Cash Control Regulations In Malta 2020 – Finance and Banking


To print this article, all you need is to be registered or login on Mondaq.com.

In the execution of the powers communicated through article 7 of
the External Transactions Act, the Minister for Finance and Financial Services has introduced certain new
regulations – Legal Notice 285 of 2020.

To begin with, as of recently, anyone entering, leaving
or transiting through Malta
whilst carrying cash amounting
to €10,000 or more, is
obliged to declare such sum to the Commissioner for Revenue.
Moreover, such obligation to declare the abovementioned can be
disregarded by completing the relevant form which is to be
delivered to the Commissioner for Revenue (CFR) when entering,
leaving or transiting through Malta.

In addition, the CFR shall record and
detain any carried/unaccompanied cash when there
are indications that said amount of cash is related to any criminal
activity.

During the period of detention of cash, the
Commissioner shall inform the competent authorities about the cash
deposited and give them information about the person carrying it,
and they shall determine whether any criminal offence has been
committed, is being committed or is about to be committed by means
of that cash under any law excluding these regulations and if so,
criminal proceedings shall commence within the period of detention
of the cash.

As soon as a decision is taken that the cash
will be detained because criminal activity has been detected, the
person shall be notified and the reason for the
detention of the cash shall be given.

The CFR shall compile and maintain a database
containing all the details of the declarations and breaches made
according to these regulations. This compilation shall be forwarded
to the Financial Intelligence Analysis Unit (FIAU).

The Legal Notice points out very clearly the fact that anyone
who fails to comply with these regulations or, anyone making false
declarations made for the purposes of these regulations,
shall be guilty of an offence.

Moreover, if the carried amount amounts to more
than
€10,000 but not more than
€30,000
, the CFR may enter into an agreement with the
individual involved and impose a penalty of 50% (or equivalent) of
the sum carried in excess of the €10,000. This, excluding
another penalty of €25, in lieu of proceedings in court.

In the absence of such agreement, the
Commissioner shall detain the amount in excess of €10,000, or
the whole amount when the cash is indivisible and deposit it in the
Depository and the person concerned shall, on conviction, be liable
to a fine equivalent to 55% of the sum carried in excess of
€10,000 together with another fine of €50. This is also
the procedure carried out in the case where the sum carried by the
individual exceeds €30,000.

When the abovementioned carried sum is equivalent to
precisely €10,000, and an agreement as
discussed above, takes place, then a penalty of €25 shall be
issued. In the case were there is a conviction, the penalty shall
be that of €50.

This legal notice shall supersede by immediate
effect the old regulations concerning cash control i.e. Subsidiary
Legislation 233.07 – Cash Control Regulations –
15th June, 2007.

Originally published July 13, 2020

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Finance and Banking from Malta

Cayman Islands Funds Update: Q2 2020

Ogier

This briefing provides a summary of a number of recent changes to laws and regulations which have been enacted in the Cayman Islands over the last quarter which impact, or will impact,…



Source link

Add a Comment