Regulatory Alerts2020-06-10
Added · Updated
Sectoral Risk Assessment & Action Plan Key Results on Legal Entities, Legal Arrangements and Voluntary Organisations
The MFSA requires trustees and other fiduciaries to review the Key Results document on legal entities, legal arrangements, and voluntary organisations to identify money laundering and terrorist financing risks. Trustees must incorporate these findings into their internal and client risk assessments, specifically addressing threats such as tax evasion through letter of wishes or bribery and corruption involving politically exposed persons. The regulator expects fiduciaries to implement proportionate risk mitigating measures, which may include conducting gap analyses, enhancing onboarding checks for red flags, exiting relationships, or reporting structures where regulatory obligations require.