PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       1
CHAPTER 373
PREVENTION OF MONEY LAUNDERING ACT
To make provision for the prevention and prohibition of the laundering
of money in Malta.
23rd September, 1994
ACT XIX of 1994  as amended by: Act II of 1998 ; Legal Notice 71 of
1999 ; Acts XXXI of 2001 , III of 2002 , and III and XIII of 2004; Legal
Notice 176 of 2005 ; Acts VI of 2005  and XXVIII of 2006 ; Legal Notice 425
of 2007 ; Act XXXI of 2007 ; Legal Notice 105 of 2008 ; Act VII of 2010;
Legal Notice 426 of 2012 ; and Acts XXXVIII of 2014 ,  III,  VIII of 2015 ,
XXVIII of 2017 , XLII of 2018 , VII and XXXI of 2019 and I and VIII of
2020 .
Short title. 1. The short title of this Act is the Prevention of Money
Laundering Act.
Interpretation.
Amended by:
XXXI. 2001.2;III. 2004.79;L.N. 425 of 2007;XXXI. 2007.43;VII. 2010.59;III. 2015.2;XXVIII. 2017.2.2.(1) In this Act, unless the context otherwise requires -
"criminal activity" means any activity, whenever or wherever
carried out, which, under the law of Malta or any other law,amounts to:
(a) a crime or crimes specified in Article 3 (1) ( a) of the
United Nations Convention Against Illicit Traffic inNarcotic Drugs and Psychotropic Substances adoptedon the 19th December 1988 in Vienna reproduced (inthe English language only) in the First Schedule to this
Act; or
(b) one of the offences listed in the Second Schedule to
this Act;
"EEA State" means a State which is a contracting party to the
agreement on the European Economic Area signed at Oporto on the2 May, 1992 as amended by the Protocol signed at Brussels on th e
17 March, 1993 and as may be amended by any subsequent Acts;
"European Supervisory Authority" means the European
Supervisory Authority (European Banking Authority), establishedby Regulation (EU) No. 1093/2010 of the European Parliament and
of the Council, or the European Supervisory Authority (EuropeanInsurance and Occupational Pensions Authority) established byRegulation (EU) No. 1094/2010 of the European Parliament and ofthe Council or the European Supervisory Authority (EuropeanSecurities and Markets Authority) established by Regulation (EU )
No. 1095/2010 of the European Parliament and of the Council;
Cap. 9."funding of terrorism" means the conduct described in articles
328B and 328F to 328I, both inclusive, of the Criminal Code ;
"Member State" means a Member State of the European Union
and includes an EEA State;
"Minister" means the Minister responsible for finance;"money laundering" means -
(i) the conversion or transfer of property knowing
 2        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
or suspecting that such property is derived
directly or indirectly from, or the proceeds of,criminal activity or from an act or acts ofparticipation in criminal activity, for the purposeof or purposes of concealing or disguising theorigin of the property or of assisting any personor persons involved or concerned in criminalactivity;
(ii) the concealment or disguise of the true nature,
source, location, disposition, movement, rightswith respect of, in or over, or ownership ofproperty, knowing or suspecting that suchproperty is derived directly or indirectly fromcriminal activity or from an act or acts ofparticipation in criminal activity;
(iii) the acquisition, possession or use of property
knowing or suspecting that the same was derivedor originated directly or indirectly from criminalactivity or from an act or acts of participation incriminal activity;
(iv) retention without reasonable excuse of property
knowing or suspecting that the same was derivedor originated directly or indirectly from criminalactivity or from an act or acts of participation incriminal activity; 
Cap. 9.(v) attempting any of the matters or activities
defined in the above foregoing sub-paragraphs(i), (ii), (iii) and (iv) within the meaning ofarticle 41 of the 
Criminal Code ;
(vi) acting as an accomplice within the meaning of
article 42 of the Criminal Code  in respect of any
of the matters or activities defined in the aboveforegoing sub- paragraphs (i), (ii), (iii), (iv) and(v); 
"prescribed" means prescribed by regulations made under this
Act;
"property" means property and assets of every kind, nature and
description, whether movable or  immovable, whether corporeal or
incorporeal, tangible or intangible, legal documents or instrum ents
evidencing title to, or interest in, such property or assets an d,
without derogation from the generality of the foregoing, shallinclude -
(a) any currency, whether or not the same is legal tender in
Malta, bills, securities, bonds, negotiable instrumentsor any instrument capable of being negotiableincluding one payable to bearer or endorsed payable tobearer whether expressed in euro or any other foreigncurrency;
(b) cash or currency deposits or accounts with any bank,
credit or other institution as may be prescribed whichcarries or has carried on business in Malta;
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       3
(c) cash or items of value including but not limited to
works of art or jewellery or precious metals; and
(d) land or any interest therein;
"the Unit" means the unit established by article 15. (2) ( a) A person may be convicted of a money laundering
offence under this Act even in the absence of a judicial
finding of guilt in respect of the underlying criminalactivity, the existence of which may be established onthe basis of circumstantial or other evidence without itbeing incumbent on the prosecution to prove aconviction in respect of the underlying criminalactivity and without it being necessary to establishprecisely which underlying activity.
(b) A person can be separately charged and convicted of
both a money laundering offence under this Act and ofan underlying criminal activity from which theproperty or the proceeds, in respect of which he ischarged with money laundering, derived.
(c) For the purposes of this subarticle, "underlying
criminal activity" refers to the criminal activity fromwhich the property or other proceeds, which areinvolved in a money laundering offence under this Acthave been directly or indirectly derived.
Added by:
XXXI. 2001.3.PART I
INVESTIGATION AND PROSECUTION OF OFFENCES
Offences.
Amended by:
III. 2002.166;L.N. 425 of 2007;XXXI. 2007.44;L.N. 105 of 2008;XXXVIII. 2014.98;III. 2015.4;VIII. 2015.43.3.(1) Any person committing any act of money laundering
shall be guilty of an offence and shall, on conviction, be liab le to a
fine ( multa ) not exceeding two million and five hundred thousand
euro (€2,500,000), or to imprisonment for a period not exceedin g
eighteen years, or to both such fine and imprisonment.
(2) Where an offence against the provisions of this Act is
committed by a body of persons, whether corporate orunincorporate, every person who, at the time of the commission of
the offence, was a director, manager, secretary or other simila r
officer of such body or association, or was purporting to act i n any
such capacity, shall be guilty of that offence unless he proves  that
the offence was committed without his knowledge and that heexercised all due diligence to prevent the commission of theoffence.
Direction by the 
Attorney General.(2A) ( a) Every person charged with an offence of money
laundering under this Act shall be tried in the CriminalCourt or before the Court of Magistrates (Malta) or theCourt of Magistrates (Gozo), as the Attorney Generalmay direct, and if he is found guilty shall be liable -
(i) on conviction by the Criminal Court to the
punishment of imprisonment for a term of notless than four years but not exceeding eighteenyears, or to a fine ( multa ) of not less than fifty
 4        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
thousand euro (€50,000) but not exceeding two
million and five hundred thousand euro(€2,500,000), or to both such fine andimprisonment; or
(ii) on conviction by the Court of Magistrates
(Malta) or the Court of Magistrates (Gozo) to thepunishment of imprisonment for a term of notless than twelve months but not exceeding nineyears, or to a fine ( multa ) of not less than twenty
thousand euro (€20,000) but not exceeding twohundred and fifty thousand euro (€250,000), orto both such fine and imprisonment:
Provided that:
(i) in giving a direction in accordance with this sub-
article the Attorney General shall give dueconsideration to the age of the offender, theprior conduct of the offender, the value of theproperty laundered and all the othercircumstances of the offence;
(ii) where the Attorney General has directed that the
person accused is to be tried in the CriminalCourt in accordance with this sub-article, uponthe termination of the inquiry, if the Court ofMagistrates as a Court of Criminal Inquirydecides that there are sufficient grounds forcommitting the accused for trial on indictment,the accused may, by application to be filed in theCriminal Court within seven days from theconclusion of inquiry or within seven days fromthe date on which the accused is served with thebill of indictment, demand the said court to orderthat he be tried in the Court of Magistrates andthe Criminal Court shall, after ordering theservice of the application upon the AttorneyGeneral and granting him at least seven days toreply and after having heard oral submissionsfrom the accused and the Attorney General if itconsiders this necessary, decide upon the Courtin which the accused is to be tried and theaccused shall be tried in accordance with thedecision of the Criminal Court:
Provided that an application in terms of this sub-
paragraph may only be filed once in the courseof any proceedings:
Provided further that persons who on the date of
the coming into force of this sub-paragraph areawaiting trial in the Criminal Court further to adirection given in terms of this sub-article may,notwithstanding the other provisions of this sub-article, file an application in the said court interms of this sub-paragraph within one monthfrom the said date;
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       5
(iii) where upon conviction the accused is liable to
the punishment provided in terms of sub-paragraph ( a)(i) of this sub-article and the court
competent to sentence the accused is of theopinion that when it takes into account the ageof the offender, the prior conduct of the offender,the value of the property laundered and all theother circumstances of the offence, thepunishment provided for in sub-paragraph ( a)(i)
of this sub-article would not be appropriate, itmay, giving reasons apply the punishmentprovided in sub-paragraph (ii) of this sub-article.
(b) Notwithstanding that the Attorney General has
directed in accordance with the provisions ofparagraph ( a) that a person be tried in the Criminal
Court, he may, at any time before the filing of the billof indictment or at any time after filing the bill ofindictment before the jury is empanelled, and with theconsent of the accused, direct that that person be triedbefore the Court of Magistrates, and upon suchdirection the Court of Magistrates as a court ofcriminal judicature shall become competent to try thatperson as if no previous direction had been given.
Where the Attorney General has given such new
direction after the filing of the bill of indictment, theregistrar of the Criminal Court shall cause the recordto be transmitted to the Court of Magistrates, and shallcause a copy of the Attorney General’s direction to beserved on the Commissioner of Police.
Cap. 9.(c) Notwithstanding the provisions of article 370 of the
Criminal Code  and without prejudice to the provisions
of subarticle (2), the Court of Magistrates shall becompetent to try offences of money laundering underthis Act as directed by the Attorney General inaccordance with the provisions of this sub-article.
Cap. 101.(3) In proceedings for an offence of money laundering under
this Act the provisions of article 22(1C)( b) of the Dangerous Drugs
Ordinance  shall mutatis  mutandis  apply.
Cap. 9.(4) Where it is established that an offence of money laundering
under this Act was committed by an officer of a body corporate as
is referred to in article 121D of the Criminal Code or by a person
having a power of representation or having such authority as isreferred to in that article and the offence was committed for t he
benefit, in part or in whole, of that body corporate, the said person
shall for the purposes of this Act be deemed to be vested with the
legal representation of the same body corporate which shall beliable to the punishment laid down in sub-article (1):
Provided that where legal representation no longer vests in
the said person, for purposes of this article, legal representa tion
shall vest in the person occupying the office in his stead or i n such
person as is referred to in that article.
