Legal Notices 82 and 83 of 2026 mark a significant evolution in Malta’s AML/CFT framework. Reflecting the EU’s modernised approach to AML enforcement, the two instruments were introduced concurrently to promote harmonised regulatory action. By allowing greater procedural flexibility while maintaining core deterrent standards, the reforms signal a move away from purely punitive enforcement towards encouraging prompt compliance and efficient resolution by regulated persons.
Overview of each Notice
Legal Notice 82 of 2026 amends the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR), while Legal Notice 83 of 2026 introduces parallel amendments to the Centralised Bank Account Register Regulations (CBAR). Although each notice applies to a different regulatory framework, both adopt materially identical enforcement mechanisms. This coordinated approach ensures consistency in how breaches are addressed across the PMLFTR and CBAR regimes.
Settlement Agreements under the Revised Framework
The central feature introduced by the Legal Notices is the formalisation of settlement agreements in respect of administrative penalties. Under the revised framework, the competent authority may agree to a reduced penalty where the subject person unconditionally accepts the findings, undertakes all required remedial measures, together with waiving any right of appeal.
That being said, the legislator has sought to mitigate the risk of abuse inherent in such settlement mechanisms. The law provides important safeguards, including a cap of two (2) settlements per subject person within any two (2)‑year period, applicable at group level where relevant and the authority’s discretion to refuse settlement on public‑interest grounds and the imposition of a cooling‑off period following the execution of a settlement agreement. Together, these measures establish a structured route for resolving non‑compliance while balancing regulatory efficiency with accountability and deterrence.
Transitional Settlement Arrangements
Both Legal Notices also provide for transitional settlement arrangements applicable for a six (6)‑month period from the entry into force of the amendments. During this window, subject persons with a pending appeal against an FIAU administrative penalty, those who notify the FIAU of their intention to appeal, or those who would have been eligible for settlement had the mechanism been available at the time of sanction, may opt to pursue an out‑of‑court settlement.
Any reduction in penalty is capped at fifty per cent (50%) of the original amount and is conditional upon the unconditional acceptance of the FIAU’s findings, immediate completion of all outstanding remedial measures, and the waiver of any further right of judicial challenge. This temporary mechanism offers a defined pathway for the resolution of outstanding enforcement proceedings, warranting careful strategic consideration by affected entities.
Expansion to the Enforcement Framework
Legal Notice 82 further strengthens the AML/CFT enforcement ecosystem through the expansion of the definition of “competent authority”. By extending enforcement involvement beyond the FIAU to include additional public bodies, the amendments reflect an increasingly integrated, multi‑agency approach to financial crime supervision. In this broader context, the role of sector‑specific oversight bodies, including those supervising the property market such as the Property Market Agency, assumes heightened importance, particularly given the recognised money‑laundering risks associated with real estate transactions. This development underscores the importance of coordinated oversight in addressing complex and cross‑sectoral compliance risks.
While largely mirroring the enforcement reforms introduced by Legal Notice 82 of 2026, Legal Notice 83 of 2026 also introduces targeted amendments to the CBAR regime. Notably, it expands the circumstances in which CBAR data may be shared with foreign or supranational bodies performing equivalent functions, subject to adequate confidentiality and data‑protection safeguards. This signals a more facilitative approach to cross‑border information exchange within a controlled legal framework, particularly relevant for entities operating internationally.
Transitional and Practical Implications
Legal Notices 82 and 83 of 2026 recalibrate Malta’s AML/CFT enforcement framework by retaining settlement as a resolution mechanism, including for matters pending appeal, thus enabling regulated persons to conclude proceedings without prolonged litigation where statutory conditions are met. These measures encourage early cooperation, timely remediation and more strategic compliance engagement, while reflecting a broader shift towards a more proportionate and pragmatic enforcement philosophy that maintains regulatory rigour but places greater emphasis on corrective behaviour, procedural efficiency and proactive compliance responses.