In 1995 the Maltese Competition Act (Chapter 379 of the Laws of Malta) came into force. This Act is based on European Legislation and has had amendments coming into force in 2004 and 2011. The Malta Competition and Consumer Affairs Authority Act (Chapter 510 of the Laws of Malta) is highly affiliated with the Competition Act since is establishes the Authority which is set up to attain and maintain a well-functioning market, keeping in mind the benefit towards consumer and economic operators.
According to the law, the Appeals Tribunal shall have recourse to judgements of the Court of justice of the European Union and other relevant statements and comments made by the European Commission. This includes interpretative notices on the relevant provisions of the Treaty on the Functioning of the European Union (TFEU) and any secondary legislation which relates to competition and also makes reference to its previous decisions.
Accordingly, local legislation cannot work in isolation from European legislation since the main aim of the Competition Act is to regulate competition and provide for fair trading in Malta. Creating a common market for competition is the main goal set out by the EC and the TFEU.
In light of the above, our team of dedicated lawyers offer advice on all aspects of competition law, particularly, two very important aspects: prohibition of agreements, decisions and concerted practices which restrict or distort competition and the abuse of a dominant position.
Anti-Money Laundering/ Combating Funding of Terrorism
The concern of money laundering and potential terrorist financing has given rise to the enactment of various rules and regulations. The regulatory framework in Malta comprises the Prevention of Money Laundering Act (‘PMLA’) and the Prevention of Money Laundering and Funding of Terrorism Regulations (‘PMLFTR’). These pieces of legislation are in alignment with European Union legislation and lay down the obligations of subject persons (i.e. persons from sectors which are prone to be used for money laundering and funding of terrorism activities).
What is Money Laundering?
Money laundering is the process of transforming the proceeds of crime (criminal property) into ostensibly legitimate money or other assets.
The main piece of legislation that addresses money laundering in Malta is the PMLA, which was enacted on 23rd September 1994 and was subject to a number of amendments thereafter.
Originally, the PMLA only applied to a limited list of predicate offences, however since 31st May 2005, with the coming into effect of Legal Notice 176 of 2005, Malta has shifted from having a restricted list of predicate offences to an ‘all crimes’ regime, meaning that ‘any criminal offence’, whenever or wherever it is carried out, may constitute the basis for the offence of money laundering.
What is Funding of Terrorism?
Funding of terrorism is the process by which terrorist organisations or individual terrorists are funded in order to be able to carry out acts of terrorism. This process is defined in the Criminal Code (Cap. 9 of the Laws of Malta) as the process by which a person receives, provides or invites another person to provide, money or other property intending it to be used, or which he has reasonable cause to suspect that it may be used, for the purposes of terrorism. Terrorism financing cares little about the source of the funds (contrary to money laundering), but it is what the funds are to be used for that defines its scope.
What AML/CFT policies and procedures are required?
Your business should establish and maintain policies and procedures relating to:
Subject persons must make sure that the records kept as well as the retention periods adhere to the obligations emanating from the Data Protection Act (Cap. 440 of the Laws of Malta), which has transposed the Directive 95/46/EC into national legislation.
How we can assist your business
The AML/CFT regime imposes significant obligations on subject persons, which will become even more cumbersome in light of the new 4th AMLD which has to be transposed until 26th June 2017.
If you would like to discuss any of the issues raised above or how the new Directive may affect your business, please do contact us. We have the knowledge and expertise to provide your business with comprehensive assistance with the regulation and other matters such as:
When Malta joined the European Union back in May of 2004, for the legal sector, this meant that all laws and regulations enacted by the European Union would have to become part and parcel of Maltese law by means of an Act enacted by the Maltese Parliament in the year 2003. This Act provides that in cases where Maltese law is in conflict with European Union Law, the latter will prevail over the former and this includes the supreme law of Malta, that is, the Maltese Constitution.
Keeping this in mind, our firm has understood the importance of EU legislation and related litigation proceedings. Thus, we take pride in providing our international based clientele with advice and representation in any EU litigation matters.
Maltese Courts are now bound to apply these laws just as any other Maltese law and are required to give the same rights and possibilities to Maltese litigants as available to any other European Union citizen. In this context, it is of utmost importance that Maltese, European and International citizens, know the regime of laws and regulations which apply to a particular business or to a particular situation within the Maltese Islands. These include:
If you need any help, please feel free to contact us. We will get back to you within 1 business day. If you’re in a hurry, call us now.
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