by , on Jun 30, 2021 02:38:55 PM

The Financial Intelligence Analysis Unit (FIAU) has published a consultation document on the Proposed Amendments to the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR). It is being done in order to transpose the provisions of Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 (“5th AMLD”).

The main changes being proposed are the following:

1. Introduction of new subject persons: The following non-financial businesses will be included within the definition of ‘relevant activity’, thus subject to AML/CFT obligations:

• Persons trading in or acting as intermediaries in the sale of works of art where the transactions amount to €10,000 or more;
• Free ports storing works of art worth €10,000 or more;
• Persons providing assistance or advice on tax matters; and
•  Real estate agents involved in the letting of immovable property where the monthly rent is €5,000 or more.

In view of the above, the definition of ‘occasional transaction’ shall be amended.

2. Amendment to the definition of ‘politically exposed person’ which will now provide an exhaustive list instead of a suggestive list of examples of prominent public functions. The revised definition will cover both local and foreign politically exposed persons.

3. Enhanced due diligence measures are applicable to dealings with non-reputable jurisdictions with regards to both occasional transactions and business relationships.

4. Introduction of a new Regulation for customer due diligence (CDD) exemptions for electronic money. The exemption criteria will be stricter whereby the limit of anonymous prepaid instruments will be lowered from €250 to €150. However, the FIAU will still have the authority to exempt issuers of prepaid instruments from carrying out CDD. Acquirers will be able to accept payments through anonymous prepaid instruments in other countries if such instruments comply with the Regulations.

5. Changes in CDD including: 

• A requirement on subject persons to obtain proof of registration of beneficial ownership information,
• A prohibition from keeping anonymous safe deposit boxes or safe deposit boxes in fictitious names, and
• The application of CDD measures on all existing customers on whom CDD is required by law, not merely on a risk-based approach.

Subject persons may submit their feedback to their representatives on the Joint Committee for the Prevention of Money Laundering and the Funding of Terrorism or the FIAU.

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