THE NEW EU AML/CFT LEGISLATIVE PACKAGE

In April 2024, the FIAU organised a series of information sessions on the new EU AML Legislative Package. During these sessions, subject persons were provided with insights into the impacts of the proposed changes to these legislations, and a number of topics were covered by industry professionals. Here’s a quick breakdown of what was discussed.

Senior Legal Officer for Legal & International Relations Simone Parnis gave a detailed overview of the stronger EU rules that have been established to fight financial crime. Ms Parnis outlined rules which are applicable to the private sector, and those which apply to the competent authorities. She also gave an oversight of EU AML/CFT architecture, and discussed the traceability of crypto-asset transfers. Ms Parnis then gave a detailed timeline of the development of the legislative package, as well as the intended plan to implement the proposed changes. She finally highlighted Malta’s interventions within the process, including FIAU representatives and other Maltese authorities, as well as any Malta-proposed amendments to the draft text.

Ms Clara Galdies from the Legal Affairs Section then presented the AMLA with regards to its better coordination and support at EU level. She gave further detail on the governance structure of AMLA, and helped to identify the extent of its direct supervisory powers. She also further explained AMLA’s indirect supervision over the financial sector, and the changes its role will bring about at national and EU level. Ms Galdies also delved into the implementation of technical standards, joint supervisory teams, and the prescribed process when there is an indication of breaches. 

The manager for Legal & International Relations, Chiara Zappala’, in collaboration with Head of Legal Affairs Jonathan Phyall, explored the EU AML Single Rulebook, and what to expect from it. They delved into the main scope of the revised AML directive, such as setting out the tasks and responsibilities of FIUs and supervisory authorities, regulating cooperation between the competent authorities covered by the AMLD with others, and regulating the set-up and access to beneficial ownership, bank accounts and real estate registers. They also looked into the suspension powers of FIUs, and the new and numerous obliged entities pertaining to the new changes. Measures regarding applicants for residence by investment schemes were also covered, including the obtaining of additional information on the customer and the BO(s), as well as information on the source of funds and source of wealth. 

EDD Measures pertaining to high-net worth individuals were also outlined by Zappala’ and Phyall, including the handling of assets of over €5,000,000 through bespoke services. They also discussed enhanced measures to prevent and manage conflicts of interest between customers and senior management/employees of the obliged entity that exercise their compliance function. Other notable topics were limits to large cash payments, threshold-based reporting, and partnerships for information sharing. Finally, the sessions were rounded up with the subject of beneficial ownership, with regards to any natural person who ultimately owns or controls a legal entity or any express trust, and the beneficial ownership of corporate and other legal entities.