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Cap. 9.(5) ( a) Without prejudice to the provisions of article 23 of the
Criminal Code the court shall, in addition to any
punishment to which the person convicted of anoffence of money laundering under this Act may besentenced and in addition to any penalty to which abody corporate may become liable under the provisionsof subarticle (4), order the forfeiture in favour of theGovernment of the proceeds or of such property thevalue of which corresponds to the value of suchproceeds whether such proceeds have been received bythe person found guilty or by the body corporatereferred to in the said subarticle (4) and any propertyof or in the possession or under the control of anyperson found guilty as aforesaid or of a body corporateas mentioned in this subarticle shall, unless proved tothe contrary, be deemed to be derived from the offenceof money laundering and liable to confiscation orforfeiture by the court even if in the case of immovableproperty such property has since the offender wascharged passed into the hands of third parties, and evenif the proceeds of property , movable or immovable, are
situated in any place outside Malta:
Provided that, for the purposes of this subarticle,
"proceeds" means any economic advantage and anyproperty derived from or obtained, directly orindirectly, through criminal activity and includes anyincome or other benefit derived from such property.
Forfeiture of 
proceeds.
Cap. 12.(b) Where the proceeds of the offence have been
dissipated or for any other reason whatsoever it is notpossible to identify and forfeit those proceeds or toorder the forfeiture of such property the value of whichcorresponds to the value of those proceeds the courtshall sentence the person convicted or the bodycorporate, or the person convicted and the bodycorporate in solidum , as the case may be, to the
payment of a fine ( multa ) which is the equivalent of
the amount of the proceeds of the offence. The saidfine shall be recoverable as a civil debt and for thispurpose the sentence of the court shall constitute anexecutive title for all intents and purposes of the 
Code
of Or ganization and Civil Procedure .
Forfeiture of 
property derived from criminal activity.(c) Where it is established that the value of the property of
the person found guilty of an offence of moneylaundering under this Act is disproportionate to hislawful income and the court based on specific facts isfully convinced that the property in question has beenderived from the criminal activity of that person, thatproperty shall be liable to forfeiture.
Cap. 9.(6) Without prejudice to the provisions of article 5 of the
Criminal Code , the Maltese courts shall also have jurisdiction over
any offence of money laundering under this Act in the samecircumstances as are mentioned in article 121C of the 
Criminal
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       7
Code .
Cap. 9.
Cap. 101.(7) The provisions of article 248E(4) and Title IV of Part III o f
Book Second of the Criminal Code and those of article 22(3A)( b),
(d) and (7) of the Dangerous Drugs Ordinance shall apply mutatis
mutandis  to the offence of money laundering under this Act.
Additional powers 
of investigation.
Amended by:
III. 2004.80;XXVIII. 2006.106;L.N. 425 of 2007;XXXI. 2007.45;III. 2015.5;XXVIII. 2017.23;
VIII.2020.85.4.(1) Where, upon information received, the Attorney
General has reasonable cause to suspect that a person (hereinaf ter
referred to as "the suspect") is guilty of the offence mentione d in
article 3, he may apply to the Criminal Court for an order(hereinafter referred to as an "investigation order") that a pe rson
(including a body or association of persons, whether corporate or
unincorporate) named in the order who appears to be in possessi on
of particular material or material of a particular description which
is likely to be of substantial value (whether by itself or toge ther
with other material) to the investigation of, or in connection with,
the suspect, shall produce or grant access to such material to the
person or persons indicated in the order; and the person or per sons
so indicated shall, by virtue of the investigation order, have the
power to enter any house, building or other enclosure for thepurpose of searching for such material.
(2) Where an investigation order has been made or applied for,
whosoever, knowing or suspecting that the investigation is taki ng
place, discloses that an investigation is being undertaken or m akes
any other disclosures likely to prejudice the said investigatio n shall
be guilty of an offence and shall, on conviction, be liable to a fine
(multa ) not exceeding eleven thousand and six hundred and forty-
six euro and eighty-seven cents (11,646.87) or to imprisonment not
exceeding twelve months, or to both such fine and imprisonment:
Provided that in proceedings for an offence under this
subarticle, it shall be a defence for the accused to prove that  he did
not know or suspect that the disclosure was likely to prejudice  the
investigation.
(3) An investigation order -
Cap. 9.
Cap. 12.(a) shall not confer any right to production of, access to,
or search for communications between an advocate orlegal procurator and his client, and between aclergyman and a person making a confession to him,which would in legal proceedings be protected fromdisclosure by article 642(1) of the 
Criminal Code  or by
article 588(1) of the Code of Organization and Civil
Procedure ;
(b) shall, without prejudice to the provisions of the
foregoing paragraph, have effect notwithstanding anyobligation as to secrecy or other restriction upon thedisclosure of information imposed by any law orotherwise; and
(c) may be made in relation to material in the possession
of any government department.
(4) Where the material to which an application under subarticle
 8        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
(1) relates consists of information contained in a computer, th e
investigation order shall have effect as an order to produce th e
material or give access to such material in a form in which it can be
taken away and in which it is visible and legible.
(5) Any person who, having been ordered to produce or grant
access to material as provided in subarticle (1) shall, without  lawful
excuse (the proof whereof shall lie on him) wilfully fail or re fuse to
comply with such investigation order, or who shall wilfully hin der
or obstruct any search for such material, shall be guilty of anoffence and shall, on conviction, be liable to a fine ( multa ) not
exceeding eleven thousand and six hundred and forty-six euro an d
eighty-seven cents (11,646.87) or to imprisonment not exceedingtwelve months, or to both such fine and imprisonment.
(6) Together with or separately from an application for an
investigation order, the Attorney General may, in the circumsta nces
mentioned in subarticle (1), apply to the Criminal Court for anorder (hereinafter referred to as an "attachment order") -
(a) attaching in the hands of such persons (hereinafter
referred to as "the garnishees") as are mentioned in theapplication all moneys and other movable property dueor pertaining or belonging to the suspect;
(b) requiring the garnishee to declare in writing to the
Attorney General, not later than twenty-four hours
from the time of service of the order, the nature andsource of all money and other movable property soattached; and
(c) prohibiting the suspect from transferring or otherwise
disposing of any movable or immovable property.
(6A) Where an attachment order has been made or applied for,
whosover, knowing or suspecting that the attachment order hasbeen so made or applied for, makes any disclosure likely toprejudice the effectiveness of the said order or any investigat ion
connected with it shall be guilty of an offence and shall, onconviction, be liable to a fine ( multa ) not exceeding eleven
thousand and six hundred and forty-six euro and eighty-seven ce nts
(11,646.87) or to imprisonment not exceeding twelve months, or to
both such fine and imprisonment:
Provided that in proceedings for an offence under this
subarticle, it shall be a defence for the accused to prove that  he did
not know or suspect that the disclosure was likely to prejudice  the
investigation or the effectiveness of the attachment order.
(7) Before making an investigation order or an attachment
order, the court may require to hear the Attorney General inchambers and shall not make such order -
(a) unless it concurs with the Attorney General that there
is reasonable cause as provided in subarticle (1); and
(b) in the case of an investigation order, unless the court is
satisfied that there are reasonable grounds forsuspecting that the material to which the application
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       9
relates -
(i) is likely to be of substantial value (whether by
itself or together with other material) to theinvestigation for the purpose of which theapplication is made, and
(ii) does not consist of communications referred to
in subarticle (3)( a).
Cap. 12.(8) The provisions of article 381(1)( a), (b) and (e) and of
article 382(1) of the Code of Organization and Civil Procedure
shall,  mutatis mutandis , apply to the attachment order.
Substituted by:
XXVIII. 2017.3. (9) An investigation order shall be served on the persons
referred to in sub-article (1) and an attachment order shall be  served on
the garnishee and on the suspect by an officer of the Executive  Police
or by an officer of the issuing authority or by an officer of t he Courts
or of the Asset Recovery Bureau:
Provided that such orders may also be served on the
garnishee and the persons referred to in sub-article (1), excep t for the
suspect, by electronic mail in which case the person upon whom the
order is served shall acknowledge receipt by return electronic mail by
not later than one working day from such service. In default of  receipt
of such acknowledgement the order shall be served physically by  any
of the officers referred to in this sub-article without prejudi ce to the
validity of the service made by electronic mail:
Cap. 101.Provided further that the procedure stipulated in this sub-
article shall apply, in addition to that provided in sub-articl e (9) of
article 24A of the Dangerous Drugs Ordinance, with regard to service
of investigation orders and attachment orders issued under the said
Ordinance.
(10) Any person who acts in contravention of an attachment
order shall be guilty of an offence and shall, on conviction, b e
liable to a fine ( multa ) not exceeding eleven thousand and six
hundred and forty-six euro and eighty-seven cents (11,646.87) o r to
imprisonment for a period not exceeding twelve months or to bot h
such fine and imprisonment:
Provided that where the offence consists in the payment or
delivery to any person by the garnishee of any moneys or othermovable property attached as provided in subarticle (6)( a) or in the
transfer or disposal by the suspect of any movable or immovableproperty in contravention of subarticle (6)( c), the fine shall always
be at least twice the value of the money or property in questio n:
Provided further that any act so made in contravention of
that court order shall be null and without effect at law and th e court
may, where such person is the garnishee, order the said person to
deposit in a bank to the credit of the suspect the amount of mo neys
or the value of other movable property paid or delivered incontravention of that court order.
(11) An attachment order shall, unless it is revoked earlier by
 10        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
the Attorney General by notice in writing served on the suspect  and
on the garnishee in the manner provided for in sub-article (9),  cease
to be operative on the expir ation of six (6) months from the date on
which it is made; and the court may, upon application of the
Attorney General, and where it is satisfied that sufficient gro unds
exist, extend the validity of the attachment order for another six (6)
months. The court shall not make another attachment order withrespect to that suspect unless it is satisfied that substantial ly new
information with regards to the offence mentioned in article 3 is
available:
Provided that the period of validity as established in this
sub-article shall be held in abeyance for such time as the susp ect is
away from these Islands and the Attorney General informs of thi s
fact the garnishee by notice in writing served in the mannerprovided for in sub-article (9).
(12) In the course of any investigation of an offence against
article 3, the Executive Police may request a magistrate to hea r on
oath any person who they believe may have information regardingsuch offence; and the magistrate shall forthwith hear that pers on on
oath.
Cap. 9.(13) For the purpose of hearing on oath a person as provided in
subarticle (12) the magistrate shall have the same powers as ar e by
law vested in the Court of Magistrates (Malta) or the Court ofMagistrates (Gozo) as a court of criminal inquiry as well as th e
powers mentioned in article 554 of the 
Criminal Code; provided
that such hearing shall always take place behind closed doors.
(14) It shall not be lawful for any court to issue a warrant of
prohibitory injunction to stop the execution of an investigatio n
order. 
Applicability of 
Dangerous Drugs Ordinance.
Added by:
III. 2002.166.Cap. 101.4A. The provisions of article 30B of the Dangerous Drugs
Ordinance shall apply mutatis mutandis  to proceeds within the
meaning of article 3(5).
Monitoring order.
Added by:
VII. 2010.60.4B. (1) Where, upon information received, the Attorney
General has reasonable cause to suspect that a person (hereinaf ter
referred to as "the suspect") is guilty of the offence mentione d in
article 3, he may apply to the Criminal Court for an order(hereinafter referred to as a "monitoring order") requiring a b ank to
monitor for a specified period the transactions or bankingoperations being carried out through one or more accounts in th e
name of the suspect, or through one or more accounts suspected to
have been used in the commission of the offence or which couldprovide information about the offence or the circumstances ther eof,
whether before, during or after the commission of the offence,including any such accounts in the name of legal persons. The b ank
shall, on the demand of the Attorney General, communicate to th e
person or authority indicated by the Attorney General theinformation resulting from the monitoring and, once theinformation is collated, the person or authority receiving theinformation shall transmit that information to the Attorney Gen eral.
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       11
(2) Where a monitoring order has been made or applied for,
whosoever, knowing or suspecting that the investigation is taki ng
place, discloses that an investigation is being undertaken or m akes
any other disclosures likely to prejudice the said investigatio n shall
be guilty of an offence and shall, on conviction, be liable to a fine
(multa ) not exceeding eleven thousand and six hundred and forty
six euro and eighty-seven cents (11,646.87) or to imprisonment not
exceeding twelve months, or to both such fine and imprisonment:
Provided that in proceedings for an offence under this
subarticle, it shall be a defence for the accused to prove that  he did
not know or suspect that the disclosure was likely to prejudice  the
investigation.
Freezing of 
property of person accused.
Amended by:
L.N. 425 of 2007;L.N. 426 of 2012;III. 2015.6;XXXI.2019.16.5.(1) Where a person is charged under article 3, the court
shall at the request of the prosecution make an order -
(a) attaching in the hands of third parties in general all
moneys and other movable property due or pertainingor belonging to the accused, and
(b) prohibiting the accused from transferring, pledging,
hypothecating or otherwise disposing of any movableor immovable property:
Provided that the court shall in such an order determine
what moneys may be paid to or received by the accused during th e
subsistence of such order, specifying the sources, manner and o ther
modalities of payment, including salary, wages, pension and soc ial
security benefits payable to the accused, to allow him and hisfamily a decent living in the amount, where the means permit, o f
thirteen thousand and nine hundred and seventy-six euro andtwenty-four cents (13,976.24) every year:
Provided further that the court may also -
(a) authorise the payment of debts which are due by the
accused to bona fide creditors and which werecontracted before such order was made; and
(b) on good ground authorise the accused to transfer
movable or immovable property.
(2) Such order shall -
(a)become operative and binding on all third parties
immediately it is made, and the Director of the Asset
Recovery Bureau shall cause a notice thereof to be
published without delay in the Gazette, and shall alsocause a copy thereof to be registered in the PublicRegistry in respect of immovable property; and
(b) remain in force until the final determination of the
proceedings, and in the case of a conviction until thesentence has been executed.
(3) The court may for particular circumstances vary such order,
and the provisions of the foregoin g subarticles shall apply to such
order as so varied.
(4) Every such order shall contain the name and surname of the
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accused, his profession, trade or other status, father’s name,
mother’s name and maiden surname, place of birth and place ofresidence and a legally valid identification document number, i f
any.
(5) Where any money is or becomes due to the accused from
any person while such order is in force such money shall, unles s
otherwise directed in that order, be deposited in a bank to the  credit
of the accused.
(6) When such order ceases to be in force as provided in
subarticle (2)( b) the Director of the Asset Recovery Bureau shall
cause a notice to that effect to be published in the Gazette, a nd shall
enter in the Public Registry a note of cancellation of theregistration of that order.
(7) Where the court does not proceed forthwith to make an
order as required under sub-article (1), the court shall forthw ith
make a temporary freezing order having the same effect as an or der
made under this article, which temporary order shall remain inforce until such time as the court makes the order required by the
said article.
(8) Where for any reason whatsoever the court denies a request
made by the prosecution for an order under sub-article (1), the
Attorney General may, within three working days from the date o f
the court’s decision, apply to the Criminal Court to make therequired order and the provisions of this article shall apply m utatis
mutandis to the order made by the Criminal Court under this sub -
article as if it were an order made by the court under sub-arti cle (1).
The temporary freezing order made under sub-article (7) shall
remain in force until the Criminal Court determines the applica tion.
(9) The person charged may, within three working days from
the date of the making of the order under sub-article (7), appl y to
the Criminal Court for the revocation of the order provided tha t the
order shall remain in force unless revoked by the Criminal Cour t.
Penalty for 
contravening court order.
Amended by:
L.N. 425 of 2007;
XXXI. 2007.46.6. Any person who acts in contravention of a court order
mentioned in article 5 shall be guilty of an offence and shall,  on
conviction, be liable to a fine ( multa ) not exceeding eleven
thousand and six hundred and forty-six euro and eighty-seven ce nts
(11,646.87) or to imprisonment for a period not exceeding twelv e
months, or to both such fine and imprisonment, and any act somade in contravention of such court order shall be null and wit hout
effect at law and the court may, where such person is the garni shee,
order the said person to deposit in a bank to the credit of the  person
charged the amount of moneys or the value of other movableproperty paid or delivered in contravention of that court order .
Special court 
proceedings.
Amended by:
XXXI. 2007.47;XXXVIII. 2014.99.7.(1) Where an order of forfeiture is made under article 3(5),
the person found guilty and any other person having an interestmay bring an action for a declaration that any or all of the mo vable
or immovable property so forfeited is not profits or proceeds f rom
the commission of an offence under article 3 or is otherwiseinvolved in the offence of money laundering, nor property acqui red
or obtained, directly or indirectly, by or through any such pro fits or
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       13
proceeds.
(2) Such action shall be brought not later than three months
from the date on which the sentence ordering the forfeiture sha ll
have become definite, by an application in the Civil Court, Fir st
Hall.
 (3) The applicant shall attach to the application all such
documents in support of his claim as it may be in his power toproduce and shall indicate in his application the names of all the
witnesses he intends to produce, stating in respect of each the  proof
which he intends to make.
(4) The court shall, without delay, set down the application for
hearing at an early date, which date shall in no case be later than
thirty days from the date of the filing of the application.
(5) The application and the notice of the date fixed for hearing
shall be served on the Commissioner of Police without delay, an d
the said Commissioner shall file his reply thereto within fifte en
days after the date of the service of the application.
(6) The court shall hear the application to a conclusion within
twenty working days from the date fixed for the original hearin g of
the application, and no adjournment shall be granted except eit her
with the consent of both parties  or for an exceptional reason t o be
recorded by the court, and such adjourned date shall not be lat er
than that justified by any such reason.
Cap. 12.(7) Saving the preceding provisions of this article, the
provisions of the Code of Organization and Civil Procedure
relating to proceedings before the Civil Court, First Hall, sha ll
apply in relation to any such application.
(8) Subject to sub-article (9) any decision revoking the
forfeiture of immovable property shall be deemed to transfer th e
title of such property back from the Government to the party infavour of whom it is given, and such party may obtain theregistration of such transfer in the Public Registry.
Cap. 12.(9)  Where a decision has been taken revoking the forfeiture of
any movable or immovable property under this article, andprovided that the person convicted or the body corporate, or th e
person convicted and the body corporate in solidum , as the case
may be, have not been so sentenced, the Court shall sentence th e
said persons, to the payment of a fine ( multa ) which is the
equivalent of the amount of the proceeds of the offence. The sa id
fine may be recovered as a civil debt and for this purpose thesentence of the court shall constitute an executive title for a ll
intents and purposes of the 
Code of Organization and Civil
Procedure .
Reversion of 
property ceasing to be forfeited.8. When the court allows the demand for a declaration as
provided in article 7(1) in respect of any property forfeited, such
property shall cease to be forfeited and shall revert to the ap plicant
in virtue of the judgment upon its becoming definite, and theapplicant shall thereupon be entitled to the recovery of the in come
received by the Government from such property during the period
 14        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
of its forfeiture.
Powers of 
investigation in connection with offences cognizable by courts outside Malta. 
Added by:
II. 1998.9. 
Cap. 101.9.(1) Where the Attorney General receives a request made
by the judicial or prosecuting authority of any place outside M alta
for investigations to take place in Malta in respect of a perso n
(hereinafter referred to as "the suspect") suspected by that au thority
of an act or omission which if committed in these Islands, or i n
corresponding circumstances, would constitute an offence underarticle 3, the Attorney General may apply to the Criminal Court  for
an investigation order or an attachment order or for both and t he
provisions of article 24A of the 
Dangerous Drugs Ordinance shall
mutatis  mutandis  apply to that application and to the suspect and to
any investigation or attachment order made by the court as a re sult
of that application.
(2) The words "investigation order" in subarticles (2) and (5) o f
the same article 24A shall be read and construed as including a n
investigation order made under the provisions of this article.
Cap. 101.(3) The words "attachment order" in article 24A(6A) of the
Dangerous Drugs Ordinance shall be read and construed as
including an attachment order made under the provisions of thisarticle.
Transactions or 
banking operations carried out through one or more accounts.
Added by:
VII. 2010.61.9A. Where the request referred to in the preceding article is
made for the purpose of monitoring the transactions or bankingoperations being carried out through one or more accounts of asuspect, the Attorney General may apply to the Criminal Court f or
a monitoring order and the provisions of article 4B shall applymutatis mutandis .
Freezing of 
property of person accused with offences cognizable by courts outside 
Malta. 
Added by: 
II. 1998.9. 
Cap. 101.10. (1) Where the Attorney General receives a request made
by a judicial or prosecuting authority of any place outside Mal ta for
the temporary seizure of all or any of the moneys or property,movable or immovable, of a person (hereinafter in this articlereferred to as "the accused") charged or accused in proceedingsbefore the courts of that place of an offence consisting in an act or
an omission which if committed in these Islands, or incorresponding circumstances, would constitute an offence underarticle 3, the Attorney General may apply to the Criminal Court  for
an order (hereinafter referred to as a "freezing order") having  the
same effect as an order as is referred to in article 22A(1) of the
Dangerous Drugs Ordinance, and the provisions of the said article
22A shall, subject to the provisions of subarticle (2) of this article,
apply mutatis  mutandis  to that order.
Cap. 101. (2) The provisions of article 24C(2) to (5) of the Dangerous
Drugs Ordinance shall apply to an order made under this article as
if it were an order made under the said article 24C.
Cap. 101. (3) Article 22B of the Dangerous Drugs Ordinance shall also
apply to any person who acts in contravention of a freezing ord er
under this article.
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       15
Enforcement of 
confiscation orders made by courts outside Malta following conviction for offences cognizable by those courts.
Added by:
II. 1998.9.
Amended by:
VIII. 2015.43.Cap. 101.11. (1) A confiscation order made by a court outside Malta
providing or purporting to provide for the confiscation or forf eiture
of any property of or in the possession or under the control of  any
person described in the order shall be enforceable in Malta inaccordance with the provisions of article 24D(2) to (11) of the
Dangerous Drugs Ordinance .
(2) For the purposes of this article "confiscation order"
includes any judgment, decision, declaration, or other order ma de
by a court whether of criminal or civil jurisdiction providing or
purporting to provide for the confiscation or forfeiture of pro perty
as is described in subarticle (1).
The Director of 
the Asset Recovery Bureau to conduct enquiries.
Added by:
III. 2015.7.
Amended by:
XXXI.2019.17.11A. (1) Where the court makes any order as is referred to in
article 5, it shall order the Director of the Asset Recovery Bu reau to
conduct inquiries to trace and ascertain the whereabouts of anymoneys or other property, due or pertaining to or under the con trol
of the person charged or accused or convicted, as the case may be.
(2) Whosoever is required by the Director of the Asset Recovery
Bureau to provide information for the purpose of sub-article (1 )
shall comply with the demand within thirty days from the day ofreceipt of the demand.
(3) The demand made by the Director of the Asset Recovery
Bureau and any reply there upon in terms of this article, may be
made by electronic mail.
Rules and 
regulations.
Amended by:
VI. 2005.5;L.N. 425 of 2007;III. 2015.8;XXVIII. 2017.4;
I.2020.212. (1) The Minister may, acting on the advice of the Unit, make
rules or regulations generally with a view to combating moneylaundering and funding of terrorism or for the better carrying out of the
provisions of this Act, and in particular, but without prejudic e to the
generality of the foregoing, may by such rules or regulations r equire
credit institutions, financial institutions and other undertaki ngs and
professions operating within the financial sector and other rel evant
sectors, to implement measures, procedures, systems and control s to
prevent money laundering and the funding of terrorism, includin g
identification, risk management, record-keeping, training and r eporting.
(2) The Minister may by regulations extend the provisions of
this Act in whole or in part and of any regulations made thereu nder
to categories of undertakings and to professions which engage i n
activities which, in the opinion of the Minister, are particula rly
likely to be used for money laundering purposes or funding ofterrorism.
(3) The Minister, acting on the advice of the Unit, may make
regulations to transpose, implement and give effect to theprovisions and requirements of directives, regulations and anyother legislative instruments of the European Union requiringtransposition and, or implementation, as they may be amendedfrom time to time, including any implementing measures that hav e
been or may be issued thereunder.
 (4) The Minister may, in consultation with the Minister
responsible for justice, by regulation amend, alter or add to t he list of
offences specified in the Second Schedule to this Act.
 16        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
(5) The Minister shall, acting on the advice of the committee
referred to in article 12A, designate, by order in the Gazette,  those
public functions in Malta and those held within internationalorganisations accredited in Malta, which are to be considered a s
prominent public functions for the purpose of any regulationsissued under this Act, and the list of any such functions shall  be
reviewed and updated from time to time:
Provided that any order issued in terms of this sub-article sha ll
be made available to the European Commission upon publication i n
the Gazette.
(6) The Minister may prescribe by regulations any matter
required to be prescribed by this Act.
National Co-
ordinating Committee on Combating Money Laundering and Funding of 
Terrorism.
Added by:
XXVIII. 2017.5.12A. (1) The Minister may, by regulations made under this
Act, establish a committee that shall be referred to as the Nat ional
Co-ordinating Committee on Combating Money Laundering andFunding of Terrorism.
(2) The committee established under sub-article (1) shall draw
up a national strategy and policies to combat money laundering,  the
funding of terrorism and the financing of the proliferation ofweapons of mass destruction and co-ordinate any action to be ta ken
to develop, implement and review the national strategy andpolicies, including the co-ordination of national risk assessme nts
and the actions to be taken to address any threats, vulnerabili ties
and risks identified.
(3) The committee established under sub-article (1) shall be
composed of the Permanent Secretary of the Ministry responsible  for
finance, the Permanent Secretary of the Ministry responsible fo r home
affairs, the Permanent Secretary of the Ministry responsible fo r justice,
the Governor of the Central Bank of Malta, the Commissioner forRevenue, the Chairman of the Malta Financial Services Authority , the
Chairperson of the Malta Gaming Authority, the Commissioner ofPolice, the Attorney General, the Chairman of the Unit and theChairperson of the Asset Recovery Bureau or their deputies. 
(4) The committee may, whenever it deems so necessary or
expedient, engage one or more persons, whom it considers to be in
possession of suitable expertise, to assist it in carrying out specific tasks
requiring such expertise.
(5) The Chairperson of the committee shall be the Permanent
Secretary of the Ministry responsible for finance.
(6) The Minister shall prescribe by means of regulations the
powers to be conferred on the committee and the procedures it i s to
follow for the proper carrying out of its functions. 
(7) The remuneration payable, if any, to any member of the
committee shall be determined by the Minister.
Punishments, 
penalties and other measures.Substituted by:XXVIII. 2017.6.13. (1) The Minister may make rules or regulations to
provide for criminal punishments, administrative penalties andother measures that may be imposed in respect of anycontravention, breach or failure to comply with any rules,
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       17
regulations or directives made under this Act:
Provided that:
(a)  criminal punishments so imposed shall not exceed a
fine ( multa ) of one million euro (€1,000,000) or
imprisonment for a term not exceeding five years, orboth such fine and imprisonment as set out in the rules
or regulations concerned; and
(b)  administrative penalties so imposed shall not exceed:
(i) five million euro (€5,000,000); or
(ii) twice the amount of the benefit derived from the
contravention, breach or failure to comply, wherethis can be determined; or
(iii) ten per centum  (10%) of the total annual turnover
according to the latest approved available financialstatements.
(2) The administrative penalties referred to under sub-article
(1) shall be imposed by the Unit in accordance with policies an d
procedures established by the Board of Governors referred to inarticle 18, from time to time.
(3) The Unit may, in cross-border cases, co-operate with any
foreign national or supranational body, authority or agency whi ch it
considers to have functions equivalent or analogous to thosementioned in article 26(1), to co-ordinate the imposition ofadministrative penalties or other measures.
(4) Where an administrative penalty or other measure, as
provided for in this article, is imposed in respect of a subjec t
person carrying out relevant financial business, as defined und er
regulations in force from time to time under this Act, the Unit  shall
notify the relevant European Supervisory Authority of the actio n
taken and, where applicable, the European Supervisory Authorityshall also be notified of any pending appeal and the outcomethereof.
(5) For the purposes of this article and articles 13A and 13B
the term "subject person" has the same meaning assigned to it b y
article 14 of this Act.
Appeals from 
administrative penalties.
Added by:
III. 2015.9.Substituted by:XXVIII. 2017.7.
Amended by:
I.2020.3.13A. (1) Whenever a subject person feels aggrieved by an
administrative penalty imposed by the Unit in terms of rules an d
regulations made under article 13, and that administrative pena lty
exceeds five thousand euro (€5,000), whether imposed in respect  of
one or more contraventions, the subject person may appeal suchadministrative penalty both on points of law and fact.
 18        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
Cap. 12.(2) The appeal as referred to in sub-article (1) shall lie to t he
Court of Appeal (Inferior Jurisdiction) constituted in terms ofarticle 41(9) of the 
Code of Or ganization and Civil Procedure .
Cap. 12.(3) An appeal to the Court of Appeal (Inferior Jurisdiction) in
terms of sub-article (1) shall be filed in the registry of the said
Court within twenty days from the date when the imposition of t he
administrative penalty is notified to the subject person, and, saving
the provisions of this article, such an appeal shall be regulat ed by the
applicable provisions of the  Code of Organization and Civil
Procedure relating to appeals.
(4) The Court of Appeal (Inferior Jurisdiction) shall, without
delay, set down the appeal for hearing at an early date, which date
shall in no case be later than three (3) months from the date o f the
filing of the appeal.
(5) The Court of Appeal (Inferior Jurisdiction) shall hear the
appeal which shall be decided within six (6) months from the da te fixed
for the original hearing of the appeal, and no adjournment beyo nd the
said six (6) months shall be granted except either with the con sent of the
appellant and the respondent or for an exceptional reason to be  recorded
by the court, and such adjourned date shall not be later than t hat justified
by any such reason.
(6) For the purposes of safeguarding the confidentiality of
information and documents relating to the proceedings, the appe al
before the Court of Appeal (Inferi or Jurisdiction) filed in ter ms of
this article shall be heard in camera  and saving the provisions of
article 13C the judgment shall not be published.
Recovery of 
administrative penalties.
Added by:
XXVIII. 2017.8.
Amended by:
I.2020.4.
Cap. 12.13B.  (1) An administrative penalty, served on the subject
person against whom it is imposed by means of a notice in writi ng,
which is not appealed in accordance with the provisions of arti cle 13A
and which is not paid within twenty days from the date of notif ication,
shall be recoverable as a civil debt, and the notice in writing  shall,
upon the service of a copy thereof by means of a judicial act o n the
subject person indicated in the notice, constitute an executive  title for
all effects and purposes of Title VII of Part I of Book Second of the
Code of Or ganization and Civil Procedure .
(2) Where the administrative penalty is appealed and is
subsequently confirmed in whole or in part, the administrative penalty
shall be enforceable in accordance with the procedure provided for in
sub-article (1).
Publication of 
administrative penalties.
Added by:
XXVIII. 2017.8.Substituted by:I.2020.5.13C.   (1) Any administrative penalty imposed by the Unit in
terms of rules and regulations made under article 13, and whichexceeds fifty thousand euro (€50,000), shall be subject to publ ication
on the official website of the Unit, together with any otheradministrative measure imposed by the Unit in conjunction with that
administrative penalty and the publication shall take place wit hin five
(5) working days from the date of notification of the administr ative
penalty to the subject person:
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       19
Provided further that where the administrative penalty has
been appealed in terms of article 13A, the Unit shall, without undue
delay, publish information on the appeal, and thereafter on the  status of
the appeal and the outcome thereof, including information on an y
decision of the Court of Appeal  (Inferior Jurisdiction) which a lters or
revokes in whole or in part that administrative penalty in ques tion.
(2) The Unit shall publish on an anonymous basis the following
administrative measures and penalties imposed by the Unit in te rms of
rules and regulations made under article 13:
(a) administrative penalties that do not exceed fifty
thousand euro (€50,000); and
(b) administrative measures imposed by the Unit,
except those envisaged under sub-article (1).
(3) Notwithstanding the provisions of sub-articles (1) and (2),
where the Unit considers that the publication of an administrat ive
measure or penalty may jeopardise the stability of financial ma rkets or
may jeopardise any on-going supervisory, analytical or investig ative
work, or it considers it to bedisproportionate, the Unit may, i n
accordance with policies and procedures established by the Boar d of
Governors in terms of sub-article (4), decide to delay the publ ication,
or to publish that administrativemeasure or penalty on an anony mous 
basis, or not to publish such an administrative measure or pena lty.
(4) The Board of Governors referred to in article 18 shall
establish and publish policies and procedures to further regula te the
publication of administrative measures and penalties.
PART II
FINANCIAL INTELLIGENCE ANALYSIS UNIT
Definitions.
Added by:
XXXI. 2001.4.
Amended by:
VI. 2005.5.XXVIII. 2017.9.14. In this Part, unless the context otherwise requires:
"competent authority" shall have the same meaning assigned to i t by
regulations in force from time to time under this Act or as may  be
prescribed under this Act;
"subject person" shall have the same meaning assigned to it by
regulations in force from time to time under this Act or as may  be
prescribed under this Act;
"supervisory authority" shall have the same meaning assigned to
it by regulations in force from time to time under this Act or as may
be prescribed under this Act;
"the Board" means the Board of G overnors referred to in article
18;
"the Chairman" means the Chairman of the Board appointed
under article 20;
"the Deputy Chairman" means the Deputy Chairman of the Board
 20        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
appointed under article 20;
"the Director" means the Director of the Unit appointed or
recruited under article 23.
Establishment of 
the Unit.
Added by:
XXXI. 2001.4.
Amended by:
I.2020.615. (1) There shall be a government agency, to be known as
the Financial Intelligence Analysis Unit.
(2) The Unit shall be a body corporate having a distinct legal
personality and shall be capable, subject to the provisions of this
Act, of entering into contracts, of concluding memoranda of
understanding or other agreements including with any foreignbody, authority or agency as is referred to in article 16(1)( k), of
acquiring, holding and disposing of any kind of property for th e
purposes of its functions, of suing and being sued, and of doin g all
such things and entering into all such transactions as are inci dental
or conducive to the exercise or  performance of its functions un der
this Act, including the borrowing of money.
