Financial Services And Fintech Update

Malta Financial Services Authority (MFSA) Updates

1. MFSA Guidance Paper on Money Laundering Reporting Officer

The MFSA has issued a Guidance Paper on the role of the MLRO within entities which are Subject Persons operating in the regulated financial services sector. The Guidance Paper focused on the role played by the MLRO and on its obligations not just with regards to the entity with whom the MLRO is engaged but also on the MLRO's responsibility towards protecting the integrity of the financial system.

The Guidance Paper states that the MLRO is the responsible personnel within the financial entity, being a subject person, who must make the informed decision as to whether the entity is being used to launder the proceeds of criminal activity or to support terrorism. In conjunction with this responsibility, the Guidance Paper also reminds its reader that the MLRO should receive internal reports and where grounds are found, submit Suspicious Transaction Reports