Modification or Removal of a condition with respect to property transferred by the Government

Recently, Legal Notice 370 of 2020 had been published, entitled “Modification to, or Removal of, a Condition or Conditions imposed in a Contract of a Property Transferred by the Government, the Lands Authority or Ecclesiastical Entities through a Sale or Emphyteusis Regulations, 2020”

This Legal Notice should apply to any person who has a title of purchase by virtue of a public deed, or emphyteusis on property that would have been passed to the applicant by the Government or the Authority, or by an Ecclesiastical Entity (that subsequently passed the title to the Government), who  may, save as provided in the other provisions of this Legal Notice, ask the Authority to modify or remove a condition/s, imposed in the original contract.  This Legal Notice should apply only in case where the condition/s imposed in the original contract limited the amount of residences and, or garages, that could be built and where the applicant is requesting an increase in the amount of residences/garages that could have been built under the original contract.

There are three eligibility criteria:

1. That the applicant is an EU citizen;
2. That the applicant is recognised by the Lands Authority as an owner or emphyteuta of the land or building, as the case may be;
3. In the case of an emphyteusis, prove that there were no arrears payments of ground rent due to the Authority on the property in respect of which the application in being submitted pursuant to this Legal Notice.

The value of the modification/removal of condition in the original contract of sale or emphyteusis should be established by a perit/i appointed by the Lands Authority, which estimate shall be in line with article 79 of the Government Lands Act.

Any modification to, or removal of, a condition/s, in the original contract should be made by a public contract, following the approval of the Board of Governors of the Lands Authority and in accordance with the conditions imposed by the Board. 

Extension of Commercial Emphyteutical Concessions

The Ministry for Transport, Infrastructure and Capital Projects, has published Legal Notice 369 of 2020 entitled “Extension of Temporary Emphyteusis in a Contract for a Commercial Premises transferred from the Government, the Lands Authority or Ecclesiastical Entities by title of emphyteusis Regulations, 2020”.

This legal notice applies to any natural or legal person who holds a title of temporary emphyteusis on  a property transferred to the applicant from the Government, the Lands Authority or an Ecclesiatical entity (which subsequently passed on the title to the Government) for commercial purposes and that the term will expire after the 31 August 2025. In this case, the emphyteuta may request the Lands Authority to rescind the contract and to grant a new contract holding a title of temporary empyhteusis, which term starts to run from the date of the new contract and this until the terms of the concession is in force, with the proviso that the term of the new concession shall be equivalent to that in force and provided further that where the term of the concession in force is greater than sixty five years, the term of the new concession shall be equivalent to 65 years.

The applicant emphyteuta for the extension should need to prove, through a detailed business plan, that he needs the land for a commercial project thereby satisfying the Authority of the benefit of the project for the national economy and that it will generate adequate employment.

The eligibility criteria are the following:

1. The applicant should be recognised by the Authority as the emphyteuta of the land/building;
2. The concession in force should not have as its subject the execution of works, the supply of goods or the supply of services, which before the concession, were in the hands of the State before it was granted to the applicant;
3. There are no arrears on ground rent payments.

Every public deed of the extension of the emphyteusis done in terms of this Legal Notice should be subject to the approval of the House of Representatives after a special resolution of the House in terms of article 31(c) of the Government Lands Act, Chapter 573 of the Laws of Malta.

Applications can be accepted from the 5th October 2020.

FIAU publishes revised version of Implementing Procedures – Part II for the Virtual Financial Asset Sector

On 18 September 2020 the Financial Intelligence Analysis Unit (the “FIAU”) published a revised version of the Implementing Procedures – Part II on the ‘Application of Anti-Money Laundering and Countering the Funding of Terrorism Obligations to the Virtual Financial Assets Sector’(the ‘VFA Procedures’).

The newly introduced changes relate to:

• The submission of Suspicious Transaction Reports (‘STRs’):-

Following amendments to the ‘Prevention of Money Laundering and Funding of Terrorism Regulations’ (Subsidiary Legislation 373.01 of the Laws of Malta), STRs should be promptly submitted to the FIAU.  Save for the exceptions as provided in the ‘Implementing Procedures – Part I’, STRs should be submitted on the same day when the Money Laundering Reporting Officer knows or suspects money laundering or funding of terrorism; and

• The red flags associated with the Virtual Financial Asset Sector:-

The FIAU encourages subject persons in the Virtual Financial Asset Sector to familiarise themselves with the FATF’s report on ‘Virtual Assets – Red Flag Indicators of Money Laundering and Terrorist Financing’ issued on September 2020 (the ‘Report’), as well as any updates and related documents.  The Report contains a non-exhaustive list of red flag indicators relating amongst others, to transactions, source of funds or wealth, and geographical risks.  The Report should assist the detection of unusual transactions, activities or behaviour by subject persons working in the Virtual Financial Asset Sector.

For more information kindly contact us on info@gmxlaw.com .

Link to the revised VFA Procedures:

FIAU publishes Revision Version of the Implementing Procedures – Part 1

Following the conclusions of Malta’s Mutual Evaluation Report, the Financial Intelligence Analysis Unit (the “FIAU”), published a revised version of the Implementing Procedures – Part 1 (the “Procedures”) on 15 September 2020.

The newly introduced amendments are expected to expedite both the internal and external reporting procedures of subject persons.  Employees of subject persons who become aware of any information which in their opinion gives rise to knowledge or suspicion of money laundering or funding of terrorism (“ML/FT”), should start filing an internal report with the Money Laundering Reporting Officer (the “MLRO”) by not later than the next working day. 

Subsequently, Suspicious Transaction Reports (“STRs”) should start being submitted to the FIAU on the same day as when the MLRO knows or suspects ML/FT, save for exceptional circumstances as provided in the Procedures. 

The above-mentioned new time frames shall be complimented by a possible delegation of the MLRO’s functions to employees under his/her supervision.  In addition, the Procedures reiterate the need to equip the MLRO with the necessary resources to be able to effectively carry out his role.

The Procedures are issued by the FIAU to assist subject persons in fulfilling their obligations under the ‘Prevention of Money Laundering and Funding of Terrorism Regulations’ (Subsidiary Legislation 373.01 of the Laws of Malta).

For more information kindly contact us on info@gmxlaw.com .

Link to the revised Procedures: