       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        1
CHAPTER 373
PREVENTION OF MONEY LAUNDERING ACT
To make provision for the prevention and prohibition of the laundering
of money in Malta.
23rd September, 1994
ACT XIX of 1994 as amended by: Act II of 1998, Legal Notice 71 of
1999; and Acts XXXI of 2001 and III of 2002.
Short title.
Laundering Act.
Interpretation.
Amended by:
XXXI. 2001.2.
2. ( 1 ) In this Act, unless the context otherwise requires -
"criminal activity" means any activity, whenever or wherever
carried out, which, under the law of Malta or any other law,
amounts to:
( a ) a crime or crimes specified in Article 3  ( 1 )   ( a )  of the
United Nations Convention Against Illicit Traffic in
Narcotic Drugs and Psychotropic Substances adopted
on the 19th December 1988 in Vienna reproduced  ( in
the English language only )  in the First Schedule to this
Act; or
( b ) one of the crimes listed in the Second Schedule to this
Act;
"Minister" means the Minister responsible for finance;
"money laundering" means -
( i ) the conversion or transfer of property knowing
that such property is derived directly or
indirectly from, or the proceeds of, criminal
activity or from an act or acts of participation in
criminal activity, for the purpose of or purposes
of concealing or disguising the origin of the
property or of assisting any person or persons
involved or concerned in criminal activity;
( ii ) the concealment or disguise of the true nature,
source, location, disposition, movement, rights
with respect of, in or over, or ownership of
property, knowing that such property is derived
directly or indirectly from criminal activity or
from an act or acts of participation in criminal
activity;
( iii ) the acquisition of property knowing that the
same was derived or originated directly or
indirectly from criminal activity or from an act
or acts of participation in criminal activity;
( iv ) retention without reasonable excuse of property
knowing that the same was derived or originated
directly or indirectly from criminal activity or
  2      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
from an act or acts of participation in criminal
activity; 
Cap. 9.
( v ) attempting any of the matters or activities
defined in the above foregoing sub-paragraphs
( i ) ,  ( ii ) ,  ( iii )  and  ( iv )  within the meaning of
article 41 of the Criminal Code;
( vi ) acting as an accomplice within the meaning of
article 42 of the Criminal Code in respect of any
of the matters or activities defined in the above
foregoing sub- paragraphs  ( i ) ,  ( ii ) ,  ( iii ) ,  ( iv )  and
( v ) ; 
"prescribed" means prescribed by regulations made under this
Act;
 "property" means property of every kind, nature and description,
whether movable or immovable, tangible or intangible and, without
derogation from the generality of the foregoing, shall include -
( a ) any currency, whether or not the same is legal tender in
Malta, bills, securities, bonds, negotiable instruments
or any instrument capable of being negotiable
including one payable to bearer or endorsed payable to
bearer whether expressed in Maltese liri or any other
foreign currency;
( b ) cash or currency deposits or accounts with any bank,
credit or other institution as may be prescribed which
carries or has carried on business in Malta;
( c ) cash or items of value including but not limited to
works of art or jewellery or precious metals; and
( d ) land or any interest therein;
"the Unit" means the unit established by article 15.
  ( 2 ) ( a ) A person may be convicted of a money laundering
offence under this Act even in the absence of a judicial
finding of guilt in respect of the underlying criminal
activity, the existence of which may be established on
the basis of circumstantial or other evidence without it
being incumbent on the prosecution to prove a
conviction in respect of the underlying criminal
activity.
( b ) A person can be separately charged and convicted of
both a money laundering offence under this Act and of
an underlying criminal activity from which the
property or the proceeds, in respect of which he is
charged with money laundering, derived.
( c ) For the purposes of this sub-article, "underlying
criminal activity" refers to the criminal activity from
which the property or other proceeds, which are
involved in a money laundering offence under this Act
have been directly or indirectly derived.
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        3
Added by:
XXXI. 2001.3.
PART I
INVESTIGATION AND PROSECUTION OF OFFENCES
Offences.
Amended by:
III. 2002.166.
3. ( 1 ) Any person committing any act of money laundering
shall be guilty of an offence and shall, on conviction, be liable to a
fine  ( multa )  not exceeding Lm1,000,000  ( one million liri ) , or to
imprisonment for a period not exceeding fourteen years, or to both
such fine and imprisonment.
( 2 ) Where an offence against the provisions of this Act is
committed by a body of persons, whether corporate or
unincorporate, every person who, at the time of the commission of
the offence, was a director, manager, secretary or other similar
officer of such body or association, or was purporting to act in any
such capacity, shall be guilty of that offence unless he proves that
the offence was committed without his knowledge and that he
exercised all due diligence to prevent the commission of the
offence.
Cap. 101.
( 3 ) In proceedings for an offence of money laundering under
this Act the provisions of article 22(1C)( b ) of the Dangerous Drugs
Ordinance shall  mutatis   mutandis  apply.
Cap. 9.
(4) Where the person found guilty of an offence of money
laundering under this Act is an officer of a body corporate as is
referred to in article 121D of the Criminal Code or is a person
having a power of representation or having such authority as is
referred to in that article and the offence of which that person was
found guilty was committed for the benefit, in part or in whole, of
that body corporate, the said person shall for the purposes of this
Act be deemed to be vested with the legal representation of the
same body corporate which shall be liable to the payment of a fine
(multa) of not less than 500 liri and not more than 500,000 liri.
Cap. 9.
(5) Without prejudice to the provisions of article 23 of the
Criminal Code the court shall, in addition to any punishment to
which the person convicted of an offence of money laundering
under this Act may be sentenced and in addition to any penalty to
which a body corporate may become liable under the provisions of
subarticle (4), order the forfeiture in favour of the Government of
the proceeds or of such property the value of which corresponds to
the value of such proceeds whether such proceeds have been
received by the person found guilty or by the body corporate
referred to in the said subarticle (4) and any property of or in the
possession or under the control of any person found guilty as
aforesaid or of a body corporate as mentioned in this sub-article
shall, unless proved to the contrary, be deemed to be derived from
the offence of money laundering and liable to confiscation or
forfeiture by the court:
Provided that, for the purposes of this sub-article,
"proceeds" means any economic advantage and any property
derived from or obtained, directly or indirectly, through criminal
activity and includes any income or other benefit derived from such
property.
  4      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
Cap. 9.
(6) Without prejudice to the provisions of article 5 of the
Criminal Code, the Maltese courts shall also have jurisdiction over
any offence of money laundering under this Act in the same
circumstances as are mentioned in article 121C of the Criminal
Code.
