Sanctions are imposed in order to bring about change or pressure on a country or Government without the use of armed force. They may target governments of third countries, non-state entities and individuals. Sanctions include: (i) Arms embargoes; (ii) Trade Restrictions such as import and export bans; (iii) Financial Restrictions and (iv) Restrictions on Movement such as visa or travel bans.
Sanctions in Malta are governed by the National Interest (Enabling Powers) Act, Cap 365 of the Laws of Malta and their application is monitored by the Sanctions Monitoring Board.
All sanctions issued by the European Union and the United Nations Security Council are directly applicable under the National Interest (Enabling Powers) Act, Cap 365 under the Laws of Malta. Any legal or natural person conducting a relevant activity or relevant financial business as defined in the Prevention of Money Laundering and Funding of Terrorism Regulations is obliged to adhere to applicable sanctions and carry out the necessary check to ensure that sanctions are always complied with. Should any situation be encountered which is in violation of sanctions, whether directly or indirectly, there is an obligation to stop any transaction from going through, freeze any assets and inform the SMB.
