€10,000 cash cap on property transactions becomes law

Cash transactions of over €10,000 involving property and valuable items have been outlawed under a legal notice under the Prevention of Money Laundering Act.

In an attempt to clamp down on money laundering, Malta has published a legal notice, bringing into law capping the amount of cash that can be used in transactions involving property, antiques, jewellery, precious metals, precious stones, pearls, motor vehicles, seacraft, and works of art. The law makes it a criminal offence to carry out cash transactions in excess of this amount.

Large transactions under the guise of property and luxury goods purchases have become a convenient vehicle for laundering the proceeds of crime.

The legal notice implements measures first announced in the 2020 Budget. 

Any person found guilty of breaching the new regulations will be liable to a fine of not less than 40% of the sum of money they paid, received or transacted in cash.

In January it had been reported that Malta was going to introduce the €10,000 cash limit after being pressured by Moneyval, the Council of Europe’s body which is set to review the nation’s anti-money-laundering regime this year.

A negative result in the review could see Malta grey-listed, with serious repercussions on Malta’s appeal as a global financial centre.