(3) The Unit shall enter into an agency performance agreement
with the Minister which agreement shall determine the funding o f
the agency and, without prejudice to the generality of article 16(1),
any specific tasks within the scope of the functions of the Uni t
which are to be addressed and achieved by the Unit.
(4) The members of the Unit and all its employees shall abide
by any Code of ethics applicable to public officers and shall,subject to any law to the contrary, have the same obligationsthereunder:
Provided that the Unit may, with the concurrence of the
Minister, draw up service values and a Code of Ethics tosupplement any public service Code of Ethics in respect of theUnit. 
Functions of the 
Unit.
Added by:
XXXI. 2001.4.
Amended by:
VI. 2005.5;III. 2015.10;XXVIII. 2017.10;I.2020.7.16. (1) Subject to the other provisions of this Act and without
prejudice to any other power or function conferred on it by thi s Act
or by any other law, the Unit shall be responsible for the coll ection,
collation, processing, analysis and dissemination of informatio n
with a view to preventing, detecting and effectively combatingmoney laundering and funding of terrorism and without prejudiceto the generality of the aforesaid shall in particular have thefollowing functions:
(a) to receive reports of transactions or activities
suspected to involve money laundering or funding ofterrorism or property that may have derived directly orindirectly from, or constitutes the proceeds of,criminal activity made by any subject person inpursuance of any regulation made under article 12, tosupplement such reports with such additionalinformation as may be available to it or as it maydemand, to analyse the report together with suchadditional information and to draw up an analyticalreport on the result of such analysis;
(b) to send any analytical report as is referred to in
paragraph ( a) to the Commissioner of Police for
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       21
further investigation if having considered the report
received under paragraph ( a), the Unit also has
reasonable grounds to suspect that the transaction oractivity is suspicious and could involve moneylaundering or funding of terrorism or property thatmay have derived directly or indirectly from, orconstitutes the proceeds of, criminal activity;
(c) to monitor compliance by subject persons and to co-
operate and liaise with any authority in or outside Malta
having supervisory or regulatory functions to ensure
such compliance;
(d) to send to the Commissioner of Police together with
any analytical report sent in accordance withparagraph ( b) or at any time thereafter any
information, document, analysis or other material insupport of the report;
(e) to instruct any subject person to take such steps as it
may deem appropriate to facilitate any money-laundering or funding of terrorism analysis in generalor the analysis of any particular report received by theUnit under paragraph ( a);
(f) to gather information on the financial and commercial
activities in the country for analytical purposes with aview to detecting areas of activity which may bevulnerable to money laundering or funding ofterrorism;
(g) to compile statistics and records, disseminate
information, make recommendations, issue guidelinesand advice the Minister on all matters and issuesrelevant to the prevention, detection, analysis,investigation, prosecution and punishment of moneylaundering or funding of terrorism offences;
(h) to promote the training of, and to provide training for,
personnel employed with any subject person in respectof any matter, obligation or activity relevant to theprevention of money laundering or funding ofterrorism;
(i) to consult with any person, institution or organization
as may be appropriate for the purpose of dischargingany of its functions;
(j) to advise and assist persons, whether physical or legal,
to put in place and develop effective measures andprogrammes for the prevention of money launderingand funding of terrorism;
Substituted by:
XXVIII. 2017.10.(k) upon request or on its own motion and subject to such
conditions and restrictions as it may determine, tocooperate and exchange information with:
(i) any foreign body, authority or agency which it
considers to have functions equivalent or analogous
 22        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
to those mentioned in paragraphs (a) and (b)
regardless of its nature or status; 
(ii) any supervisory authority in Malta or any other
authority or body having regulatory or supervisoryfunctions outside Malta, when the Unit is of theview that such co-operation and exchange ofinformation would assist in monitoring complianceby subject persons or other persons undertakingequivalent activities outside Malta, with anti-moneylaundering and counter-funding of terrorism laws orwith other laws specific to their activities orservices, or in ensuring that the financial sector andother relevant sectors or professions are not usedfor criminal purposes, or to safeguard theirintegrity; 
(iii) any other competent authority;
(l) to report to the Commissioner of Police any activity
which it suspects involves money laundering or theunderlying criminal activity, or funding of terrorismand of which it may become aware in the course of the
discharge of any of its functions at law;
(m) to monitor compliance with any restrictions on
payments in cash which may be introduced from timeto time under this Act; and
(n) to establish, manage and administer centralised
automated mechanisms allowing for the retrieval of dataand information on any person holding or controllingpayment or bank accounts or any person making use ofsafe custody services offered by credit institutions.
(2) For the purpose of carrying out any of its functions under
this Act or other regulations issued thereunder, the Unit shall  have
the power to impose fees and charges, including fees or charges  to
cover costs incurred by Unit in engaging any expert as envisage d in
article 26A.
(3) The Unit shall at least once a year prepare a report on its
activities in general to the Minister and shall afford to the M inister
facilities for obtaining information with respect to its proper ty and
its activities in general and fu rnish him with returns, account s and
other information with respect thereto.
Liability for 
damages.
Added by:
XXXI. 2001.4.17. The Unit, its Board, officers and employees shall not be
liable in damages for anything done or omitted to be done in th e
discharge or purported discharge of any function under this Act ,
unless the act or omission is shown to have been done or omitte d to
be done, as the case may be, in bad faith.
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       23
Distribution of 
duties of the Unit.
Added by:
XXXI. 2001.4.18. (1) The Unit shall consist of a Board and a Director. 
(2) The Board shall be responsible for the policy to be adopted
by the Unit and to be executed and pursued by the Director and to
ensure that the Director carries out that policy accordingly. T he
Board shall also be responsible for advising the Minister asprovided in article 16(1)( g).
(3) The Director shall be responsible for the execution of the
policy established by the Board and for carrying out all thefunctions of the Unit not attributed by this Act to the Board i n
accordance with the policy and subject to the general supervisi on of
the Board.
(4) The Board may appoint any officer or any member of the
staff of the Unit to act as director when the Director is absen t,
unable to act or on vacation or during any vacancy in the offic e of
the Director.
Composition of the 
Board.
Added by:
XXXI. 2001.4.
Amended by:
I.2020.8.19. (1) The Board shall consist of: 
(a) five members appointed by the Minister in the manner
provided in subarticle (2);
(b) not more than two other members, as may be requested
by the Board, appointed by the Minister in the mannerprovided in subarticle (3).
(2) The Minister shall appoint the five members referred to in s ub-
article (1)(a) by selecting one member from each of five panels , each
of at least three persons, nominated respectively by the Govern or of
the Central Bank of Malta, the Chairman of the Malta FinancialServices Authority, the Chairperson of the Malta Gaming Authori ty,
the Commissioner of Police and the Commissioner for Revenue.
(3) The Minister shall appoint each additional member as may
be requested by the Board in pursuance of the provisions ofsubarticle (1)( b) from a panel of not less than three persons
nominated by the authority to be indicated by the Board withrespect to each additional member.
 (4) The members of the Board shall be appointed for a term of
three years against such remuneration as the Minister maydetermine and may be re-appointed in the manner laid down insubarticles (2) or (3), as the case may be, on the expiration o f their
term of office.
(5) The members of the Board shall discharge their duties in
their own individual judgement and shall not be subject to thedirection or control of any other person or authority.
(6) A person shall not be qualified to be appointed, or to hold
office, as a member of the Board if he:
(a) is legally incapacitated; or
(b) has been declared bankrupt or has made a composition
or scheme of arrangement with his creditors; or
 24        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
Cap. 101.
Cap. 31.(c) has been convicted of an offence against this Act or of
an offence listed in the First Schedule or in the Second
Schedule or of an offence of money laundering againstthe provisions of the 
Dangerous Drugs Ordinance  or of
the Medical and Kindred Professions Ordinance ; or
(d) is not a salaried official on the permanent staff in the
service of the official by whom he is to be or has beenrecommended for appointment; or
(e) is a salaried official of or is otherwise employed with
or in the service of a subject person or is in any othermanner professionally connected to a subject person.
(7) A member of the Board may be relieved of office by the
Minister, after consultation with  the official by whom the memb er
was recommended, on the ground of inability to perform thefunctions of his office, whether due to infirmity of mind or of  body,
or to any other cause, or of misbehaviour; and, for the purpose s of
this subarticle, repeated unjustified non-attendance of Boardmeetings may be deemed to amount to misbehaviour.
(8) A member of the Board may also resign from office by
letter addressed to the Minister.
(9) Where any vacancy occurs in the membership of the Board
for any reason other than the lapse of the term of office thatvacancy shall, for the remainder of the term of office which ha s
become vacant, be filled by another member appointed by theMinister from among a panel of not less than three personsnominated by the official who nominated the panel from amongwhom the member who vacated office had been appointed.
Chairman and 
Deputy Chairman of the Board.
Added by:
XXXI. 2001.4.20. A Chairman and Deputy Chairman shall be appointed by
the Prime Minister after consultation with the Minister from am ong
the members of the Board. The Chairman shall be the Head of theUnit and the Deputy Chairman shall have all the powers andperform all the functions of the Chairman during his absence orinability to act as Chairman or while he is on vacation or duri ng
any vacancy in the office of chairman.
Meetings of the 
Board.
Added by:
XXXI. 2001.4.21. (1) The Board shall meet within one month from its
constitution and as often as may be necessary or expedientthereafter, but in no case less frequently than ten times in ea ch year.
The meetings of the Board shall be called by the Chairman on hi s
own initiative or at the request of any two of the other member s or
at the request of the Director.
(2) The Board shall not act unless a quorum consisting of the
Chairman or Deputy Chairman and not less than two othermembers is present. 
(3) The meetings of the Board shall be chaired by the
Chairman, or in his absence, by the Deputy Chairman.
(4) The decisions of the Board shall be adopted by a simple
majority of the votes of the members present and voting and in the
event of an equality of votes the member presiding at the meeti ng
shall have and exercise a second or casting vote. 
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       25
(5) The Director shall be entitled to attend the meetings of the
Board and to take part in the discussions, but shall have no vo te.
Saving the provisions of subarti cle (2) the absence of the Dire ctor
from any meeting shall not invalidate the proceedings of themeeting.
(6) Any vacancy among the members of the Board, and any
participation therein by a person not entitled so to do, shall not
invalidate the proceedings of the Board.
(7) Subject to the provisions of this Act, the Board may
regulate its own procedure.
(8) All acts done by any person acting in good faith as a
member of the Unit shall be valid as if he were a membernotwithstanding that some defect in his appointment orqualification be afterwards discovered.
Decisions in case 
of emergency.
Added by:
XXXI. 2001.4.22. In case of emergency, decisions shall be taken by at least
two members of the Board one of whom shall be the Chairman orDeputy Chairman.
The Executive and 
other staff of the Unit..
Added by:
XXXI. 2001.4.Substituted by:I.2020.9.23. (1) The Director of the Unit shall be appointed by the
Board, according to such procedures and on such terms and condi tions
as the Board may determine, following a public call for applica tions.
(2) The other officers and staff of the Unit shall be selected b y
the Director of the Unit according to such procedures and on su ch
terms and conditions and in such numbers as the Board maydetermine.
(3) The Director and all officers and staff of the Unit shall be
persons of integrity and good conduct.
The police liaison 
officer.
Added by:
XXXI. 2001.4.
Amended by:
III. 2015.11.24. (1) The Commissioner of Police shall detail a police
officer not below the rank of Inspector to act as a liaison off icer to
liaise with the Unit.