Additional powers 
of investigation.
4. ( 1 ) Where, upon information received, the Attorney
General has reasonable cause to suspect that a person  ( hereinafter
referred to as "the suspect" )  is guilty of the offence mentioned in
article 3, he may apply to the Criminal Court for an order
( hereinafter referred to as an "investigation order" )  that a person
( including a body or association of persons, whether corporate or
unincorporate )  named in the order who appears to be in possession
of particular material or material of a particular description which
is likely to be of substantial value  ( whether by itself or together
with other material )  to the investigation of, or in connection with,
the suspect, shall produce or grant access to such material to the
person or persons indicated in the order; and the person or persons
so indicated shall, by virtue of the investigation order, have the
power to enter any house, building or other enclosure for the
purpose of searching for such material.
( 2 ) Where an investigation order has been made or applied for,
whosoever, knowing or suspecting that the investigation is taking
place, discloses that an investigation is being undertaken or makes
any other disclosures likely to prejudice the said investigation shall
be guilty of an offence and shall, on conviction, be liable to a fine
( multa )  not exceeding five thousand liri or to imprisonment not
exceeding twelve months, or to both such fine and imprisonment:
Provided that in proceedings for an offence under this sub-
article, it shall be a defence for the accused to prove that he did not
know or suspect that the disclosure was likely to prejudice the
investigation.
( 3 ) An investigation order -
Cap. 9.
Cap. 12.
( a ) shall not confer any right to production of, access to,
or search for communications between an advocate or
legal procurator and his client, and between a
clergyman and a person making a confession to him,
which would in legal proceedings be protected from
disclosure by article 642 ( 1 )  of the Criminal Code or by
article 588 ( 1 )  of the Code of Organization and Civil
Procedure;
( b ) shall, without prejudice to the provisions of the
foregoing paragraph, have effect notwithstanding any
obligation as to secrecy or other restriction upon the
disclosure of information imposed by any law or
otherwise; and
( c ) may be made in relation to material in the possession
of any government department.
( 4 ) Where the material to which an application under sub-
article  ( 1 )  relates consists of information contained in a computer,
the investigation order shall have effect as an order to produce the
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        5
material or give access to such material in a form in which it can be
taken away and in which it is visible and legible.
( 5 ) Any person who, having been ordered to produce or grant
access to material as provided in sub-article  ( 1 )  shall, without
lawful excuse  ( the proof whereof shall lie on him )  wilfully fail or
refuse to comply with such investigation order, or who shall
wilfully hinder or obstruct any search for such material, shall be
guilty of an offence and shall, on conviction, be liable to a fine
( multa )  not exceeding five thousand liri or to imprisonment not
exceeding twelve months, or to both such fine and imprisonment.
( 6 ) Together with or separately from an application for an
investigation order, the Attorney General may, in the circumstances
mentioned in sub-article  ( 1 ) , apply to the Criminal Court for an
order  ( hereinafter referred to as an "attachment order" )  -
( a ) attaching in the hands of such persons  ( hereinafter
referred to as "the garnishees" )  as are mentioned in the
application all moneys and other movable property due
or pertaining or belonging to the suspect;
( b ) requiring the garnishee to declare in writing to the
Attorney General, not later than twenty-four hours
from the time of service of the order, the nature and
source of all money and other movable property so
attached; and
( c ) prohibiting the suspect from transferring or otherwise
disposing of any movable or immovable property.
( 7 ) Before making an investigation order or an attachment
order, the court may require to hear the Attorney General in
chambers and shall not make such order -
( a ) unless it concurs with the Attorney General that there
is reasonable cause as provided in sub-article  ( 1 ) ; and
( b ) in the case of an investigation order, unless the court is
satisfied that there are reasonable grounds for
suspecting that the material to which the application
relates -
( i ) is likely to be of substantial value  ( whether by
itself or together with other material )  to the
investigation for the purpose of which the
application is made, and
( ii ) does not consist of communications referred to
in sub-article  ( 3 )( a ) .
Cap. 12.
( 8 ) The provisions of article 381 ( 1 )( a ) ,  ( b )   and   ( e )  and of
article 382 ( 1 )  of the Code of Organization and Civil Procedure
shall,  mutatis mutandis , apply to the attachment order.
  ( 9 ) An attachment order shall be served on the garnishee and
on the suspect by an officer of the Executive Police not below the
rank of inspector.
( 10 ) Any person who acts in contravention of an attachment
order shall be guilty of an offence and shall, on conviction, be
  6      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
liable to a fine  ( multa )  not exceeding five thousand liri or to
imprisonment for a period not exceeding twelve months or to both
such fine and imprisonment:
Provided that where the offence consists in the payment or
delivery to any person by the garnishee of any moneys or other
movable property attached as provided in sub-article  ( 6 )( a )  or in
the transfer or disposal by the suspect of any movable or
immovable property in contravention of sub-article  ( 6 )( c ) , the fine
shall always be at least twice the value of the money or property in
question.
( 11 ) An attachment order shall, unless it is revoked earlier by
the Attorney General by notice in writing served on the suspect and
on the garnishee in the manner provided for in sub-article  ( 9 ) , cease
to be operative on the expiration of thirty days from the date on
which it is made; and the court shall not make another attachment
order with respect to that suspect unless it is satisfied that
substantially new information with regards to the offence
mentioned in article 3 is available:
Provided that the said period of thirty days shall be held in
abeyance for such time as the suspect is away from these Islands
and the Attorney General informs of this fact the garnishee by
notice in writing served in the manner provided for in sub-article
( 9 ) .
( 12 ) In the course of any investigation of an offence against
article 3, the Executive Police may request a magistrate to hear on
oath any person who they believe may have information regarding
such offence; and the magistrate shall forthwith hear that person on
oath.
Cap. 9.
( 13 ) For the purpose of hearing on oath a person as provided in
sub-article  ( 12 )  the magistrate shall have the same powers as are by
law vested in the Court of Magistrates  ( Malta )  or the Court of
Magistrates  ( Gozo )  as a court of criminal inquiry as well as the
powers mentioned in article 554 of the Criminal Code; provided
that such hearing shall always take place behind closed doors.
( 14 ) It shall not be lawful for any court to issue a warrant of
prohibitory injunction to stop the execution of an investigation
order. 
Applicability of 
Dangerous Drugs 
Ordinance.
Added by:
III. 2002.166.
Cap. 101.
