The Financial Intelligence Analysis Unit (“FIAU”) has issued amendments to the Implementing Procedures Part I, introducing important clarifications in relation to employee screening and record-keeping obligations, as well as the definition of beneficial owner.
One of the notable amendments concerns the obligations applicable to employee screening measures. The revised procedures place greater emphasis on the need for subject persons to implement adequate screening procedures not only at recruitment stage but also on an ongoing basis, particularly for employees in positions relevant to Anti-Money Laundering and Countering the Financing of Terrorism (“AML/CFT”) compliance. This reinforces the importance of maintaining robust internal controls to ensure that staff members remain fit and proper throughout the course of their employment.
The FIAU has also clarified expectations surrounding record-keeping obligations, requiring subject persons to retain adequate records evidencing the employee screening measures carried out. These records must be sufficiently detailed to demonstrate compliance with AML/CFT requirements and should be readily available for supervisory review where necessary.
In addition, the FIAU has revised the guidance relating to the definition of “beneficial owner” under Section 4.2.2 of the Implementing Procedures Part 1. The amendments provide further clarification on the interpretation of beneficial ownership, particularly in instances where ownership or control structures are layered or involve indirect holdings. This is intended to assist subject persons in identifying the natural persons who ultimately own or control a customer and to ensure a more consistent application of beneficial ownership requirements.
These amendments underline the FIAU’s continued focus on strengthening governance and transparency within Malta’s AML/CFT framework. Subject persons should assess whether their employee screening procedures, record-retention practices, and beneficial ownership identification processes require updating to align with the updated guidance.
The revised version of the Implementing Procedures Part I may be accessed through the FIAU’s official website.