(2) Notwithstanding anything to the contrary in any other law
the police liaison officer detailed as aforesaid shall be bound  to
keep secret and confidential any information that may come to h is
knowledge as a result of his duties as a liaison officer with t he Unit
and shall not disclose such information to any person other tha n a
member of the Unit or any of its staff in the course of the exe rcise
of his functions as a liaison officer with the Unit. 
Provided that where the Unit has submitted a report to the
Police in accordance with the provisions of this Act the Unit m ay,
without prejudice to the provisions of article 31(4), authorise  the
police liaison officer to disclose to the Police, or to any oth er
competent authority identified by the Unit as having an interes t in
the investigation of the report, any information relevant to th e said
report that may have come or may come to the knowledge of thepolice liaison officer in the course of his assignment with the  Unit.
(3) The police liaison officer shall, subject to complying with
any internal requirements of the police force, make available t o the
Unit or to any member of its staff any information at the dispo sal of
 26        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
the police or which is part of police records to the extent tha t such
information is relevant to the exercise of the functions of the  Unit.
(4) The police liaison officer shall assist the Unit in the
analysis and processing of reports received by the Unit underarticle 16(1)( a) and of information and intelligence data collected
by the Unit in the exercise of its functions and shall advise t he Unit
on investigative techniques and on all law enforcement issues. 
Legal and judicial 
representation of the Unit.
Added by:
XXXI. 2001.4.25. (1) The legal and judicial representation of the Unit shall
vest in the Chairman and in his absence in the Deputy Chairman:
Provided that the Unit may appoint any one or more of its
other members or of its officers or employees to appear in the name
and on behalf of the Unit in any judicial proceedings and in an y act,
contract, instrument or other document whatsoever.
(2) Any document purporting to be an instrument made or
issued by the Unit and to be signed by the Chairman or by theDeputy Chairman on behalf of the Unit shall be received inevidence and shall, until the contrary is proved, be deemed to be an
instrument made or issued by the Unit.
Compliance.
Added by:
XXXI. 2001.4.
Amended by:
III. 2015.12;XXVIII. 2017.11;
VII.2019.51;I.2020.10.26. (1) The Unit shall be responsible to ensure that subject
persons comply with the provisions of this Act and any regulati ons
made thereunder in so far as these are applicable to them.
(2) The Unit shall carry out its responsibilities under sub-arti cle
(1) on a risk sensitive basis and, in so doing, the Unit may:
(a) authorise any of its officers, employees or agents, or any
expert engaged under article 26A, on producing evidenceof his authority, to require any subject person to providehim forthwith with such information or documentation asmay be required in order to monitor compliance with theprovisions of this Act and any regulation madethereunder and to answer any questions as the Unit mayreasonably require for the performance of its functionsunder sub-article (1), and such officer, employee, agent or
expert may demand access to any data, information or
documentation, whether or however stored or held, thatthe Unit considers relevant to monitor compliance, andmay take copies of such data, information ordocumentation whether digital or otherwise;
(b) by notice in writing served on a subject person require
that person to produce, within the time and at the placeas may be specified in that notice, any documents asmay be so specified in the notice provided suchdocuments are reasonably required by the Unit for theperformance of its functions under this Act;
(c) carry out on-site examinations on subject persons with
the aim of monitoring compliance with the provisions ofthis Act and any regulations made thereunder;
(d) make notes, take copies or recordings, whether digital or
otherwise, of any data, information or documentationobtained or accessed by the Unit, or of any answers to
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       27
questions posed by the Unit in the exercise of its powers
under this sub-article.
Added by:
VII.2019.52.(3) For the purposes of pursuing its responsibilities under sub -
article (1) on a risk-sensitive basis the Unit shall:
(a) ensure that is has a clear understanding of the money
laundering and funding of terrorism risks to whichMalta is exposed;
(b) take any necessary action and have access to any
information or documentation that is necessary toassess and determine the money laundering andfunding of terrorism risk profile of subject persons; 
(c) ensure that the risk profile of subject persons is
reviewed on a regular basis and when there aresignificant developments in the management andoperations of subject persons, and kept up-to-date;
(d) ensure that the frequency and intensity of on-site and
off-site supervision is determined on the basis of:
(i) the risk profile of subject persons, as assessed and
determined by the Unit; and
(ii) the risks of money laundering and funding of
terrorism to which Malta is exposed; and
(e) when carrying out on-site and off-site supervision, take
into account the degree of discretion afforded to subjectpersons, under this Act, any regulations issued thereunderand procedures and guidance issued by the Unit, to adopt arisk-based approach to the implementation of their anti-money laundering and counter-funding of terrorismobligations envisaged under this Act, the said regulations,procedures and guidance.
Renumbered by:
VII.2019.51.(4) Where the data, information or documentation required,
sought to be accessed or demanded under sub-article (2) are notprovided, the Unit may require the subject person to state, in writing,
why such data, information or documentation, or access, could n ot be
provided. 
Renumbered by:
VII.2019.51.(5) Subject to the provisions of article 27, a supervisory
authority is, for the purposes of subarticle (2)( a), considered to be
an agent of the Unit.
Engagement of 
experts.
Added by:
XXVIII. 2017.12.26A.  (1)  The Unit may, whenever it deems so necessary or
expedient, engage one or more persons, whom it considers to be in
possession of suitable expertise, to assist it in carrying out specific
tasks requiring such expertise,  and, for this purpose, the Unit  may
impose such conditions as it considers necessary.
(2) Article 33 and article 34(1) shall mutatis mutandis  apply to
any person engaged by the Unit under this article.
 28        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
Co-operation with 
supervisory authorities.
Added by:
XXXI. 2001.4.
Amended by:
XXVIII. 2017.13;
I.2020.11.27.(1) Without prejudice to any restriction that the Unit may
be subject to, the Unit shall, upon request or on its own motio n, co-
operate and exchange information with any supervisory authority  in
Malta or any other authority or body having regulatory orsupervisory functions outside Malta, when the Unit is of the vi ew
that such co-operation and exchange of information would assist  in
monitoring compliance by subject persons or other personsundertaking equivalent activities outside Malta, with anti-mone y
laundering and counter-funding of terrorism laws or other lawsspecific to their activities or services, or in ensuring that t he
financial sector and other relevant sectors or professions are not
used for criminal purposes, or to safeguard their integrity:
Provided that the exchange of information shall be subject
to:
(a) a guarantee by the authority or body receiving such
information that it has adequate rules and proceduresin place governing the confidentiality and security ofinformation;
(b) the condition that information or documents
exchanged shall be used by the receiving authority orbody only for the purpose of performing itssupervisory or regulatory functions;
(c) the condition that the exchanged information shall not
be used for purposes other than those referred to inparagraph (b), nor shall it be disseminated to any otherperson, body, authority or agency without the expressprior consent of the Unit; and
(d) any other condition or restriction that the Unit may
determine, including the prior conclusion, if it deemsso necessary, of any memorandum of understanding orother agreement to regulate any such exchange ofinformation:
Provided further that where the Unit exchanges any
information with a supervisory authority in Malta, that supervi sory
authority shall provide the Unit upon request and in a timely m anner
with information on the use made of the exchanged information a nd
any outcome of any inspection or any other regulatory actionundertaken on the basis of that information.
(2) Without prejudice to the special provisions of any other
law applicable to them, the supervisory authorities shall exten d all
assistance and co-operation to the Unit in the fulfilment of it s
responsibilities under this Act.
(3) In pursuance of its responsibilities under the provisions of
article 26, the Unit may request a supervisory authority to do all or
any of the following and the supervisory authority shall notunreasonably withhold its assistance:
(a) to provide the Unit with such information of which the
supervisory authority may become aware of in thecourse of its supervisory functions and which indicates
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       29
that a subject person falling under the competence of
the supervisory authority may not be in compliancewith any requirements under this Act or anyregulations made thereunder;
(b) to carry out, on behalf of or jointly with the Unit, on-
site or off-site examinations on subject persons fallingunder the competence of the supervisory authority with
the aim of monitoring that person’s compliance with the
provisions of this Act and any regulations madethereunder and to report to the Unit accordingly.
(4) The Unit may authorise any of its officers or employees to
accompany the supervisory authority in any on-site examination as
may be required by the Unit under subarticle (3)( b) and any such
officer or employee shall be entitled, on producing, if request ed,
evidence of his authority, to enter any premises of the subjectperson on whom an examination is being undertaken.
(5) For the purposes of sub-article (1) the term supervisory
authority shall also include any authority, body or committeeresponsible for the authorisation,  licensing, registration, or regulation
of, or the granting, suspension or revocation of a warrant to s ubject
persons.
Co-operation with 
counterpart Financial Intelligence Units.
Added by:
XXVIII. 2017.14.
Amended by:
XLII.2018.14;VII.2019.52;I.2020.1227A.   (1) In carrying out its functions under article 16(1)(k)(i) ,
the Unit may exchange any information that may be relevant for the
processing or analysis of information or to investigations rega rding
financial transactions or activities related to money launderin g or
the underlying criminal activity, or funding of terrorism and t he
persons involved, regardless of the type of underlying criminalactivity, and even where the underlying criminal activity is no t known
at the time of exchange:
Provided that the Unit shall apply and make use of appropriate,
protected and secure channels, mechanisms and technologies, tocooperate and exchange information as provided in this sub-arti cle.
(2) The Unit may impose conditions and restrictions on the use
of exchanged information as it may determine, including the pri or
conclusion, if it deems so necessary, of any memorandum ofunderstanding or other agreement to regulate any such exchange of
information:
Provided that the disclosure of information shall be subject
to the condition that the information or documents disclosed sh all
not be used for purposes other than those indicated by the Unit  nor
shall they be disseminated to any other person, body, authority  or
agency, without the express prior consent of the Unit.
(3) The consent referred to in the proviso to sub-article (2)
shall be provided by the Unit promptly , regardless of the type  of
underlying criminal activity and shall not be withheld unless i n the
opinion of the Unit such disclosure:
(a) could lead to the impairment of a criminal
 30        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
investigation or; 
(b) would not be in accordance with the fundamental
principles of Maltese law.
(4) The Unit shall respond, in a timely manner, to requests for
information made by any foreign authority, body or agencyconsidered to have functions equivalent or analogous to those o f
the Unit under article 16(1)( a) and ( b):
Provided that the Unit may refuse to disclose any document
or information:
(a) if in its opinion such disclosure would not be in
accordance with fundamental principles of Malteselaw;
(b) if in its opinion the foreign authority, body or agency
does not have duties of secrecy and confidentiality thatare at least equivalent to those of the Unit or does notprovide effective measures to protect confidentialityand secrecy; or
(c) on the grounds of lack of reciprocity or repeated non-
cooperation by the foreign authority, body or agencymaking the request:
Provided further that where the request for information is
made by an authority, body or agency of a Member Stateconsidered to have functions equivalent or analogous to those o f
the Unit under article 16(1)( a) and ( b), the Unit may refuse to
disclose any document or information only if in its opinion suc h
disclosure would not be in accordance with fundamental principl es
of Maltese law.
(5) Where the Unit refuses to grant consent under sub-article
(3) or to disclose information in terms of the provisos to sub- article
(4), an explanation shall be provided.
