Third-Party Managed Funds require MLRO

David Joseph Borg | Published on 08 Mar 2013

Chetcuti Cauchi Advocates CCMalta default banner

Malta funds managed by third-party managers must nominate a Money Laundering Reporting Officer (MLRO) by 30th April 2013 in order to comply with the Prevention of Money Laundering & Terrorist Financing Regulations (PMLFTR). Funds with no physical operational structure in Malta may abide by this requirement through outsourcing arrangements with their fund administrator.

In terms of the PMLFTR, Maltese investment funds managed by third-party managers now qualify as ‘subject persons’ and thus are bound to appoint an MLRO by 30th April 2013. This requirement is a result of the broader definition given to the term ‘marketing its units or shares’, which now incorporates situations where third parties place units or shares with investors on behalf of the collective investment scheme.

Furthermore, Part 1 of the PMLFTR Implementing Procedures allows externally-managed investment funds to outsource their AML obligations to their fund administrator. The outsourcing has to be done via an outsourcing agreement or else incorporated in the fund administration agreement, and is only permissible if made to a Maltese recognized fund administrator or to fund administrators situated in other EEA member states or in reputable jurisdictions.

Request More Information

Please send me legal and other updates

Key Contacts
Related Industry Groups
Related Practices
Related Opportunities