Amendments to Beneficial Ownership Reporting Requirements for Trustees under the Trusts and Trustees Act

The Trusts and Trustees Act (Register of Beneficial Owners) (Amendment) Regulations, 2025 (the “Amending Regulations”) came into effect on 11 July 2025, following their publication under Legal Notice 133 of 2025. These Regulations introduce a number of important changes to the existing legal framework and are particularly relevant to trustees authorised under Article 43 of the Act; trustees registered under Article 43B; individuals acting as private trustees in terms of Article 43A; and foreign trustees who are already reporting beneficial ownership information on the Trusts Ultimate Beneficial Ownership Register (“TUBOR”) under Regulation 3A.

A key development introduced by the Amending Regulations is the inclusion of private trustees within the scope of the beneficial ownership reporting framework. In terms of Article 43A of the Act, a private trustee is an individual who agrees to act as trustee either because he is related to the settlor, by consanguinity or affinity in the direct line up to any degree or in the collateral line up to the fourth degree inclusively, or because he has known the settlor for at least ten years. The individual must not be remunerated, whether directly or indirectly (except as permitted by MFSA rules), must not hold themselves out to the public as a trustee, and must not act habitually in relation to more than five settlors at any one time.

Prior to these amendments, private trustees were excluded from the beneficial ownership reporting regime. However, with the entry into force of the Amending Regulations, private trustees are now required to submit a declaration of beneficial ownership in respect of each trust they administer. In the case of new appointments, the declaration must be submitted to the Malta Financial Services Authority (“MFSA”) within fourteen days (14) of acceptance. The declaration must include specified details for each beneficial owner of the trust, including full name, date of birth, nationality or nationalities, country of residence, identification document type and number (including country of issue), the role of the individual (e.g., settlor, trustee, beneficiary), and, in the case of a beneficiary, the nature and extent of their interest. Where applicable, the trustee must also state whether the trust instrument includes a suspension of the trustee’s duty to inform the beneficiary of their interest.

For private trustees who had already been acting in such capacity prior to 11 July 2025, a six-month transitional period has been granted. Accordingly, declarations for existing trusts must be submitted to the MFSA by no later than 11 January 2026.

In addition to the initial declaration, all trustees now within scope of the amended Regulations are required to notify the MFSA of any changes to the beneficial ownership information within fourteen days from the date the change is recorded. Amendments have also been made to Regulation 5(2) of the principal regulations, whereby the obligation to submit an annual declaration of beneficial ownership has been extended not only to private trustees, but also to foreign trustees whose place of establishment or residence is outside the European Union and who are already reporting beneficial ownership information on TUBOR when in scope of Regulation 3A.

The Amending Regulations further strengthen the MFSA’s supervisory and enforcement powers. Regulation 8 extends the Authority’s ability to impose administrative penalties on both private trustees and foreign trustees falling within the scope of Regulation 3A. Non-compliance with the reporting obligations may result in an administrative penalty of up to €150,000.

Another significant development is the expansion of access to beneficial ownership information. In line with Directive (EU) 2024/1640 (“AMLD6”), the Regulations now allow access to such information by all national competent authorities, as defined under the Prevention of Money Laundering and Funding of Terrorism Regulations (“PMLFTR”). This amendment enhances transparency and reinforces Malta’s alignment with its EU-level anti-money laundering obligations.

Trustees subject to these new requirements are strongly encouraged to review the Amending Regulations in detail and take any necessary steps to ensure full compliance. Further changes are anticipated in the coming months as Malta continues to transpose and implement the wider provisions of AMLD6 and related EU instruments.