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On the 11th of July 2025, the Trusts and Trustees Act (Register of Beneficial Owners) (Amendment) Regulations, 2025 (the "Amendment Regulations") came into force transposing in part, Article 74 of Directive (EU) 2024/1640 of the European Parliament and of the Council of 31 May 2024 on the mechanisms to be put in place by Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Directive (EU) 2019/1937 and therefore, essentially amending the Trusts and Trustees Act (Register of Beneficial Owners) Regulations (S.L. 331.10) (the "Principal Regulations").
The most notable amendment implemented by virtue of the Amendment Regulations is the new obligation incumbent on private trustees to now submit to the Malta Financial Services Authority (the "MFSA"), a declaration of beneficial ownership in respect of the trust of which they are acting as private trustee, within 14 days of their acceptance to act as same. Previously, private trustees fell out of scope of beneficial owner reporting obligations which were incumbent on authorised and registered trustees. The declaration of beneficial ownership shall, apart from the name of the trust, include the following information in respect of each beneficial owner:
- the full name and surname;
- the day, month and year of birth;
- the nationality or nationalities;
- country of residence
- an official identification document number and type of document and country of issue;
- the role of the beneficial owner i.e whether such person is settlor or trustee or beneficiary etc;
- if a beneficiary, the nature and extent of benefit and, where applicable, an indication as to whether the trust instrument includes any suspension of the trustees' duty to inform the beneficiary of his interest.
These changes have brought private trustees within the scope of the Principal Regulations which also oblige any trustee who is bound to report beneficial owner information to the MFSA, to notify the MFSA of any changes in the beneficial owners of a trust within 14 days from that change and submit an annual declaration confirming that there have been no changes to the beneficial ownership of a particular trust.
With respect to private trustees who have been acting as such prior to the coming into force of these Amendment Regulations and therefore, prior to the 11th of July 2025, they have been given 6 months from such date to submit the declaration of beneficial ownership to the MFSA.
Private trustees who fail to comply with the Principal Regulations which they have now become subject to by virtue of the Amendment Regulations, may be exposed to an administrative penalty imposed by the MFSA which shall not exceed EUR 150,000.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