4A. The provisions of article 30B of the Dangerous Drugs
Ordinance shall apply  mutatis mutandis  to proceeds within the
meaning of article 3(5).
Freezing of 
property of person 
accused.
5. ( 1 ) Where a person is charged under article 3, the court
shall at the request of the prosecution make an order -
( a ) attaching in the hands of third parties in general all
moneys and other movable property due or pertaining
or belonging to the accused, and
( b ) prohibiting the accused from transferring, pledging,
hypothecating or otherwise disposing of any movable
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        7
or immovable property:
Provided that the court shall in such an order determine
what moneys may be paid to or received by the accused during the
subsistence of such order, specifying the sources, manner and other
modalities of payment, including salary, wages, pension and social
security benefits payable to the accused, to allow him and his
family a decent living in the amount, where the means permit, of
six thousand liri every year:
Provided further that the court may also -
( a ) authorise the payment of debts which are due by the
accused to bona fide creditors and which were
contracted before such order was made; and
( b ) on good ground authorise the accused to transfer
movable or immovable property.
( 2 ) Such order shall -
( a ) become operative and binding on all third parties
immediately it is made, and the Registrar of the Court
shall cause a notice thereof to be published without
delay in the Gazette, and shall also cause a copy
thereof to be registered in the Public Registry in
respect of immovable property; and
( b ) remain in force until the final determination of the
proceedings, and in the case of a conviction until the
sentence has been executed.
( 3 ) The court may for particular circumstances vary such order,
and the provisions of the foregoing sub-articles shall apply to such
order as so varied.
( 4 ) Every such order shall contain the name and surname of the
accused, his profession, trade or other status, father’s name,
mother’s name and maiden surname, place of birth and place of
residence and the number of his identity card or other identification
document, if any.
( 5 ) Where any money is or becomes due to the accused from
any person while such order is in force such money shall, unless
otherwise directed in that order, be deposited in a bank to the credit
of the accused.
( 6 ) When such order ceases to be in force as provided in sub-
article  ( 2 )( b )   the Registrar of the Court shall cause a notice to that
effect to be published in the Gazette, and shall enter in the Public
Registry a note of cancellation of the registration of that order.
Penalty for 
contravening court 
order.
6. Any person who acts in contravention of a court order
mentioned in article 5 shall be guilty of an offence and shall, on
conviction, be liable to a fine  ( multa )  not exceeding five thousand
liri or to imprisonment for a period not exceeding twelve months,
or to both such fine and imprisonment, and any act so made in
contravention of such court order shall be null and without effect at
law.
  8      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
Special court 
proceedings.
7. ( 1 ) Where an order of forfeiture is made under article 3 ( 3 ) ,
the person found guilty and any other person having an interest
may bring an action for a declaration that any or all of the movable
or immovable property so forfeited is not profits or proceeds from
the commission of an offence under article 3 or is otherwise
involved in the offence of money laundering, nor property acquired
or obtained, directly or indirectly, by or through any such profits or
proceeds.
( 2 ) Such action shall be brought not later than three months
from the date on which the sentence ordering the forfeiture shall
have become definite, by an application in the Civil Court, First
Hall.
  ( 3 ) The applicant shall attach to the application all such
documents in support of his claim as it may be in his power to
produce and shall indicate in his application the names of all the
witnesses he intends to produce, stating in respect of each the proof
which he intends to make.
( 4 ) The court shall, without delay, set down the application for
hearing at an early date, which date shall in no case be later than
thirty days from the date of the filing of the application.
( 5 ) The application and the notice of the date fixed for hearing
shall be served on the Commissioner of Police without delay, and
the said Commissioner shall file his reply thereto within fifteen
days after the date of the service of the application.
( 6 ) The court shall hear the application to a conclusion within
twenty working days from the date fixed for the original hearing of
the application, and no adjournment shall be granted except either
with the consent of both parties or for an exceptional reason to be
recorded by the court, and such adjourned date shall not be later
than that justified by any such reason.
Cap. 12.
( 7 ) Saving the preceding provisions of this article, the
provisions of the Code of Organization and Civil Procedure
relating to proceedings before the Civil Court, First Hall, shall
apply in relation to any such application.
( 8 ) Any decision revoking the forfeiture of immovable property
shall be deemed to transfer the title of such property back from the
Government to the party in favour of whom it is given, and such
party may obtain the registration of such transfer in the Public
Registry. 
Reversion of 
property ceasing to 
be forfeited.
8. When the court allows the demand for a declaration as
provided in article 7 ( 1 )  in respect of any property forfeited, such
property shall cease to be forfeited and shall revert to the applicant
in virtue of the judgment upon its becoming definite, and the
applicant shall thereupon be entitled to the recovery of the income
received by the Government from such property during the period
of its forfeiture.
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        9
Powers of 
investigation in 
connection with 
offences 
cognizable by 
courts outside 
Malta. 
Added by:
II. 1998.9. 
Cap. 101.
9. (1) Where the Attorney General receives a request made
by the judicial or prosecuting authority of any place outside Malta
for investigations to take place in Malta in respect of a person
(hereinafter referred to as "the suspect") suspected by that authority
of an act or omission which if committed in these Islands, or in
corresponding circumstances, would constitute an offence under
article 3, the Attorney General may apply to the Criminal Court for
an investigation order or an attachment order or for both and the
provisions of article 24A of the Dangerous Drugs Ordinance shall
mutatis   mutandis  apply to that application and to the suspect and to
any investigation or attachment order made by the court as a result
of that application.
(2) The words "investigation order" in sub-articles (2) and (5)
of the same  article 24A shall be read and construed as including an
investigation order made under the provisions of this article.
Cap. 101.
(3) The words "attachment order" in article 24A(6A) of the
Dangerous Drugs Ordinance shall be read and construed as
including an attachment order made under the provisions of this
article.
Freezing of 
property of person 
accused with 
offences 
cognizable by 
courts outside 
Malta. 
Added by: 
II. 1998.9. 
Cap. 101.
10. (1) Where the Attorney General receives a request made
by a judicial or prosecuting authority of any place outside Malta for
the temporary seizure of all or any of the moneys or property,
movable or immovable, of a person (hereinafter in this article
referred to as "the accused") charged or accused in proceedings
before the courts of that place of an offence consisting in an act or
an omission which if committed in these Islands, or in
corresponding circumstances, would constitute an offence under
article 3, the Attorney General may apply to the Criminal Court for
an order (hereinafter referred to as a "freezing order") having the
same effect as an order as is referred to in article 22A(1) of the
Dangerous Drugs Ordinance, and the provisions of the said article
22A shall, subject to the provisions of sub-article (2) of this article,
apply  mutatis   mutandis  to that order.
