Enforcement Action

The Malta Financial Intelligence Analysis Unit (FIAU) issued a remediation directive to an unnamed real estate agent after an on-site compliance review revealed breaches of the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR).

The FIAU directive requires the anonymous real estate agent to provide the regulator with: a detailed plan for implementing customer risk assessment practices; a copy of the current document being used to conduct customer risk assessments; an detailed explanation of the real estate agent’s new risk assessment tool and how it is being implemented; a detailed timeline on the implementation of improved anti-money laundering (AML) and counterterrorist financing (CTF) measures; and documented recordkeeping procedures.

Additionally, the FIAU requires the real estate agent to establish and document a customer acceptance policy that is reasonably designed to detect and prevent money laundering and terrorist financing. The remediation directive also provides for a follow-up meeting in order to discuss the actions being taken to address the AML/CTF weaknesses.

The FIAU outlines that the reasons leading to the imposition of the administrative measure including the anonymous real estate agent’s lack of documentation of risk assessments. The regulator also found that upon review, the company lacked documented rationale justifying its customer risk assessments.

Other PMLFTR breaches included: insufficient procedures for establishing the source of funds used in real estate transactions; a lack of adequate AML/CTF training given to employees; and the conflicting objectives for the appointed money laundering officer.