Key Changes Introduced by Legal Notice 252 of 2026
Malta has continued the reform of its beneficial ownership framework with the publication of
Legal Notice 252 of 2026 on 22 September 2026. The Legal Notice follows the amendments introduced earlier this year in relation to companies and commercial partnerships through
Legal Notice 184 of 2026, this time addressing the beneficial ownership regime applicable specifically to
trusts and trustees.
The Trusts and Trustees Act (Register of Beneficial Owners) (Amendment) Regulations, 2026 amend S.L. 331.10 and form part of Malta's implementation of Directive (EU) 2024/1640, commonly referred to as the Sixth Anti-Money Laundering Directive.
The amendments focus principally on the identification of persons exercising control over trusts, access to beneficial ownership information, the reliability of information maintained by the Malta Financial Services Authority and the enforcement measures applicable where the regulatory requirements are not observed.
Who is a Beneficial Owner?
A central aspect of the amendments concerns the determination of who qualifies as a beneficial owner of a trust. The definition encompasses the settlor, trustee, protector (where applicable), beneficiaries or class of beneficiaries, as well as any other natural person who ultimately exercises control over the trust.
Determining beneficial ownership therefore requires more than identifying the persons formally named in the trust structure. Particular consideration must also be given to individuals who have effective influence over significant decisions taken by the trustee.
This includes a natural person whose consent is required, or whose directions are binding, in respect of material matters such as:
- amendments to the trust instrument;
changes to beneficiaries or their entitlements;
- the appointment or removal of trustees or protectors;
- the acceptance of an additional settlor;
- a change in the proper law governing the trust;
- the transfer or assignment of all or substantially all of the trust assets; and
- the termination or revocation of the trust.
Accordingly, the revised framework places greater emphasis on the substance of control rather than merely the title or formal capacity held by an individual within the trust arrangement.
The amendments also introduce important changes to the manner in which beneficial ownership information held by the MFSA may be accessed.
Specified authorities are afforded immediate, direct and unrestricted access, free of charge and without the trust, its trustees or its beneficial owners being alerted. The categories entitled to such access include relevant competent and tax authorities and, where applicable, EU bodies such as the Authority for Anti-Money Laundering and Countering the Financing of Terrorism ("AMLA"), the European Public Prosecutor's Office, OLAF, Europol and Eurojust.
In parallel, obliged entities may obtain timely access where beneficial ownership information is required for the performance of customer due diligence obligations.
The revised framework also caters for persons who can establish a legitimate interest linked to the prevention or combating of money laundering, associated predicate offences or terrorist financing. Depending on the circumstances, this may extend to certain journalists, civil society organisations and persons contemplating transactions involving a trust or its trustees.
Access on the basis of legitimate interest remains subject to the applicable regulatory requirements and the MFSA may request information or documentation necessary to establish that such an interest exists.
Safeguards for Beneficial Owners
The move towards wider accessibility is accompanied by safeguards for situations in which disclosure could create a serious risk for the individual concerned.
The MFSA may, following an assessment of the particular circumstances, restrict access to beneficial ownership information where disclosure would expose a beneficial owner to a disproportionate risk of fraud, kidnapping, blackmail, extortion, harassment, violence or intimidation.
Protection may likewise be available where the beneficial owner is a minor or otherwise legally incapable.
These exceptions are not intended to operate automatically. They require an individual assessment and appropriate documentary support. The revised regime therefore seeks to increase transparency while retaining mechanisms for protecting beneficial owners in exceptional circumstances.
Keeping Information Accurate
L.N. 252 of 2026 also strengthens the mechanisms available to ensure that information recorded in relation to trusts remains adequate, accurate and current.
Where the MFSA has reasonable grounds to question the accuracy or currency of information relating to an express trust, it may seek clarification from the trustee and use its statutory powers to establish the correct beneficial ownership position.
The framework is further supported by discrepancy reporting obligations. Where competent authorities and other persons specified by the Regulations identify inconsistencies between information recorded on the Register and beneficial ownership information available to them, those discrepancies must be brought to the MFSA's attention.
The practical effect is that beneficial ownership compliance should be approached as a continuing process. Trustees should not regard the submission of information as the end of their responsibilities but should ensure that the information continues to reflect the actual ownership and control arrangements of the trust.
Penalties for Non-Compliance
The enforcement provisions accompanying the amendments underline the importance placed on the integrity of the beneficial ownership regime.
A failure by a trustee to comply with the Regulations may be subject to an administrative penalty of up to €150,000 in respect of each breach or failure to comply.
An administrative penalty of up to €100,000 may apply in the circumstances specified by the Regulations where the MFSA is required to update beneficial ownership information itself following the reporting of a discrepancy.
At the same time, trustees retain an important safeguard. Liability will not arise where the trustee can demonstrate that all due diligence was exercised to comply with the Regulations and that the default was not attributable to negligence or fault on the part of the trustee or its officers.
The amendments also distinguish more serious conduct involving information or documentation that is knowingly or recklessly inaccurate, false or misleading. Apart from potential administrative consequences, such conduct may constitute a criminal offence. Upon conviction, this may result in a fine of up to €466,000, imprisonment for a term of up to four years, or both.
EU Register Interconnection
The reforms should also be considered within the wider development of beneficial ownership transparency at EU level.
Under the amended framework, the beneficial ownership register maintained by the MFSA is to be interconnected with the corresponding central registers of other EU Member States through the European Central Platform.
The interconnection supports greater cross-border accessibility of beneficial ownership information and reflects the broader direction of the EU's anti-money laundering framework towards increased cooperation and information sharing between Member States.
Practical Considerations for Trustees
For trustees and professionals involved in trust administration, the amendments provide a useful opportunity to review existing beneficial ownership arrangements and internal compliance procedures.
In particular, trustees should consider whether individuals who do not occupy one of the conventional roles within a trust nevertheless possess consent, veto or binding direction rights capable of amounting to ultimate control. Trust documentation and beneficial ownership records should also be reviewed periodically to ensure that the information held remains consistent with the trust's actual arrangements.
Internal procedures should further be capable of responding appropriately to regulatory enquiries and discrepancies concerning registered information.
The increased enforcement consequences make the maintenance of accurate records and effective compliance processes particularly important.
Legal Notice 252 of 2026 represents the latest stage in Malta's ongoing reform of its beneficial ownership framework.
Following the changes introduced for companies and commercial partnerships earlier in 2026, the new amendments extend the focus to trusts and trustees, strengthening the rules surrounding ultimate control, access to information, data accuracy and enforcement.
For trustees, the key consideration is increasingly one of substance: identifying not only the persons formally connected with the trust, but also those who are ultimately capable of influencing material decisions. Maintaining an accurate picture of that control and ensuring that it continues to be reflected in the information provided to the MFSA, will remain an important element of ongoing compliance.
This article has been authored by Trainee Advisor - Legal, Maria Darrelle Bartolo as the primary author and Senior Advisor - Legal, Dr. Francesca Anastasi as the secondary author.