Cap. 101.
Drugs Ordinance shall apply to an order made under this article as
if it were an order made under the said article 24C.
Cap. 101.
apply to any person who acts in contravention of a freezing order
under this article.
Enforcement of 
confiscation orders 
made by courts 
outside Malta 
following 
conviction for 
offences 
cognizable by 
those courts.
Added by:
II. 1998.9.
Cap. 101.
11. (1) A confiscation order made by a court outside Malta
providing or purporting to provide for the confiscation or forfeiture
of any property of or in the possession or under the control of any
person convicted of a relevant offence shall be enforceable in Malta
in accordance with the provisions of article 24D(2) to (11) of the
Dangerous Drugs Ordinance.
(2) For the purposes of this article "confiscation order"
includes any judgment, decision, declaration, or other order made
by a court whether of criminal or civil jurisdiction providing or
purporting to provide for the confiscation or forfeiture of property
as is described in sub-article (1).
  10      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
 (3) For the purposes of this article "relevant offence" means
any offence consisting in any act which if committed in these
Islands, or in corresponding circumstances, would constitute the
offence mentioned in article 3.
Rules and 
regulations.
12. ( 1 ) The Minister may make rules or regulations generally
for the better carrying out of the provisions of this Act and in
particular may by such rules or regulations provide for the
regulation and control of banks, credit and other financial
institutions to provide  inter alia  for procedures and systems for
training, identification, record-keeping, internal reporting and
reporting to supervisory authorities for the prevention of money
laundering.
( 2 ) The Minister may by regulations extend the provisions of
this Act in whole or in part and of any regulations made thereunder
to categories of undertakings and to professions which engage in
activities which, in the opinion of the Minister, are particularly
likely to be used for money laundering purposes.
  ( 3 ) Rules or regulations made under this article may impose
punishments or other penalties in respect of any contravention or
failure of compliance not exceeding a fine  ( multa )  of Lm20,000
( twenty thousand liri )  or imprisonment for a term not exceeding
two years or both such fine and imprisonment.
Matters to be 
prescribed by 
regulations.
13. Saving the provisions of article 12, the Minister may, in
consultation with the Minister responsible for justice -
( a ) prescribe by regulation any matter required to be
prescribed by this Act;
( b ) by regulation amend, alter or add to the list of offences
specified in the Second Schedule to this Act.
PART II
FINANCIAL INTELLIGENCE ANALYSIS UNIT
Definitions.
Added by:
XXXI. 2001.4.
14. In this Part, unless the context otherwise requires:
"subject person" means any person required to maintain internal
reporting procedures and to report  transactions suspected to
involve money laundering under regulations in force from time to
time under this Act or as may be prescribed under this Act;
"supervisory authority" shall have the same meaning assigned to
it by regulations in force from time to time under this Act or as may
be prescribed under this Act;
"the Board" means the Board of Governors referred to in article
18;
"the Chairman" means the Chairman of the Board appointed
under article 20;
"the Deputy Chairman" means the Deputy Chairman of the Board
appointed under article 20;
"the Director" means the Director of the Unit appointed or
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        11
recruited under article 23.
Establishment of 
the Unit.
Added by:
XXXI. 2001.4.
15. (1) There shall be a government agency, to be known as
the Financial Intelligence Analysis Unit.
(2) The Unit shall be a body corporate having a distinct legal
personality and shall be capable, subject to the provisions of this
Act, of entering into contracts, of concluding memoranda of
understanding or other agreements with any foreign body, authority
or agency as is referred to in article 16(1)( k ), of acquiring, holding
and disposing of any kind of property for the purposes of its
functions, of suing and being sued, and of doing all such things and
entering into all such transactions as are incidental or conducive to
the exercise or performance of its functions under this Act,
including the borrowing of money.
(3) The Unit shall enter into an agency performance agreement
with the Minister which agreement shall determine the funding of
the agency and, without prejudice to the generality of article 16(1),
any specific tasks within the scope of the functions of the Unit
which are to be addressed and achieved by the Unit.
(4) The members of the Unit and all its employees shall abide
by any Code of ethics applicable to public officers and shall,
subject to any law to the contrary, have the same obligations
thereunder:
Provided that the Unit may, with the concurrence of the
Minister, draw up service values and a Code of Ethics to
supplement any public service Code of Ethics in respect of the
Unit. 
Functions of the 
Unit.
Added by:
XXXI. 2001.4.
16. (1) Subject to the other provisions of this Act and without
prejudice to any other power or function conferred on it by this Act
or by any other law, the Unit shall be responsible for the collection,
collation, processing, analysis and dissemination of information
with a view to combating money laundering and without prejudice
to the generality of the aforesaid shall in particular have the
following functions:
( a ) to receive reports of transactions suspected to involve
money laundering made by any subject person in
pursuance of any regulation made under article 12, to
supplement such reports with such additional
information as may be available to it or as it may
demand, to analyse the report together with such
additional information and to draw up an analytical
report on the result of such analysis;
( b ) to send any analytical report as is referred to in
paragraph ( a ) to the Commissioner of Police for
further investigation if having considered the
suspicious transaction report, the Unit also has
reasonable grounds to suspect that the transaction is
suspicious and could involve money laundering;
( c ) to monitor compliance by subject persons and to co-
operate and liaise with supervisory authorities to
  12      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
ensure such compliance;
( d ) to send to the Commissioner of Police together with
any analytical report sent in accordance with
paragraph ( b ) or at any  time thereafter any
information, document, analysis or other material in
support of the report;
( e ) to instruct any subject person to take such steps as it
may deem appropriate to facilitate any money-
laundering investigation in general or the investigation
of any particular suspicious transaction report;
( f ) to gather information on the financial and commercial
activities in the country for analytical purposes with a
view to detecting areas of activity which may be
vulnerable to money laundering;
( g ) to compile statistics and records, disseminate
information, make recommendations, issue guidelines
and advice the Minister on all matters and issues
relevant to the prevention, detection, investigation,
prosecution and punishment of money laundering
offences;
( h ) to promote the training of, and to provide training for,
personnel employed with any subject person in respect
of any matter, obligation or activity relevant to the
prevention of money laundering;
( i ) to consult with any person, institution or organization
as may be appropriate for the purpose of discharging
any of its functions;
( j ) to advise and assist persons, whether physical or legal,
to put in place and develop effective measures and
programmes for the prevention of money laundering;
( k ) upon request or on its own motion, to exchange
information with any foreign body, authority or agency
which it considers to have functions equivalent or
analogous to those mentioned in this sub-article and
with any supervisory authority in Malta or with any
supervisory authority outside Malta which it deems to
have equivalent or analogous functions as a
supervisory authority in Malta, subject to such
conditions and restrictions as it may determine,
including the prior conclusion, if it deems so
necessary, of any memorandum of understanding or
other agreement, to regulate any such exchange of
information, where that information may be relevant to
the processing or analysis of information or to
investigations regarding financial transactions related
to money laundering and the natural or legal persons
involved;
( l ) to report to the Commissioner of Police any activity
which it suspects involves money laundering and of
which it may  become aware in the course of the
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        13
discharge of any of its functions.
(2) The Unit shall at least once a year prepare a report on its
activities in general to the Minister and shall afford to the Minster
facilities for obtaining information with respect to its property and
its activities in general and furnish him with returns, accounts and
other information with respect thereto.
Liability for 
damages.
Added by:
XXXI. 2001.4.
17. The Unit, its Board, officers and employees shall not be
liable in damages for anything done or omitted to be done in the
discharge or purported discharge of any function under this Act,
unless the act or omission is shown to have been done or omitted to
be done, as the case may be, in bad faith.
Distribution of 
duties of the Unit.
Added by:
XXXI. 2001.4.
18. (1) The Unit shall consist of a Board and a Director. 
(2) The Board  shall be responsible for the policy to be adopted
by the Unit and to be executed and pursued by the Director and to
ensure that the Director carries out that policy accordingly. The
Board shall also be responsible for advising the Minister as
provided in article 16(1)( g ).
(3) The Director shall be responsible for the execution of the
policy established by the Board and for carrying out all the
functions of the Unit not attributed by this Act to the Board in
accordance with the policy and subject to the general supervision of
the Board.
(4) The Board may appoint any officer or any member of the
staff of the Unit to act as director when the Director is absent,
unable to act or on vacation or during any vacancy in the office of
the Director.
Composition of the 
Board.
Added by:
XXXI. 2001.4.
19. (1) The Board shall consist of: 
( a ) four members appointed by the Minister in the manner
provided in sub-article (2);
( b ) not more than two other members, as may be requested
by the Board, appointed by the Minister in the manner
provided in sub-article (3).
(2) The Minister shall appoint the four members referred to in
sub-article (1)( a ) by selecting one member from each of four
panels, each of at least three persons, nominated respectively by the
Attorney General, the Governor of the Central Bank, the Chairman
of the Malta Financial Services Authority and the Commissioner of
Police.
(3) The Minister shall appoint each additional member as may
be requested by the Board in pursuance of the provisions of sub-
article (1)( b ) from a panel of not less than three persons nominated
by the authority to be indicated by the Board with respect to each
additional member.
 (4) The members of the Board shall be appointed for a term of
three years against such remuneration as the Minister may
determine and may be re-appointed in the manner laid down in sub-
articles (2) or (3), as the case may be, on the expiration of their
term of office.
  14      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
(5) The members of the Board shall discharge their duties in
their own individual judgement and shall not be subject to the
direction or control of any other person or authority.
(6) A person shall not be qualified to be appointed, or to hold
office, as a member of the Board if he:
( a ) is legally incapacitated; or
( b ) has been declared bankrupt or has made a composition
or scheme of arrangement with his creditors; or
Cap. 101.
Cap. 31.
( c ) has been convicted of an offence against this Act or of
an offence listed in the First Schedule or in the Second
Schedule or of an offence of money laundering against
the provisions of the Dangerous Drugs Ordinance or of
the Medical and Kindred Professions Ordinance; or
( d ) is not a salaried official on the permanent staff in the
service of the official by whom he is to be or has been
recommended for appointment; or
( e ) is a salaried official of or is otherwise employed with
or in the service of a subject person or is in any other
manner professionally connected to a subject person.
(7) A member of the Board may be relieved of office by the
Minister, after consultation with the official by whom the member
was recommended, on the ground of inability to perform the
functions of his office, whether due to infirmity of mind or of body,
or to any other cause, or of misbehavior; and, for the purposes of
this sub-article, repeated unjustified non-attendance of Board
meetings may be deemed to amount to misbehavior.
(8) A member of the Board may also resign from office by
letter addressed to the Minister.
(9) Where any vacancy occurs in the membership of the Board
for any reason other than the lapse of the term of office that
vacancy shall, for the remainder of the term of office which has
become vacant, be filled by another member appointed by the
Minister from among a panel of not less than three persons
nominated by the official who nominated the panel from among
whom the member who vacated office had been appointed.
Chairman and 
Deputy Chairman 
of the Board.
Added by:
XXXI. 2001.4.
20. A Chairman and Deputy Chairman shall be appointed by
the Prime Minister after consultation with the Minister from among
the members of the Board. The Chairman shall be the Head of the
Unit and the Deputy Chairman shall have all the powers and
perform all the functions of the Chairman during his absence or
inability to act as Chairman or while he is on vacation or during
any vacancy in the office of chairman.
Meetings of the 
Board.
Added by:
XXXI. 2001.4.
21. (1) The Board shall meet within one month from its
constitution and as often as may be necessary or expedient
thereafter, but in no case less frequently than ten times in each year.
The meetings of the Board shall be called by the Chairman on his
own initiative or at the request of any two of the other members or
at the request of the Director.
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        15
(2) The Board shall not act unless a quorum consisting of the
Chairman or Deputy Chairman and not less than two other
members is present. 
(3) The meetings of the Board shall be chaired by the
Chairman, or in his absence, by the Deputy Chairman.
(4) The decisions of the Board shall be adopted by a simple
majority of the votes of the members present and voting and in the
event of an equality of votes the member presiding at the meeting
shall have and exercise a second or casting vote. 
(5) The Director shall be entitled to attend the meetings of the
Board and to take part in the discussions, but shall have no vote.
Saving the provisions of sub-article (2) the absence of the Director
from any meeting shall not invalidate the proceedings of the
meeting.
(6) Any vacancy among the members of the Board, and any
participation therein by a person not entitled so to do, shall not
invalidate the proceedings of the Board.
(7) Subject to the provisions of this Act, the Board may
regulate its own procedure.
(8) All acts done by any person acting in good faith as a
member of the Unit shall be valid as if he were a member
notwithstanding that some defect in his appointment or
qualification be afterwards discovered.
Decisions in case 
of emergency.
Added by:
XXXI. 2001.4.
22. In case of emergency, decisions shall be taken by at least
two members of the Board one of whom shall be the Chairman or
Deputy Chairman.
The Executive and 
other staff of the 
Unit.
Added by:
XXXI. 2001.4.
23. The Director and the other officers and staff of the Unit
shall be appointed or recruited by the Board according to such
procedures and on such terms and conditions and in such numbers
as the Board may determine.
The police liaison 
officer.
Added by:
XXXI. 2001.4.
24. (1) The Commissioner of Police shall detail a police
officer not below the rank of Inspector to act as a liaison officer to
liaise with the Unit.
(2) Notwithstanding anything to the contrary in any other law
the police liaison officer detailed as aforesaid shall be bound to
keep secret and confidential any information that may come to his
knowledge as a result of his duties as a liaison officer with the Unit
and shall not disclose such information to any person other than a
member of the Unit or any of its staff in the course of the exercise
of his functions as a liaison officer with the Unit. 
Provided that where the Unit has submitted a report to the
Police in accordance with the provisions of this Act the Unit may,
without prejudice to the provisions of article 31(4), authorise the
police liaison officer to disclose to the Police, or to any other
competent authority identified by the Unit as having an interest in
the investigation of the report, any  information relevant to the said
report that may have come or may come to the knowledge of the
police liaison officer in the course of his assignment with the Unit.
  16      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
(3) The police liaison officer shall, subject to complying with
any internal requirements of the police force, make available to the
Unit or to any member of its staff any information at the disposal of
the police or which is part of police records to the extent that such
information is relevant to the exercise of the functions of the Unit.
(4) The police liaison officer shall assist the Unit in the
analysis and processing of suspicious transaction reports and of
information and intelligence data collected by the Unit in the
exercise of its functions and shall advise the Unit on investigative
techniques and on all law enforcement issues. 
Legal and judicial 
representation of 
the Unit.
Added by:
XXXI. 2001.4.
25. (1) The legal and judicial representation of the Unit shall
vest in the Chairman and in his absence in the Deputy Chairman:
Provided that the Unit may appoint any one or more of its
other members or of its officers or employees to appear in the name
and on behalf of the Unit in any judicial proceedings and in any act,
contract, instrument or other document whatsoever.
(2) Any document purporting to be an instrument made or
issued by the Unit and to be signed by the Chairman or by the
Deputy Chairman on behalf of the Unit shall be received in
evidence and shall, until the contrary is proved, be deemed to be an
instrument made or issued by the Unit.
Compliance.
Added by:
XXXI. 2001.4.
26. (1) The Unit shall be responsible to ensure that subject
persons comply with the provisions of this Act and any regulations
made thereunder in so far as these are applicable to them.
(2) If the Unit so considers necessary it may:
( a ) authorise any of its officers, employees or agents, on
producing evidence of his authority, to require any
subject person to provide him forthwith with such
information or documents relating to that subject
person’s internal procedures for compliance with the
provisions of this Act and any regulation made
thereunder and to answer any questions as the Unit
may reasonably require for the performance of its
functions under sub-article (1);
( b ) by notice in writing served on a subject person require
that person to produce, within the time and at the place
as may be specified in that notice, any documents as
may be so specified in the notice provided such
documents are reasonably required by the Unit for the
performance of its functions under this Act.
(3) Where the documents required under sub-article (2) are
produced, the Unit may make notes and take copies of the whole or
any part of such documents.
(4) Where the documents required under sub-article (2) are not
produced, the Unit may require the subject person who was
required to produce them to state, in writing, why such documents
could not be produced. 
(5) Subject to the provisions of article 27, a supervisory
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        17
authority is, for the purposes of sub-article (2)( a ), considered to be
an agent of the Unit.
Co-operation with 
supervisory 
authorities.
Added by:
XXXI. 2001.4.
27. (1) Without prejudice to the generality of the provisions of
this Act, the Unit shall co-operate with the supervisory authorities
to ensure that the financial and other systems are not used for
criminal purposes and thus safeguard their integrity.
(2) Without prejudice to the special provisions of any other
law applicable to them, the supervisory authorities shall extend all
assistance and co-operation to the Unit in the fulfillment of its
responsibilities under this Act.
(3) In pursuance of its responsibilities under the provisions of
article 26, the Unit may request a supervisory authority to do  all or
any of the following and the supervisory authority shall not
unreasonably withhold its assistance:
( a ) to provide the Unit with such information of which the
supervisory authority may become aware of in the
course of its supervisory functions and which indicates
that a subject person falling under the competence of
the supervisory authority may not be in compliance
with any requirements under this Act or any
regulations made thereunder;
( b ) to carry out, on behalf of the Unit, on-site
examinations on subject persons falling under the
competence of the supervisory authority with the aim
of establishing that person’s compliance with the
provisions of this Act and any regulations made
thereunder and to report to the Unit accordingly.
(4) The Unit may authorise any of its officers or employees to
accompany the supervisory authority in any on-site examination as
may be required by the Unit under sub-article (3)( b ) and any such
officer or employee shall be entitled, on producing, if requested,
evidence of his authority, to enter any premises of the subject
person on whom an examination is being undertaken.
Delay of execution 
of a suspicious 
transaction.
Added by:
XXXI. 2001.4.
28. (1) Where any subject person is aware or suspects that a
transaction which is to be executed may be linked to money
laundering that subject person shall inform the Unit before
executing the transaction giving all the information concerning the
transaction including the period within which it is to be executed.
Such information may be given by telephone but shall be forthwith
confirmed by fax or by any other written means and the Unit shall
promptly acknowledge the receipt of the information.
(2) Where the matter is serious or urgent and it considers such
action necessary, the Unit may oppose the execution of a
transaction before the expiration of the period referred to in sub-
article (1) and notice of such opposition shall be immediately
notified by fax or by any other written means.
(3) The opposition by the Unit shall halt the execution of the
transaction for twenty-four hours from the time of the notification
referred to in sub-article (1) unless the Unit shall authorise earlier,
  18      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
by fax or otherwise in writing, the execution of the transaction.
(4) Where within the period referred to in sub-article (1) no
opposition has been made by the Unit as provided in sub-article (2)
the subject person concerned may proceed to the execution of the
transaction in question and where opposition has been made as
provided aforesaid the subject person concerned may proceed to the
execution of the transaction in question upon the lapse of the period
referred to in sub-article (3) unless in the meantime an attachment
order has been served on the subject person.
Actionn after 
execution of 
suspicious 
transaction which 
could not be 
delayed.
Added by:
XXXI. 2001.4.
29. Where any subject person is aware or suspects that a
transaction which is to be executed may be linked to money
laundering but it is unable to inform the Unit before the transaction
is executed, either because it is not possible to delay executing the
transaction due to its nature, or because delay in executing the
transaction could prevent the prosecution of the individuals
benefiting from the suspected money laundering, the subject person
shall inform the Unit immediately after executing the transaction
giving the reason why the Unit was not so informed before
executing the transaction.
Power of the Unit 
to demand 
information.
Added by:
XXXI. 2001.4.
30. (1) When the Unit receives a report as is referred to in
article 16(1)( a ) or when from information in its possession the Unit
suspects that any subject person may have been used for any
transaction suspected to involve money laundering the Unit may
demand from the subject person making the report or from the
subject person which is suspected of having been used for any
transaction suspected to involve money laundering as well as from
any other subject person, the police, any Government Ministry,
department, agency or other public authority, or any other person,
physical or legal, and from any supervisory authority, any
additional information that it deems useful for the purpose of
integrating and analysing the report or information in its
possession.
Cap. 377.
Cap. 9.
(2) Notwithstanding anything contained in the Professional
Secrecy Act and any obligation of secrecy or confidentiality under
any other law the subject person or any other person, physical or
legal, and any authority or entity from whom information is
demanded by the Unit in pursuance of the provisions of sub-article
(1) shall communicate the information requested to the Unit and for
the purposes of article 257 of the Criminal Code any such
disclosure shall be deemed to be a disclosure of information to a
public authority compelled by law:
Cap. 9.
Cap. 12.
Provided that nothing in this sub-article shall imply any
obligation on the Attorney General to communicate to the Unit any
information which in any way relates to or is connected with or
came into his possession as a result of the exercise by him of any
powers referred to in article 91(3) of the Constitution or any
obligation on any person to communicate to the Unit any
information which would in legal proceedings be protected from
disclosure by article 642(1) of the Criminal Code or by article
588(1) of the Code of Organization and Civil Procedure.
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        19
Transmission of 
information to 
police for 
investigation.
Added by:
XXXI. 2001.4.
31. (1) Where following an analysis of a suspicious
transaction report and of the information in its possession relevant
to the report the Unit is of the opinion that a reasonable suspicion
of money laundering persists the report together with any relevant
information in its possession and the results and conclusions of any
analysis carried out by the Unit shall be transmitted to the Police
for further investigation.
(2) The provisions of sub-article (1) shall also apply mutatis
mutandis to any suspicion of money laundering which the Unit may
have formed on the basis of information in its possession without
any suspicious transaction report having been made to the Unit or
independently of any such report.
(3) Where the Unit transmits information to the Police in
pursuance of the provisions of sub-articles (1) and (2) and a subject
person over which another authority or agency has supervisory or
regulatory functions is involved the Unit shall inform the said
authority or agency of action taken.
(4) Where the Unit transmits information to the Police in
pursuance of sub-articles (1) and (2) it shall thereafter transmit to
the Police any further relevant information in respect of the
suspicion communicated to the Police as aforesaid.
Information.
Added by:
XXXI. 2001.4.
32. The Unit shall, at the request of the subject person, give to
the subject person which reports any transaction suspected to
involve money laundering such information as the Unit considers to
be of interest to the subject person in order to enable that subject
person to regulate its affairs and to assist it to carry out its duties
under this Act or any regulation made thereunder.
Tipping off by the 
officials or 
employees of the 
Unit.
Added by:
XXXI. 2001.4.
33. Any official or employee of the Unit who, in any
circumstances other than those provided for in the proviso to article
24(2), discloses to the person concerned or to a third party that an
investigation is being carried out by the Unit, or that information
has been transmitted to the Unit by a subject person, or that the
Unit has transmitted information to the police for investigation,
shall be guilty of an offence and liable on conviction to a fine
( multa ) not exceeding fifty thousand Maltese liri (Lm50,000) or to
imprisonment for a term not exceeding five years or to both such
fine and imprisonment. 
Confidentiality and 
permissable 
disclosure of 
information.
Added by:
XXXI. 2001.4.
34. (1) The Unit, and its officers, employees and agents,
whether still in the service of the Unit or not, shall not disclose any
information relating to the affairs of the Unit or of any person,
physical or legal, which they have acquired in the performance of
their duties or the exercise of their functions under this Act except:
( a ) when authorised to do so under any of the provisions
of this Act;
( b ) for the purpose of the performance of their duties or
the exercise of their functions under this Act;
( c ) when specifically and expressly required to do so
under a provision of any law.
(2) The Unit may disclose any document or information
  20      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
referred to in sub-article (1) to an organization outside Malta which
in the opinion of the Unit has functions similar to those of the Unit
and which has similar duties of secrecy and confidentiality as those
of the Unit or to a supervisory authority in Malta or to a
supervisory authority outside Malta which in the opinion of the
Unit has duties similar to those of a supervisory authority in Malta.
(3) The Unit may, in particular, refuse to disclose any
document or information if:
( a ) in its opinion such disclosure could lead to causing
prejudice to a criminal investigation in course in
Malta; or
( b ) due to exceptional circumstances, such disclosure
would be clearly disproportionate to the legitimate
interests of Malta or of a natural or legal person; or
( c ) such disclosure would not be in accordance with
fundamental principles of Maltese law:
Provided that any refusal under this sub-article shall be
clearly explained to the body or authority requesting the disclosure
of the document or information.
(4) The Unit may also disclose any document or information
referred to in sub-article (1) to a competent authority in Malta or
outside Malta investigating any act or omission committed in Malta
and which constitutes, or if committed outside Malta would in
corresponding circumstances constitute:
Cap. 101.
( a ) any of the offences referred to in article 22(2)( a )(1) of
the Dangerous Drugs Ordinance; or
Cap. 31.
( b ) any of the offences referred to in article 120A(2)( a )(1)
of the Medical and Kindred Professions Ordinance; or
( c ) any offence of money laundering within the meaning
of this Act:
Provided that such disclosure shall be subject to the
condition that the information or document disclosed shall not,
without the express consent of the Unit, be used for any other
purpose other than that of the investigation or for any subsequent
prosecution for the offence which is the subject of the investigation
or for any proceedings which may lead to the confiscation of any
proceeds from the said offence.
Revenue of the 
Unit.
Added by:
XXXI. 2001.4.
35. The revenue of the Unit shall consist of:
( a ) fees payable to the Unit for services rendered by it;
( b ) rents, interests and profits accruing from property,
deposits and other assets of the Unit;
( c ) any monies advanced to it by the Minister;
( d ) any other money receivable or received by the Unit.
Powers of the Unit.
Added by:
XXXI. 2001.4.
36. (1) The Unit may:
( a ) hold accounts with any bank;
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        21
( b ) invest any of its liquid assets in short and medium term
first class securities as approved by the Board;
( c ) acquire, purchase, lease or dispose of any movable or
immovable property required for the conduct of its
business or for any purposes ancillary or incidental to
the performance of its functions under this Act.
(2) For the purpose of carrying out any of its functions under
this Act, the Unit may, with the approval in writing of the Minister,
borrow or raise money in such manner, from such person, body or
authority, and under such terms and conditions as the Minister may
in writing approve.
Advances by the 
Government.
Added by:
XXXI. 2001.4.
37. The Minister may make advances to the Unit of such sums
as the Minister may consider to be required by the Unit for carrying
out any of its functions under this Act, and may make such
advances on such terms and conditions as the Minister may deem
appropriate. Any such advances may be made by the Minister out
of the Consolidated Fund, and without further appropriation other
than this Act, by warrant under his hand authorising the Accountant
General to make such advances.
Estimates and 
expenditure.
Added by:
XXXI. 2001.4.
38. (1) The Director shall, not later than six weeks before the
end of each financial year, submit to the Board estimates of the
income and expenditure of the Unit for the following financial
year:
Provided that the estimates for the first financial year of the
Unit shall be prepared and adopted within such time as the Minister
may by notice in writing to the Unit specify.
(2) In the preparation of such estimates the Unit shall endeavor
to ensure that the total revenues of the Unit are at least sufficient to
meet all sums properly chargeable to its Income and Expenditure
Account, including but without prejudice to the generality of that
expression, depreciation.
(3) The estimates shall be made out in such form and shall
contain such information and such comparisons with previous years
as the Board may direct.
(4) Before the end of each financial year the Board shall
consider and adopt, with or without amendments as the case may
be, the estimates submitted to it for the following financial year.
(5) If in respect of any financial year it is found that the amount
approved by the Board is not sufficient or a need has arisen for
expenditure for a purpose not provided for in the estimates, the
Director may cause supplementary estimates to be prepared and
sent forthwith to the Board for adoption and in any such case the
provisions of this Act applicable to the estimates shall as near as
practicable apply to supplementary estimates.
Determination and 
allocation of 
profits.
Added by:
XXXI. 2001.4.
39. All profits realised by the Unit shall be put to a reserve
fund which shall be used for such purposes as the Unit may deem to
be required to meet the objects of the Unit, including the repayment
of any liabilities.
  22      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
Financial year.
Added by:
XXXI. 2001.4.
40. The financial year of the Unit shall begin on the first day of
January and end on the thirty-first day of December:
Provided that the first financial year shall begin at the date
of commencement of this article and shall end on the thirty-first
day of December of the following year.
Audit.
Added by:
XXXI. 2001.4.
41. The Unit shall keep proper books of account in such
manner as the Minister may from time to time direct. Such accounts
shall be audited by auditors appointed by the Board with the
concurrence of the Minister from among persons qualified to be
appointed as auditors of a company under the law for the time
being in force in Malta, as if the Unit were such a company, and
shall moreover be subject to audit by the Auditor General.
Annual accounts.
Added by:
XXXI. 2001.4.
42. (1) The Board shall, as soon as may be but not later than
three months after the close of each financial year, transmit to the
Minister:
( a ) a copy of the annual accounts certified by the auditors;
( b ) a report on the operations of the Unit during the year.
(2) The report referred to in sub-article (1) shall be laid on the
Table of the House by the Minister not later than six weeks after its
receipt, or where the House is during the period not in session not
later than the second week after the House resumes its sittings.
Exemption from 
taxes.
Added by:
XXXI. 2001.4.
43. The Unit shall be exempted from any liability for the
payment of income tax and duty on documents and transfers under
any law for the time being in force.
       PREVENTION  OF  MONEY  LAUNDERING   [ CAP. 373.        23
FIRST SCHEDULE
(A rticle 2 )
Article 3  ( 1 )   ( a )  of the United Nations Convention
Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances.
( i ) The production, manufacture, extraction, preparation, offering, offering for
sale, distribution, sale, delivery on any terms whatsoever, brokerage,
dispatch, dispatch in transit, transport, importation or exportation of any
narcotic drug or any psychotropic substance contrary to the provisions of the
1961 Convention, the 1961 Convention as amended or the 1971 Convention;
( ii ) The cultivation of opium poppy, coca bush or cannabis plant for the purpose
of the production of narcotic drugs contrary to the provisions of the 1961
Convention and the 1961 Convention as amended;
( iii ) The possession or purchase of any narcotic drug or psychotropic substance
for the purpose of any of the activities enumerated in  ( i )  above;
( iv ) The manufacture, transport or distribution of equipment, materials or of
substances listed in Table I and Table II, knowing that they are to be used in
or for the illicit cultivation, production or manufacture of narcotic drugs, or
psychotropic substances;
( v ) The organization, management or financing of any of the offences
enumerated in  ( i ) ,  ( ii ) ,  ( iii )  or  ( iv )  above.
(A rticle 2 )
•An offence against the law relating to dangerous drugs or narcotics
•Illegal dealing in arms and armaments
•Procuring, or trafficking in men, women or young persons for immoral
purposes
•Dealing in slaves
•Piracy
•Illegal arrest, detention or confinement of a person
•Wilful homicide
•Wilful grevious bodily harm
•Blackmail
•Any crime affecting public trust
•Any of the crimes under articles 197, 204, 205, 208 and 210 of the Criminal
Code, Cap. 9.
•Theft
Amended by:
L.N. 71 of 1999. SECOND SCHEDULE
  24      CAP. 373. ]              PREVENTION  OF  MONEY  LAUNDERING  
•Any crime of fraud under the Criminal Code, Cap. 9.
•Any crime against the Customs Ordinance, Cap. 37.
•Any crime against the Official Secrets Act, Cap. 50.
•Any crime against the Arms Ordinance, Cap. 66.
•Any crime against the Central Bank of Malta Act, Cap. 204.
•Any crime against the Exchange Control Act, Cap. 233.
•Any crime which constitutes a ''corrupt practice" as defined in the Permanent
Commission Against Corruption Act, Cap.326.
