by the Financial

Intelligence Analysis Unit, the Financial

Intelligence Analysis Unit shall proceed with the

imposition of the administrative penalty in the full

amount it was intent on imposing and the

imposition of such other measures as it is

empowered by law to impose and as it may deem

necessary.

(6)

A settlement agreement shall be

considered to be completed when the said

agreement is signed by both parties and the

subject person or individual concerned has paid

the full amount of the reduced administrative

penalty in accordance with the terms and

conditions established in the agreement, failing

which, the Financial Intelligence Analysis Unit

shall proceed with the imposition of the

administrative penalty in the full amount it was

intent on imposing and the imposition of such

other measures as it is empowered by law to

impose and as it may deem necessary.

(7)

In the event that, following the

conclusion of a settlement agreement, the

Financial Intelligence Analysis Unit determines

that the subject person or the individual concerned

failed, without reasonable justification, to comply

with the terms of the settlement agreement or with

any corrective or remedial action as required by

the agreement

(a)

the subject person or the

individual concerned shall, following a

notice in writing from the Financial

Intelligence Analysis Unit, forfeit any

concession or other benefit arising from

the agreement, and the amount by which

the administrative penalty had been

reduced shall become due and payable to

the Financial Intelligence Analysis Unit;

(b) the

Financial

Intelligence

Analysis Unit, may by notice in writing

served on the subject person or on the

person concerned, take such other measures

as the Financial Intelligence Analysis Unit

is empowered by law to take, and as may be

deemed necessary in the circumstances,

including issuing directives in writing

requiring the subject person or any other

person concerned to do or to refrain from

doing any act, including such prohibitions,

restrictions and limitations under such

conditions as may be specified in the

directives; and

(c) the

Financial

Intelligence

Analysis Unit may institute an action

before the Civil Court, First Hall, to

recover from the subject person or

individual concerned the amount by which

the administrative penalty had been

reduced in terms of the settlement

agreement, and to enforce the completion

of the corrective or remedial actions that

the Financial Intelligence Analysis Unit

had imposed through the settlement

agreement.

(8)

Any such action shall follow the

procedure established in articles 167 to 170 of the

Code of Organization and Civil Procedure

Provided that where leave to defend

the action is granted in accordance with article

170 of the Code of Organization and Civil

Procedure or an appeal is otherwise filed from any

decision of the Civil Court, First Hall, the time-

frames established in article 13A(3) to (5) of the

Act shall apply mutatis mutandis

Provided further that articles 13A(6)

and 13C of the Act shall also apply mutatis

mutandis to any action referred to under this sub-

regulation or an appeal therefrom.

(9)

Where the Financial Intelligence

Analysis Unit files an action as referred to in sub-

regulation (7)(d), it may also request the court to

impose on the subject person or individual

concerned additional penalties which shall not

exceed one thousand euro (€1,000) for every day

until the corrective or remedial actions are

completed.

(1) Where

the

Financial

Additional

administrative

Intelligence Analysis Unit determines that a

measures.

subject person has contravened its anti-money

laundering and counter-funding of terrorism

obligations, the Financial Intelligence Analysis

Unit shall have the power to impose, in

conjunction with or instead of an administrative

penalty, one or more of the following

administrative measures

(a)

a reprimand in writing to

admonish the subject person;

(b) an order requiring a subject

person to desist from operating in a non-

compliant manner;

(c)

an order requiring a subject

person to comply with its anti-money

laundering or funding of terrorism

obligations, including taking such actions

as may be necessary to remedy and, or

correct the situation within such time-

frames and subject to such conditions as

may be determined by the Financial

Intelligence Analysis Unit;

(d) an order requiring a subject

person to cease from carrying out

transactions or operations within the

context of a business relationship, or to

offer any particular product or service, be it

temporarily or perpetually

Provided that such administrative

measures shall be without prejudice to the powers

of the Financial Intelligence Analysis Unit under

article 30D of the Act.

(2)

The provisions of regulation 21(4)

shall apply mutatis mutandis to the imposition of

administrative measures under this regulation.

(1) When the Financial Intelligence

Communication

of

administrative Analysis Unit exercises its powers under

penalties and

regulations 21 to 23 it

measures to

supervisory

authorities.

(a)

shall inform in a timely manner

the relevant supervisory authority or any

other authority, body or committee

responsible for the authorisation, licensing,

registration or regulation of, or the granting

of a warrant to the subject person or

individual concerned and shall provide all

relevant information on the contraventions

committed as it deems necessary;

(b) may also recommend to any

relevant supervisory authority or any other

authority, body or committee responsible

for the authorisation, licensing, registration

or regulation of, or the granting of a

warrant to, the subject person or individual

concerned, the taking of regulatory or other

measures, pertaining to the said authority,

body or committee under applicable law,

against such subject person or individual

concerned as referred to in regulation 21(5)

including

(i) the restriction, limitation,

suspension,

withdrawal

or

cancellation of any such licence,

registration, warrant or any other form

of authorisation allowing the subject

person to carry out one or more

specific activities; and, or

(ii) the

suspension

or

preclusion of any individual as is

referred to in regulation 21(5) from

exercising the functions in respect of

which he is authorised within that

subject person or any other subject

person, as it may deem appropriate in

the circumstances of the case

Provided that the Financial

Intelligence Analysis Unit may also make a

recommendation instead of imposing an

administrative penalty or measure.

(2)

The provisions of these regulations

shall be without prejudice to the powers of a

supervisory authority or any other authority, body

or committee responsible for the authorisation,

licensing, registration, regulation or the granting

of a warrant to a subject person, to take any action

or regulatory measure available to it under

applicable law as it may deem appropriate in the

circumstances of the case.

6. (1) The Financial Intelligence Analysis Unit may, for a

period of six (6) months from the coming into force of these

regulations, accede or otherwise to a request for an out of court

settlement with respect to an appeal from an administrative penalty,

received from subject persons who, on the day of the coming into

force of these regulations

(a)

have an appeal pending against a decision of the

Financial Intelligence Analysis Unit imposing an administrative

penalty or notifies the Financial Intelligence Analysis Unit of

having filed such an appeal; and

(b) would have otherwise been eligible to enter into a

settlement agreement as provided for in regulation 22 of the

principal regulations had this been possible at the time that the

administrative penalty appealed from was imposed.

(2) The conclusion of an out-of-court settlement shall be

conditional on the subject person entering into a written agreement

with the Financial Intelligence Analysis Unit providing for

(a)

the unconditional acceptance and agreement by the

subject person with the determination and conclusion of the

Financial Intelligence Analysis Unit in relation to the

contraventions that had been identified;

(b) the acceptance of the administrative penalty as

reduced by the Financial Intelligence Analysis Unit, which

reduction may not be more than fifty per centum (50%) of the

penalty’s original amount, and its payment in accordance with

the terms and conditions of the agreement;

(c)

the waiver of any judicial proceedings against the

Financial Intelligence Analysis Unit and a declaration that the

subject person shall not seek to otherwise further impugn the

decision of the Financial Intelligence Analysis Unit; and

(d) the acceptance and immediate implementation of

any directives, requirements and any other directions to take

corrective or remedial actions that had been given by the

Financial Intelligence Analysis Unit and that the subject person

may not yet have implemented.

(3) The provisions of regulation 24 of the principal regulations

shall apply mutatis mutandis whenever an out of court settlement is

concluded in accordance with this regulation.

€1.17