The cap is intended to limit the amount of cash exchanging hands – an easy method of money laundering preferred by criminals.

Money laundering has a very dark side and often comes from illegal activities such as organised crime and human trafficking.

The cap on cash transactions is the result of the Moneyval report which noted Malta had a significant “shadow economy”. That’s fancy talk to say undeclared, possibly shady business.

The international watchdog suggested Malta would do something about it, and here we are.

FIAU will be enforcing this new law, and you’d better pay attention, cause it comes with some serious penalties!

Anyone who breaches the cap will in fact be committing a criminal offence, and if found guilty, will be liable to a fine of not less than 40% of the amount paid or received in cash, in excess of €9,999.99. Yes, the law holds both sides of the transaction responsible!

The FIAU is currently setting up a new section with a team of officers specifically for this purpose.

The regulations empower the FIAU to ask anyone for information as may be required to ensure compliance. The FIAU has also been given the power to carry out on-site examinations for the same reasons.

Most EU member states already have a limit on cash payments ranging from as high as €15,000 in Croatia to as low as €500 in Greece.

Payments and other transactions of €10,000 or more can still be made by means of any other legitimate means of payment such as by cheque, banker’s draft, electronic transfer, and credit cards.

How do you feel this legislation will support the fight against financial crime?