(6) Without prejudice to the other provisions of this article,
where the Unit receives information pursuant to its function un der
article 16(1)( a) which concerns another Member State, it shall
promptly forward any relevant information to the authority, bod y or
agency within that Member State, considered to have functionsequivalent or analogous to those of the Unit under article 16(1 )(a)
and ( b).
(7) Where the Unit receives information, data or documents from a
foreign authority, body or agency considered to have functionsequivalent or analogous to those of the Unit under article 16(1 )(a) and
(b), the Unit shall comply with any restriction and condition o n the use
of such information, data or documents imposed by that foreignauthority, body or agency.
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       31
Cooperation with 
Competent 
Authorities.
Added by:
XXVIII. 2017.15.
Amended by:
I.2020.13.27B.  Without prejudice to the generality of the provisions of the
Act, where the Unit is in possession of documentation or
information which it considers to be of interest and relevance to
any competent authority in the pursuance of its functions, the Unit
may, subject to any conditions and restrictions that the Unit m ay
impose, transmit such documentation or information to the relev ant
competent authority:
Provided that the transmission of information shall be
subject to:
(a) a guarantee by the competent authority receiving such
information that it has adequate rules and proceduresin place governing the confidentiality and security ofinformation;
(b) the condition that information or documents
exchanged shall be used by the receiving competentauthority only for the purposes of pursuing itsfunctions at law;
(c) the condition that the transmitted information shall not
be used for purposes other than those referred to inparagraph (b) above, nor shall it be disseminated toany other person, body, authority or agency withoutthe express prior consent of the Unit; and
(d) any other condition or restriction that the Unit may
determine, including the prior conclusion, if it deemsso necessary, of any memorandum of understanding orother agreement to regulate any such transmission ofinformation.
Delay of execution 
of a suspicious transaction.
Added by:
XXXI. 2001.4.
Amended by:
VI. 2005.5.Substituted by:III. 2015.13.
Amended by:
XXVIII. 2017.16.28. (1) Where the Unit is informed by a subject person that a
transaction to be carried out is suspected or known to be relat ed to
money laundering or the funding of terrorism, or to involveproperty that may have derived directly or indirectly from, orconstitutes the proceeds of, criminal activity, or where, on th e basis
of information in its possession, including upon a request by aforeign body, authority or agency which is considered to havefunctions equivalent or analogous to those of the Unit, the Uni t
knows or suspects that a transaction to be carried out by a sub ject
person is related to money laundering or the funding of terrori sm,
or involves property that is derived from or constitutes the pr oceeds
of criminal activity, the Unit may, where it considers such act ion
necessary, oppose the execution of the transaction and anotification of such opposition shall be made to the subject pe rson
concerned by any written means:
Provided that where the Unit opposes the execution of the
transaction following receipt of information from the subjectperson, the notification of such opposition shall be made to th e
subject person by not later than one working day following the day
on which the information was received by the Unit and the subje ct
person shall, within such period, not carry out the transaction  in
question.
(2) The opposition by the Unit shall suspend the execution of
 32        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
the transaction for a period of one working day following the d ay of
the notification by the Unit referred to in sub-article (1), un less the
Unit shall, by any written means, authorise earlier the executi on of
the transaction.
(3) The Unit may, at its discretion, extend the period referred to
in sub-article (2) by a further working day where this is consi dered
to be necessary by the Unit and such extension shall be notifie d to
the subject person before the lapse of the period referred to i n sub-
article (2).
(4) The obligation not to execute a transaction suspended in
terms of this article shall prevail over any legal or contractu al
obligation to which a subject person may be subject.
(5) Where the Unit does not oppose the execution of the
transaction as provided in sub-article (1), the subject personconcerned may proceed with the execution of the transaction upo n
the lapse of the period referred to therein and where a notific ation
of opposition has been made to the subject person in accordancewith sub-article (1), the subject person concerned may proceed with
the execution of the transaction upon the lapse of the periodreferred to in sub-article (2) or the extended period referred to in
sub-article (3), as the case may be, unless in the meantime anattachment order has been served on the subject person.
(6) Where the Unit receives a request from a foreign body,
authority or agency referred to in sub-article (1), it shallacknowledge receipt of that request and shall subsequently noti fy
such foreign body, authority or agency of the decision whether the
execution of the transaction subject to the request has been op posed
or otherwise.
Action after 
execution of suspicious transaction which could not be delayed.
Added by:
XXXI. 2001.4.
Amended by:
VI. 2005.5;III. 2015.14.29. Where any subject person is aware or suspects that a
transaction which is to be executed may be linked to moneylaundering, or funding of terrorism or may involve property tha t
may have derived directly or indirectly from, or constitutes th e
proceeds of, criminal activity but it is unable to inform the U nit
before the transaction is executed, either because it is not po ssible
to delay executing the transaction due to its nature, or becaus e
delay in executing the transaction could prevent the prosecutio n of
the individuals involved in the suspected money laundering or t he
underlying criminal activity, or funding of terrorism, the subj ect
person shall inform the Unit immediately after executing thetransaction giving the reason why the Unit was not so informedbefore executing the transaction.
Power of the Unit 
to demand information.
Added by:
XXXI. 2001.4.
Amended by:
VI. 2005.5;III. 2015.15.30. (1) When the Unit receives a report as is referred to in
article 16(1)( a) or when from information in its possession the Unit
suspects that any subject person may have been used for anytransaction suspected to involve money laundering, funding ofterrorism or property that may have derived directly or indirec tly
from, or constitutes the proceeds of, criminal activity, the Un it may
demand from the subject person making the report or from thesubject person which is suspected of having been used for anytransaction suspected to involve money laundering, funding ofterrorism or property that may have derived directly or indirec tly
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       33
from, or constitutes the proceeds of, criminal activity, as wel l as
from any other subject person, the police, any GovernmentMinistry, department, agency or other public authority, or any other
person, physical or legal, and from any supervisory authority, any
additional information that it deems useful for the purpose ofintegrating and analysing the report or information in itspossession.
Cap. 377.
Cap. 9.(2) Notwithstanding anything contained in the Professional
Secrecy Act and any obligation of secrecy or confidentiality under
any other law the subject person or any other person, physical or
legal, and any authority or entity from whom information isdemanded by the Unit in pursuance of the provisions of subartic le
(1) shall communicate the information requested to the Unit and  for
the purposes of article 257 of the 
Criminal Code any  such
disclosure shall be deemed to be a disclosure of information to  a
public authority compelled by law:
Cap. 9.
Cap. 12.Provided that nothing in this subarticle shall imply any
obligation on the Attorney General to communicate to the Unit a ny
information which in any way relates to or is connected with orcame into his possession as a result of the exercise by him of any
powers referred to in article 91(3) of the Constitution or anyobligation on any person to communicate to the Unit anyinformation which would in legal proceedings be protected fromdisclosure by article 642(1) of the 
Criminal Code or by article
588(1) of the Code of Or ganization and Civil Procedure .
(3) Any information which the Unit demands in pursuance of
sub-article (1) shall be provided in a timely manner and within  such
time period as the Unit may direct, or as may be established byregulations made under this Act.
Power of Unit to 
demand information under article 16.
Added by:
XIII. 2004.126.
Amended by:
III. 2015.16.30A. (1) Notwithstanding anything contained in any other law,
the Unit may likewise demand form any person, authority or enti ty,
as is referred to in article 30, any information it deems relev ant and
useful for the purpose of pursuing its functions under article 16.
(2) The provisions of article 30(2) and (3) shall mutatis
mutandis apply where any information is demanded by the Unit
under this article.
Information 
demanded or 
obtained by the 
Unit. 
Added by:
I.2020.15.30B. Without prejudice to the provisions of article 27A, any
information demanded or obtained by the Unit in terms of theprovisions of this Act and regulations issued thereunder may be  used
by the Unit for the pursuance of any of its functions under art icle 16 as
it deems relevant and necessary.
 34        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
Unit may require 
the subject person to monitor transactions or banking operations.
Added by:
VII. 2010.62.
Amended by:
III. 2015.17.Renumbered by:I.2020.14.30C. (1) When the Unit receives a report as is referred to in
article 16(1)( a) or when from information in its possession the Unit
suspects that any subject person may have been used for anytransaction suspected to involve money laundering or funding ofterrorism or that property is being held by a subject person th at may
have derived directly or indirectly from, or constitutes the pr oceeds
of, criminal activity or from an act or acts of participation i n
criminal activity, the Unit may require the subject person tomonitor for a specified period the transactions or bankingoperations being carried out through one or more accounts in th e
name of any person suspected of the said offences, or through o ne
or more accounts suspected to have been used in the commission of
any of the said offences or which could provide information abo ut
the offences or the circumstances thereof, whether before, duri ng or
after the commission of the offences, including any such accoun ts
in the name of legal persons. The subject person shall communic ate
to the Unit the information resulting from the monitoring and t he
Unit may use that information for the purpose of carrying out i ts
analysis and reporting functions under this Act.
(2) Where a monitoring order has been made or applied for,
whosoever, knowing or suspecting that the analysis is taking pl ace,
discloses that an analysis is being undertaken or makes any oth er
disclosures likely to prejudice the said analysis shall be guil ty of an
offence and shall, on conviction, be liable to a fine ( multa ) not
exceeding eleven thousand and si x hundred and forty six euro an d
eighty-seven cents (11,646.87) or to imprisonment not exceedingtwelve months, or to both such fine and imprisonment:
Provided that in proceedings for an offence under this
subarticle, it shall be a defence for the accused to prove that  he did
not know or suspect that the disclosure was likely to prejudice  the
analysis.
(3) The provisions of article 30(2) shall mutatis mutandis apply
where any information is demanded by the Unit under this articl e.
Power of Unit to 
issue directives.
Added by:
III. 2015.18.Renumbered by:I.2020.14.30D. The Unit may, in order to combat money laundering and
the funding of terrorism, to ensure compliance by subject perso ns
with their obligations under this Act and any regulation madethereunder, and to prevent the financial and other systems frombeing used for criminal purposes, issue directives in writingrequiring any subject person to do or to refrain from doing any  act,
and such directives shall be complied with within the time and in
the manner stipulated therein.
Transmission of 
information to police for investigation.
Added by:
XXXI. 2001.4.
Amended by:
VI. 2005.5.Substituted by:III. 2015.19.
Amended by:
XXVIII. 2017.17.31. (1) Where, following an analysis of a report received by
the Unit under article 16(1)( a) and of any other information
relevant to that report, the Unit  is of the opinion that a reas onable
suspicion of money laundering or funding of terrorism or areasonable suspicion that property may have derived directly orindirectly from, or constitutes the proceeds of criminal activi ty
subsists, an analytical report drawn up as is referred to under  article
16(1)( a) shall be transmitted to the Police for further investigation.
(2) The provisions of sub-article (1) shall also apply mutatis
mutandis to any knowledge or suspicion of money laundering or
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       35
the underlying criminal activity, or funding of terrorism, whic h the
Unit may have gathered or formed from information in itspossession without having received any report as is referred tounder sub-article (1).
(3) Where the Unit transmits information to the Police in
pursuance of the provisions of sub-articles (1) and (2) and a s ubject
person over which another authority or agency has supervisory o r
regulatory functions is involved, the Unit shall inform the sai d
authority or agency of actions taken.
(4) Where the Unit transmits information to the Police in
pursuance of sub-articles (1) and (2) it shall thereafter trans mit to
the Police any further relevant information in respect of theknowledge or suspicion communicated to the Police as aforesaid.
