On 14 November 2025, the new National Interest (Enabling Powers) Act (the “NIA”) was published in the Government Gazette, thereby bringing the proposed Bill into force. The Act introduces a comprehensive suite of reforms aimed at modernising and reinforcing Malta’s domestic sanctions framework, while ensuring conformity with recent developments in EU restrictive-measures legislation.
Alignment with EU Restrictive-Measures Framework
The Act transposes into Maltese law a number of EU legislative instruments central to the Union’s sanctions enforcement regime. These include:
- Directive (EU) 2024/1226, establishing definitions of criminal offences and penalties for breaches of EU restrictive measures and amending Directive (EU) 2018/1673;
- Regulation (EU) 2024/886, governing instant euro credit transfers and introducing consequential amendments to Regulation (EU) 2021/1230 and Directive 98/26/EC;
- Regulation (EU) 2023/1113, imposing enhanced information requirements on transfers of funds and crypto-assets and amending Directive (EU) 2015/849.
The incorporation of these instruments reflects Malta’s ongoing obligation to ensure that its domestic legal framework supports the effective implementation of EU restrictive measures and related financial-transparency standards.
The Act includes a clear split between criminal offences and administrative failures, with a €10,000 threshold and linked series rule and special out-of-court settlement procedures in instances where criminal proceedings for breaches have been instituted and where they have not as yet been initiated.
Institutional and Procedural Reforms
The Act also effects substantial structural reforms within Malta’s national sanctions regime. In particular, it expands the statutory remit of the Sanctions Monitoring Board (“SMB”), expressly empowering it to monitor and evaluate compliance with restrictive measures, impose administrative penalties, and conduct inspections, including onsite and offsite examinations in accordance with the internal policies and procedures of the Board, and refer to the relevant authorities for action, assistance or information.
Establishment of the Sanctions Appeals Tribunal and Sanctions Registry
Among its most significant innovations, the Act establishes a Sanctions Appeals Tribunal, endowed with jurisdiction to hear and determine appeals from decisions of the SMB, and a Registry of the Tribunal, which will made accessible to the public. This complements the introduced opportunity for persons, entities, or bodies to request, in writing, the Board to give a ruling on whether a proposed immediate action is prohibited by any restrictive measures or regulations.
Appointment of a Temporary Administrator
Under Article 34, the Board shall have the right to appoint a temporary administrator to a legal person when EU restrictive measures or any restrictive measure adopted by a UN Resolution or domestic restrictive measures are implemented in Malta in respect of the same legal person, the owner or controlling person thereof and where temporary administration is necessary to avoid adverse social, economic, ecological or other significant consequences for the public or Malta.
Obligations of Subject Persons
Article 32 of the Act outlines the specific obligations of persons and entities, which Schedule I of the NIA identifies as ‘Any natural or legal person conducting a relevant activity or relevant financial business as defined in accordance with the Prevention of Money Laundering and Funding of Terrorism Regulations.’ Furthermore, it stipulates that subject persons are to take appropriate steps, proportionate to the nature and size of their business, to identify and assess the risks of violations of restrictive measures and proliferation financing and circumvention thereof that arise out of their activities or business, and emphasizes the obligation of record-keeping to demonstrate compliance with the Act.
For assistance with reviewing your sanctions internal policies in line with your obligations under the NIA, contact Shoulder Compliance on charles.cassar@shoulder.mt or info@shoulder.mt
