AMLA finalises key AML rules: Maltese firms face tighter due diligence, group compliance

The EU's anti-money laundering authority has finalised a set of regulatory technical standards that will tighten compliance requirements for financial and non-financial firms across the Union, including Malta.

The Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) published final reports containing three sets of standards. The first defines how obliged entities should distinguish between business relationships and occasional transactions, and how linked transactions are identified to ensure consistent customer due diligence thresholds.

The second standard clarifies the customer due diligence information that must be collected. It includes proportionate measures for lower-risk situations, non-face-to-face verification, electronic identification, and screening of politically exposed persons, their family members and close associates.

The third standard establishes group-wide minimum requirements for AML/CFT arrangements. These cover governance, risk management, internal controls, and secure information sharing for subsidiaries and branches in third countries.

AMLA also finalised a separate standard on cooperation between home and host supervisors of cross-border groups. It sets a framework for information exchange, cross-border inquiries, and coordinated supervision in both financial and non-financial sectors.

For Maltese firms, these standards mean a more prescriptive compliance environment. The requirement to apply consistent due diligence thresholds across the EU will affect how banks, payment institutions, and other obliged entities handle transactions. The group-wide rules will particularly impact Maltese financial groups with operations in third countries, as well as international firms with Maltese subsidiaries.

The draft standards have been submitted to the European Commission. Once adopted and published in the Official Journal of the EU, they will apply six months after entry into force. For football agents and professional football clubs, the application date is 10 July 2029.

Malta's Financial Intelligence Analysis Unit has drawn attention to the publication, signalling that local firms should start reviewing their AML frameworks now. The new rules are part of a broader EU push to harmonise anti-money laundering supervision and reduce regulatory arbitrage.