At the February 2022 Plenary the FATF made the initial determination that “Malta has substantially completed its action plan.” In June 2021 Malta was placed on the FATF grey list – the list of the countries under increased monitoring by the FATF. In its February 2022 plenary the FATF noted that Malta has made the following key reforms: […]

Malta’s Financial Intelligence Analysis Unit (FIAU) has clarified the procedure for establishing the identity of the ultimate beneficial owner where the shares of a corporate customer are owned by a trust or foundation. The guidance comes in a revised version of its implementing procedures, published on 18 October to incorporate recent legislative changes. Some of […]

The European Commission has approved Malta’s recovery and resilience plan, which includes measures to curb aggressive tax planning practices. As provided in the annex to the Proposal for a Council Implementing Decision on the approval, the measures include the following: Reform C6-R9: Aggressive Tax Planning (ATP) – Code of Conduct Group The objective of this […]

Malta last week presented the Financial Action Task Force (FATF) with an action plan to get off the regulator’s grey list of jurisdictions, according to the Times of Malta in a report today (13 September). The government presented the plan to the global watchdog during a virtual meeting on Thursday, it said. “It’s about concretely […]

The European Commission (EC) has proposed the creation of an EU-wide anti-money laundering authority (AMLA) with powers to directly supervise the highest-risk cross-border financial firms. According to Reuters, non-compliant firms could risk penalties up to EUR10 million or 10 per cent of their annual turnover. The AMLA would aim to launch in 2024. The EC […]

The European Parliament issued a release on 20 May 2021 announcing the approval of a program to help tax authorities fight tax evasion. Parliament greenlights EUR 270 million programme to help tax authorities fight tax dodging MEPs approved the regulation establishing the Fiscalis programme running from 2021-2027, which will provide financial resources to national tax […]

On 12 May 2021, the General Court of the European Union issued a judgment annulling the European Commission’s 2017 decision that Luxembourg granted illegal State aid (a selective advantage) to Amazon that had amounted to around EUR 250 million. The decision was the result of an investigation launched in 2014 into a tax ruling provided […]

Malta has published Legal Notice No. 198 of 2021, which contains the Relief of Double Taxation between Malta and Switzerland. The Legal Notice provides for the ratification of the amending protocol to the 2011 income tax treaty with Switzerland, which was signed on 16 July 2020. The protocol is the first to amend the treaty […]

The Budget Measures Implementation Act, 2021, published on the 16 of April, includes a new enabling provision (article 51A) that empowers the Minister for Finance to introduce detailed transfer pricing rules. As a result of this provision, the introduction of such rules in Malta appears imminent. This comes as no surprise and follows on the […]

US Treasury financial regulator FinCEN has begun a consultation on implementing the strict new beneficial ownership reporting rules established by the Corporate Transparency Act (CTA). The Financial Crimes Enforcement Network released the notice of proposed rulemaking to give the public its first opportunity to comment on the beneficial ownership disclosure requirements. It said in the […]