On 25 July 2025, the Sanctions Monitoring Board (SMB) published a draft Bill proposing key amendments to the National Interest (Enabling Powers) Act (NIA). This draft seeks to enhance Malta’s sanctions regime by incorporating new EU legislative requirements and reinforcing the SMB’s operational framework.
Incorporation of EU Legislative Requirements
- Directive (EU) 2024/1226: The draft Bill aims to transpose this directive into national law. The directive addresses the definition of criminal offences and penalties related to breaches of EU restrictive measures, and also amends Directive (EU) 2018/1673. It is part of a broader effort to ensure cohesive alignment with evolving EU sanctions law.
- Regulation (EU) 2024/886: The Bill would introduce changes affecting instant credit transfers in euro, as per this March 2024 regulation, along with updates to Regulation (EU) 2021/1230 and Directive 98/26/EC.
- Regulation (EU) 2023/1113: It also brings into Maltese law provisions requiring information accompanying transfers of funds and certain crypto-assets, amending Directive (EU) 2015/849.
Enhancement of Malta’s National Sanctions Framework
These proposed amendments also aim to modernise and strengthen Malta’s national sanctions framework. In this regard, the Bill outlines the SMB’s functions, which include supervising compliance with sanctions, issuing freezing orders and authorising access to frozen funds for essential expenses, recommending designations or de-designations, imposing administrative penalties and carrying out compliance inspections, as well as providing rulings on the application of sanctions, with such rulings being subject to appeal before the newly established Sanctions Implementation Appeals Tribunal.
Ongoing Consultations
The SMB is actively consulting with a broad spectrum of stakeholders on the proposed legislative amendments to ensure that Malta’s domestic framework is both operationally effective and reflective of established international norms.
