Malta: Punishment for Unlicensed Remittance Services

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Malta: Punishment for Unlicensed Remittance Services

The Malta Financial Services Authority has recently penalised MPM Capital Investments and its Directors for the unlicensed conduct of regulated businesses regarding monetary remittance. Electronic Money Institutions (EMI) are one of the fastest-growing sectors in the financial market. Since many international businesses found themselves difficult to open and maintain bank accounts for their offshore legal entities; EMIs are quickly filling the gap in the market. Many jurisdictions have started to offer EMI licenses. Among them are Singapore, the UK, and Cyprus. The business of electronic money transfers is attractive as the demand for new offshore bank accounts is soaring. However, money remittances are prone to the risk of money laundering. Therefore, several financial regulators have imposed licensing regimes on all electronic money transfers. However, some individuals are always trying to get around them.

Eltoma Corporate Services (ECS) is providing AML/KYC and legislation reporting services for small financial firms in Cyprus, the UK, Hong Kong and Singapore. Outsourcing of AML/KYC check allows the small financial firms to save money as AML compliance legislation is vast and prone to frequent changes. Instead of having its staff fully dedicated to AML compliance, the firm can engage ECS and save up to 70% of the compliance cost.