FIAU Malta Revises Implementing Procedures Part I on Beneficial Ownership and Employee Screening
Summary
The Financial Intelligence Analysis Unit (FIAU) Malta issued a revised version of Implementing Procedures Part I on April 27, 2026, making substantive amendments to beneficial owner definitions and employee screening obligations. The revised Section 4.2.2 removes the prior exception allowing legal persons (such as trustees or protectors that are not natural persons) to be treated as beneficial owners in trust contexts, requiring subject persons to identify the natural person(s) who ultimately qualify. Separately, the mandatory police conduct certificate requirement for employee screening under Section 7.5 has been replaced with a risk-based assessment obligation, though subject persons must still maintain written records of screening processes and outcomes.
About this source
GovPing monitors FIAU Malta News for new banking & finance regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 15 changes logged to date.
What changed
The FIAU Malta revised Implementing Procedures Part I to amend Section 4.2.2 on beneficial owner definitions, removing the exception that permitted subject persons to treat a legal person (such as a non-natural-person trustee or protector) as the beneficial owner in trust and similar legal arrangement contexts. Subject persons must now look beyond any legal person or legal arrangement to identify the natural person(s) who qualify as beneficial owners, consistent with Section 4.3.2.5(iii).
Separately, Section 7.5 no longer mandates obtaining and retaining police conduct certificates as part of employee screening. Subject persons must instead periodically assess whether employees involved in relevant financial business are of good repute, honesty, and integrity, using a risk-based approach to determine appropriate screening measures. While alternative screening methods are permitted, subject persons are obligated to retain written records of the screening process, including how the assessment was carried out, by whom, and the conclusion reached. Sections 9.2 and 9.3.6 have been updated to reflect these changes and align with data protection principles.
Archived snapshot
Apr 27, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Amendments to the Implementing Procedures Part I
April 27, 2026
The Financial Intelligence Analysis Unit (FIAU) is issuing a revised version of the Implementing Procedures Part I (IPs Part I).
The main changes being introduced are as follows:
Amendments to the Definition of Beneficial Owner (Section 4.2.2)
The amendments to Section 4.2.2 concern the definition of beneficial owner, specifically footnote 42 to the sentence stating that “the beneficial owner, where there is one, must always be a natural person.”
Previous versions of the IPs provided for an exception in the context of trusts and similar legal arrangements, whereby if the settlor, protector and/or trustee was not a natural person, the subject person could limit itself to considering that legal person as the beneficial owner. This exception has now been removed to ensure consistency with the definition and requirements set out in Section 4.3.2.5(iii).
Accordingly, subject persons are required to look beyond any legal person or legal arrangement and determine the natural person/s who ultimately qualify as beneficial owner/s.
Amendments to Employee Screening and Record-Keeping Obligations (Sections 7.5, 9.2 and 9.3.6)
The revised IPs Part I introduce amendments to the obligations relating to employee screening and the corresponding record-keeping requirements.
Under earlier versions of the IPs Part I, Section 7.5 of the IPs Part I required subject persons to obtain and retain a copy of a police conduct certificate of their employees as part of the assessment of their conduct and integrity. This requirement applied to those officers and employees who handled relevant activity or relevant financial business, namely employees involved in the delivery of services and products that attract AML/CFT obligations, or those responsible for their oversight and direction.
Section 9.3.6 of the IPs Part I obliged subject persons to retain employees’ police conduct certificates for up to five years following termination of the employment relationship or after the employee was no longer entrusted with carrying out relevant financial business or relevant activity on behalf of the subject person.
The revised provisions now oblige subject persons to periodically assess, both upon recruitment and on an ongoing basis, whether employees are of good repute, honesty and integrity. A risk-based approach must be applied in determining the appropriate screening measures, including whether requesting and reviewing a police conduct certificate is necessary and proportionate in the circumstances.
Therefore, the IPs Part I no longer make it mandatory to obtain and retain police conduct certificates as part of the employee screening program. Subject persons may therefore adopt alternative employee screening measures instead of requesting employees’ police conduct certificates. However, subject persons are obliged to retain a written record of the screening process undertaken and its outcome, including how the assessment was carried out, by whom it was conducted, and the conclusion reached regarding the employee’s integrity.
Minor consequential amendments have also been made to Sections 9.2 and 9.3.6 to ensure that the record-keeping obligations refer to the retention of the written screening record and to clarify the applicable retention period. These amendments ensure that the IPs Part I are aligned with data protection principles.
The revised version of the IPs Part I may be accessed by clicking the button below. Any queries in relation to the above should be addressed to [email protected].
Download the Document Publication
Related Articles
Publication June 18, 2025 ##### The FIAU Malta Publishes Corrective Actions Paper Read More CASPAR cbar FIAU goAML Publication December 03, 2024 ##### New FIAU Publication on how to get started as a Subject Person Read More More Related Articles
More News
Amendments to the Implementing Procedures Part I
Appointment of Deputy Directors
Latest Updates from AMLA
Named provisions
Related changes
Get daily alerts for FIAU Malta News
Daily digest delivered to your inbox.
Free. Unsubscribe anytime.
About this page
Every important government, regulator, and court update from around the world. One place. Real-time. Free. Our mission
Source document text, dates, docket IDs, and authority are extracted directly from FIAU.
The summary, classification, recommended actions, deadlines, and penalty information are AI-generated from the original text and may contain errors. Always verify against the source document.
Classification
Who this affects
Taxonomy
Browse Categories
Get alerts for this source
We'll email you when FIAU Malta News publishes new changes.
Subscribed!
Optional. Filters your digest to exactly the updates that matter to you.