Compliance officers and money laundering reporting officers (MLRO) hold important roles within companies operating in the highly-regulated financial services industry in Malta. The persons occupying these positions report directly to the directors of the company and are responsible for the implementation and management of compliance functions and AML/CFT processes.
In both cases, Maltese license holders must conduct all the necessary due diligence checks and competence assessment before formally informing the MFSA about the individuals they intend to propose for these roles. In certain cases, individuals assuming the role of compliance officer may not carry out the duties of MLRO as well, and vice-versa.
After the MFSA is satisfied that the individual nominated for the post of compliance officer or MLRO is of an adequate level of integrity and can competently execute the role, the authority will request that person to confirm in writing that they understand and accept the responsibilities associated with the job.
A compliance officer is responsible for seeing that an organisation fulfils its compliance obligations and bringing to the attention of the directors any breaches or risks thereof. These obligations include all the legal and financial regulations that the company is expected to follow while in operation.
In order to fulfil their duties, a compliance officer is expected to demonstrate independence of judgement and to exercise proper day-to-day control over the activities carried out by the company.
Besides their supervisory role, compliance officers are required to liaise with the MFSA and ensure that any information passed on to the authority is correct and accurate.
Money laundering reporting officers
The MLRO is the person responsible for the management and oversight of all aspects of a licence holder’s anti-money laundering (AML) and combatting financial terrorism (CFT) activities.
Apart from passing due diligence checks and being approved by the MFSA, the person proposed for this role must be familiar with the Prevention of Money Laundering Act (1994) and satisfy the requirements set out in the Implementing Procedures issued by the Financial Intelligence Analysis Unit (FIAU).
An MLRO is bound by law to report any suspicious transactions directly to the FIAU and see that a system is set up within the organisation whereby staff may flag suspicious and lodge similar reports without hindrance.
The registered person must also ensure that proper Customer Due Diligence procedures are in place and that copies of identification and other documents obtained from all customers are authenticated and stored safely.
Malta compliance officer and MLRO services
Bennetti Consulting assists Maltese companies in finding competent and qualified individuals who can fulfil the requirements of Compliance Officer and MLRO within their organisation. The founder of the practice, Dr Clint Bennetti, has occupied these roles at several investment funds, asset managers, company services providers, and other regulated entities offering financial services, with the approval of the MFSA.
Contact us today to request more information and set up a meeting.