(5) The Police shall, upon request and in a timely manner,
inform the Unit on the use made of information provided by theUnit under this article and on the outcome of any investigation s
carried out pursuant to the information provided.
Feedback by 
competent authorities.
Added by:
XXVIII. 2017.18.31A. (1) Where the Unit provides information to a competent
authority as provided for under this Act, that competent author ity
shall inform the Unit, upon request and in a timely manner, wit h
information on the use made of the information provided by theUnit and any outcome of any investigation or any other actionundertaken on the basis of that information.
(2) For the purposes of this article the term competent
authority shall only include the Comptroller of Customs whencarrying out duties under any regulations that may be issued or  are
in force from time to time relating to the cross border movemen t of
cash and other financial instruments.
Feedback on 
reports.
Added by:
XXXI. 2001.4.
Amended by:
VI. 2005.5;III. 2015.20.Substituted by:XXVIII. 2017.19.32. The Unit shall, at the request of the subject person or on its
own motion, give to the subject person which makes a report to the
Unit as provided for under sub-article 16(1)( a) such information as the
Unit deems appropriate to keep the subject person informed abou t the
outcome of the report submitted and any other information which  the
Unit considers to be of interest to the subject person to regul ate its
affairs and to assist it in carrying out its duties under this Act or any
regulation made thereunder.
Tipping off by the 
officials or employees of the Unit.
Added by:
XXXI. 2001.4.
Amended by:
L.N. 425 of 2007;III. 2015.21.33. Any official or employee of the Unit who, in any
circumstances other than those provided for in the proviso to a rticle
24(2), discloses to the person concerned or to a third party th at an
analysis is being carried out by the Unit, or that information has
been transmitted to the Unit by a subject person, or that the U nit
has transmitted information to the police for investigation, sh all be
guilty of an offence and liable on conviction to a fine ( multa ) not
exceeding one hundred and sixteen thousand and four hundred andsixty-eight euro and sixty-seven cents (116,468.67) or toimprisonment for a term not exceeding five years or to both suc h
fine and imprisonment. 
 36        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
Confidentiality and 
permissible disclosure of information.
Added by:
XXXI. 2001.4.
Amended by:
VI. 2005.5.XXVIII. 2017.20;I.2020.16.34. (1)The Unit, and its officers, employees and agents,
whether still in service of the Unit or not, shall treat anyinformation and documents acquired in the performance of theirduties or the exercise of their functions under this Act asconfidential, and shall not disclose any information or documen t
relating to the affairs of the Unit or of any person, which the y have
acquired in the performance of their duties or the exercise of their
functions under this Act except:
(a) when authorised to do so under any of the provisions
of this Act;
(b) for the purpose of the performance of their duties or
the exercise of their functions under this Act;
(c) to any competent court or tribunal in any appeal
proceedings instituted in accordance with theprovisions of article 13A, or in proceedings to whichthe Unit is a party for the purpose of the enforcementof any penalty imposed by the Unit under this Act; and
(d) in the form of an aggregation of data or other
statistical information, which in the opinion of theUnit does not lead to the identification of any specificperson and which does not prejudice any analysis orinvestigation.
(2) Without prejudice to the provisions of article 27A, the Unit
shall not be obliged to provide any information or disclose anydocuments, and may refuse to do so if:
(a) in its opinion such disclosure could impede an inquiry,
investigation or any other proceeding in course in Malta;or
(b) such information or document was received by the Unit
in carrying out its functions under sub-articles 16(1)(a),16(1)(b) and 16(1)(k) or providing such information ordisclosing such document may, in the opinion of the Unit,prejudice any analysis; or
(c) due to exceptional circumstances, such disclosure
would be clearly disproportionate to the legitimateinterests of Malta or of a natural or legal person; or
(d) such disclosure would not be in accordance with
fundamental principles of Maltese law:
Provided that any refusal under this subarticle shall be
clearly explained to the body or authority requesting the discl osure
of the document or information.
(3) The Unit may also disclose any information or document
referred to in sub-article (1) to any authority in or outside M alta
carrying out a criminal investigation into any act or omissioncommitted in Malta and which constitutes, or if committed outsi de
Malta would in corresponding circumstances constitute:
Cap. 101. (a) any of the offences referred to in article
22(2)(a)(1) of the  Dangerous Drugs Ordinance ; or
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       37
Cap. 31.(b) any of the offences referred to in article
120A(2)(a)(1) of the  Medical and Kindred Professions
Ordinance ; or
(c) any offence of money laundering within the
meaning of this Act; or 
(d) any offence of funding of terrorism:
Provided that when disclosing any information or document in
the circumstances referred to in this sub-article, the Unit may  also
disclose any information or document related to the underlyingcriminal activity.
(4) Notwithstanding any other provision of this Act or any othe r
law, any information or document disclosed by the Unit in terms  of
sub-article (3) shall be considered as secret and shall:
(a) be used only for the purposes of the investigation
being carried out and no other use thereof shall bemade nor shall it be disclosed or disseminated to anyother person or authority without the prior expressconsent of the Unit:
Provided such further use, disclosure or dissemination
is strictly necessary for the purpose of theinvestigation being carried out and the provisions ofthis sub-article shall also apply to such further use,disclosure or dissemination;
(b) be considered as intelligence for the purposes of
assisting the investigation being carried out, and shallnot be considered as evidence nor used as such in anyproceedings, whether judicial or otherwise, which maybe instituted as a result of any such investigation;
(c) not be provided under oath;
(d) be recorded, held and archived separately from the acts
of the investigation or any procès verbal  and shall be
sealed in such manner so as to ensure itsconfidentiality and secrecy;
(e) not form part of any published report or findings
resulting from the investigation; and
(f) under no circumstance be made public.
Revenue of the 
Unit.
Added by:
XXXI. 2001.4.
Amended by:
III. 2015.22.XXVIII. 2017.21.35. The revenue of the Unit shall consist of:
(a) fees charged by and payable to the Unit in respect of its
supervisory functions and other services rendered byit;
(b) rents, interests and profits accruing from property,
deposits and other assets of the Unit;
(c) any monies advanced to it by the Minister;
(d) any other money receivable or received by the Unit.
 38        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
Powers of the Unit.
Added by:
XXXI. 2001.4.36. (1) The Unit may:
(a) hold accounts with any bank;
(b) invest any of its liquid assets in short and medium term
first class securities as approved by the Board;
(c) acquire, purchase, lease or dispose of any movable or
immovable property required for the conduct of itsbusiness or for any purposes ancillary or incidental tothe performance of its functions under this Act.
(2) For the purpose of carrying out any of its functions under
this Act, the Unit may, with the approval in writing of the Min ister,
borrow or raise money in such manner, from such person, body orauthority, and under such terms and conditions as the Minister may
in writing approve.
Advances by the 
Government.
Added by:
XXXI. 2001.4.37. The Minister may make advances to the Unit of such sums
as the Minister may consider to be required by the Unit for car rying
out any of its functions under this Act, and may make suchadvances on such terms and conditions as the Minister may deemappropriate. Any such advances may be made by the Minister outof the Consolidated Fund, and without further appropriation oth er
than this Act, by warrant under his hand authorising the Accoun tant
General to make such advances.
Estimates and 
expenditure.
Added by:
XXXI. 2001.4.38. (1) The Director shall, not later than six weeks before the
end of each financial year, submit to the Board estimates of th e
income and expenditure of the Unit for the following financialyear:
Provided that the estimates for the first financial year of the
Unit shall be prepared and adopted within such time as the Mini ster
may by notice in writing to the Unit specify.
(2) In the preparation of such estimates the Unit shall
endeavour to ensure that the total revenues of the Unit are at least
sufficient to meet all sums properly chargeable to its Income a nd
Expenditure Account, including but without prejudice to thegenerality of that expression, depreciation.
(3) The estimates shall be made out in such form and shall
contain such information and such comparisons with previous yea rs
as the Board may direct.
(4) Before the end of each financial year the Board shall
consider and adopt, with or without amendments as the case maybe, the estimates submitted to it for the following financial y ear.
(5) If in respect of any financial year it is found that the amo unt
approved by the Board is not sufficient or a need has arisen fo r
expenditure for a purpose not provided for in the estimates, th e
Director may cause supplementary estimates to be prepared andsent forthwith to the Board for adoption and in any such case t he
provisions of this Act applicable to the estimates shall as nea r as
practicable apply to supplementary estimates.
            PREVENTION  OF  MONEY  LAUNDERING      [CAP. 373.       39
Determination and 
allocation of profits.
Added by:
XXXI. 2001.4.39. All profits realised by the Unit shall be put to a reserve
fund which shall be used for such purposes as the Unit may deem  to
be required to meet the objects of the Unit, including the repa yment
of any liabilities.
Financial year.
Added by:
XXXI. 2001.4.40. The financial year of the Unit shall begin on the first day of
January and end on the thirty-first day of December:
Provided that the first financial year shall begin at the date
of commencement of this article and shall end on the thirty-fir st
day of December of the following year.
Audit.
Added by:
XXXI. 2001.4.41. The Unit shall keep proper books of account in such
manner as the Minister may from time to time direct. Such accou nts
shall be audited by auditors appointed by the Board with theconcurrence of the Minister from among persons qualified to beappointed as auditors of a company under the law for the timebeing in force in Malta, as if the Unit were such a company, an d
shall moreover be subject to audit by the Auditor General.
Annual accounts.
Added by:
XXXI. 2001.4;
Amended by:
I.2020.17.42. (1) The Unit shall, as soon as may be but not later than
three months after the close of each financial year, transmit t o the
Minister:
(a) a copy of the annual accounts certified by the auditors;
(b) a report on the operations of the Unit during the year.
(2) The report referred to in subarticle (1) shall be laid on th e
Table of the House by the Minister not later than six weeks aft er its
receipt, or where the House is during the period not in session  not
later than the second week after the House resumes its sittings .
Exemption from 
taxes.
Added by:
XXXI. 2001.4.43. The Unit shall be exempted from any liability for the
payment of income tax and duty on documents and transfers underany law for the time being in force.
 40        CAP. 373. ]            PREVENTION  OF  MONEY  LAUNDERING  
FIRST SCHEDULE
(Article 2)
Article 3 (1) ( a) of the United Nations Convention
Against Illicit Traffic in Narcotic Drugs and Psychotropic Subs tances.
(i) The production, manufacture, extraction, preparation, offeri ng, offering for
sale, distribution, sale, delivery on any terms whatsoever, bro kerage,
dispatch, dispatch in transit, transport, importation or export ation of any
narcotic drug or any psychotropic substance contrary to the pro visions of the
1961 Convention, the 1961 Convention as amended or the 1971 Con vention;
(ii) The cultivation of opium poppy, coca bush or cannabis plant  for the purpose
of the production of narcotic drugs contrary to the provisions of the 1961
Convention and the 1961 Convention as amended;
(iii) The possession or purchase of any narcotic drug or psychot ropic substance
for the purpose of any of the activities enumerated in (i) abov e;
(iv) The manufacture, transport or distribution of equipment, ma terials or of
substances listed in Table I and Table II, knowing that they ar e to be used in
or for the illicit cultivation, production or manufacture of na rcotic drugs, or
psychotropic substances;
(v) The organization, management or financing of any of the offe nces
enumerated in (i), (ii), (iii) or (iv) above.
Any criminal offence.SECOND SCHEDULE Amended by:
L.N. 71 of 1999.Substituted by:L.N. 176 of 2005.
(Article 2)