BENEFICIAL OWNERSHIP REGULATIONS RELATING TO TRUSTS, FOUNDATIONS AND ASSOCIATIONS AND AML/CFT REGULA

Updated: Aug 27, 2020

#BeneficialOwnership regulations relating to #trusts, #foundations and #associations together with the principal #AML/CFT regulations have been amended in #Malta.

Acting on the advice of the #MaltaFinancialServicesAuthority, the Ministry of Finance published the Trusts and #Trustees Act (Register of Beneficial Owners) (Amendment) Regulations with effect from 1st January 2020.

The main amendments are highlighted here below:

  1. The #Regulations shall now apply to all forms of express trusts.

  2. The Regulations now also extend to any trustee of a trust whose place of establishment or residence is outside the #EU, where such trustee acquires real estate in Malta, in its capacity as trustee of a trust, or enters into a business relationship in Malta.

  3. Persons with a legitimate interest may be permitted to request beneficial ownership information, subject to review by the #MFSA.

  4. Information held in the register of beneficial owners of a trust shall be available for at least 10 years after the grounds for registering the beneficial ownership information have ceased to exist.

Amendments to Foundations

The Ministry of Justice has published the Civil Code (Second Schedule) Regulations, 2020 (#FoundationsRegulations), repealing the regulations previously in force.

The main amendments are listed hereunder:

  • New definitions have been introduced on #administrators, #commercialtransactions, #directors, private foundations, transparent foundations.

  • Obligations to obtain and keep records of beneficial owners have been tightened.

  • New rules have been introduced in relation to foundations established prior to 30th June 2019 and foundations established after 1st July 2019 up to the date of the effective date of the Foundations Regulations.

  • Persons with a legitimate interest may be permitted to request beneficial ownership information, subject to review by The Registrar for Legal Persons

Amendments to Associations

The Ministry of Justice has published the Civil Code (Second Schedule) Regulations, 2020 (#AssociationsRegulations), repealing the regulations previously in force.

The main amendments are:

  • New definitions on administrators and directors.

  • Amended rules on the obligations to obtain and keep records of beneficial owners.

  • New rules applying to associations established prior to 30th June 2019 and associations established on or after 1st July 2019 up to the date of the coming into force of the Associations Regulations.

  • Persons with a legitimate interest may be permitted to request beneficial ownership information, subject to review by the Registrar for Legal Persons.

Amendments to the #PMLFTR

Acting on the advice of the #FinancialIntelligenceAnalysisUnit, the #MinisterforFinance, has issued the Prevention of Money Laundering and Funding of Terrorism (Amendment) Regulations, 2020 (the “PMLFTR Regulations”). The main amendment concerns the definition of beneficial owner and new provisions relating to casinos, gaming licenses and electronic money.


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