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Implementing Article 32: Sanctions Compliance Requirements
August 2026
Issued by the Sanctions Monitoring Board in terms of the National Interest (Enabling Powers) Act Chapter 653 of the Laws of Malta
Effective sanctions compliance is about more than having policies and procedures in place. It is about ensuring that an organisation understands its sanctions risks and has appropriate controls in place to manage them.
The Sanctions Monitoring Board is issuing guidance to help operators better understand the requirements of Article 32 of the National Interest (Enabling Powers) Act and the Board’s expectations in relation to sanctions compliance. The guidance provides practical direction on key areas such as governance, risk assessments, screening measures, escalation procedures, record keeping and reporting obligations.
As sanctions regimes continue to evolve, operators should regularly review their compliance frameworks to ensure that their controls remain effective and proportionate to the nature, size and risk profile of their business. What is appropriate for one organisation may not necessarily be appropriate for another.
This publication is intended to serve as a practical reference point for operators and assess whether their existing controls are capable of identifying, managing and mitigating sanctions risks in a meaningful and effective manner.
Whether you are reviewing your current framework or building upon existing controls, this guidance will help you understand what the Board expects and how those expectations can be translated into practice.
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Judgment of the Court in Case C-81/24 – The inclusion of a consumer on a US sanctions list is not enough to warrant a refusal to open a bank account.
A bank may refuse to open a basic payment account only after a case-by-case assessment of money laundering and terrorist financing risks.
In this case, a Slovenian bank relied on a customer’s inclusion on the US OFAC list, despite not being on EU/UN sanctions, in order to decide to not allow the consumer to open a payment account with basic features. The Court held that EU residents have a right to a basic account. This right can be restricted for the purposes of AML/CFT compliance. Being on an OFAC list alone does not justify refusal. It can, however, be considered as a factor when the bank is conducting its assessment on the consumer to decide whether it is too dangerous to allow the consumer to open a payment account. From that point, the refusal is lawful if the bank cannot adequately manage the assessed risk.
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Updated Commission FAQs
On 22 May 2026, the Commission published updated FAQs on tanker sales (Article 3q) and targeted vessels (Article 3s). On 06 May 2026, the Commission published updated FAQs on the movements of Russian diplomats (Art. 5v, 5w) and on the asset freeze and prohibition on providing funds or economic resources (Council Regulation (EU) No 269/2014).
Please scroll below to view the relevant FAQs.
