On 1 April 2026, Malta published Legal Notice 82 of 2026, amending the Prevention of Money Laundering and Funding of Terrorism Regulations (‘PMLFTR’). The Financial Intelligence Analysis Unit (FIAU) can now enter into settlement agreements in relation to administrative penalties. The same reform package has also introduced a temporary path to out-of-court settlement for certain cases already tied up in appeal proceedings.
Effectively, a subject person facing FIAU action may now be able to resolve a case without taking the matter through the full appeal track. However, the route is not informal, in that the amendments provide that the subject person must unconditionally accept the FIAU’s findings, undertake the required corrective action, and waive appeal rights. If the settlement is not honoured, the benefit can be lost and the full original penalty may again come into play, with court recovery possible.
The new process is also tightly controlled. The FIAU may refuse settlement where it considers that settlement would not be in the public interest, and that no more than two settlement agreements may be entered into with the same subject person within any two-year period. Where entities are part of the same group, group settlements also count towards that limit. There is also a cooling-off concept, so firms cannot quickly resort to the same mechanism after a previous settlement.
LN 82/2026 appears to do more than create a settlement option. The term ‘Anti-Money Laundering and Counter-Terrorism Financing’ (AML/CTF) is now expressly defined, in such a manner that the enforcement net is framed more broadly around obligations arising from the Act, the regulations, and binding guidance, directives or directions.
Regulation 15 now expressly allows the FIAU to direct the means and format through which suspicious transaction reports and replies to information requests are submitted. For firms, that points to more standardised reporting expectations and less room for ad hoc practices.
The amendments also sharpen the perimeter of supervision. A new definition of “immovable property agent”, ties that concept to Malta’s real estate regime, and treats the company as the regulated subject person where multiple agents operate through a corporate vehicle. At the same time, the Property Market Agency is now formally listed as a supervisory authority, while the list of “competent authorities” has been widened to include the Security Service, the Sanctions Monitoring Board and the Internal Audit and Investigations Directorate. In practice, that means more coordinated oversight across sectors and authorities.
Another important development is the FIAU’s wider enforcement toolkit. The new Regulation 23 allows the FIAU to impose administrative measures alongside, or in its stead, a financial penalty. Those measures can include written reprimands, cease-and-desist style directions, compliance orders with deadlines, and restrictions or prohibitions on certain products, services or transactions. Regulation 24, then, serves to formalise prompt communication with the relevant supervisory authority, and the FIAU may recommend further regulatory action, including suspension or revocation of licences or restricting individuals from holding certain functions. In other words, the consequences of non-compliance may now spread well beyond the fine itself.
For ongoing disputes, transitional provisions may be just as important as other permanent changes. The FIAU has officially confirmed that LN 82/2026, together with LN 83/2026, introduces a six-month window for out-of-court settlement in pending appeal proceedings. This option may be available not only where an appeal is already pending, but also in certain cases where the person would otherwise have been eligible for settlement had the framework existed earlier. Any reduction under that temporary route is capped at 50% of the original penalty, and it still requires acceptance of the findings, remedial action and a waiver of further challenge.
Enforcement in Malta’s anti-money laundering framework has become more structured, more transparent and, in some respects, more flexible but only for those ready to cooperate early and fully. LN 82/2026 does not water down AML rules; it changes how breaches can be resolved and gives the FIAU more clearly defined tools to push businesses back into compliance. Firms should now review reporting channels, remediation processes, escalation procedures and any live enforcement cases in light of the new framework.
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Author: Dr Karl Cauchi