Trust and Company Service Providers Face Rule Changes

On the 11^th of July 2025, Malta implemented pivotal regulatory changes through the Trusts and Trustees Act (Register of Beneficial Owners) (Amendment) Regulations 2025, which came into effect in virtue of Legal Notice 133 of 2025. These amendments notably expand the scope of beneficial ownership reporting and tighten compliance requirements for trustees.

The most consequential development introduced by the 2025 amendments is the inclusion of private trustees within the beneficial ownership reporting framework. Private trustees in terms of Article 43A of the Trusts and Trustees Act are defined as individuals who act as trustees by virtue of family ties or long personal connections with the settlor and who must meet specific criteria including non-remuneration and limits on the number of settlors they serve.

Private trustees are now subject to the same obligations as authorised and registered trustees since they must submit a beneficial ownership declaration for each trust they administer, within fourteen (14) days of appointment. This declaration must contain detailed information about every beneficial owner of the trust including names, dates of birth, nationalities, countries of residence and identification details. The trustee must also indicate each person’s role in the trust and, for every beneficiary, the nature and extent of their interest.   For beneficiaries, trustees must also disclose whether the trust instrument suspends the duty to inform beneficiaries of their interests. An important transitional provision introduced by Regulation 8A requires existing private trustees to submit their declarations by not later than 11^th January 2026.

Furthermore, all trustees including private and foreign trustees resident outside the EU must notify the Malta Financial Services Authority (the “MFSA”) of any changes to beneficial ownership within fourteen (14) days and must submit an annual confirmation of the accuracy of the data reported, reflecting continuous and updated transparency. Failure to comply with the reporting requirements carries significant reputational and financial risks since the MFSA is empowered through Regulation 8 to impose administrative penalties of up to €150,000 for non-compliance. Regulation 6 extends access to beneficial ownership information to all national competent authorities under the Prevention of Money Laundering and Funding of Terrorism Regulations (“PMLFTR”), aligning Malta with the transparency requirements emanating from Article 74 of Directive (EU) 2024/1640 (AMLD6).

Trust and Company Service Providers (“TCSPs”) who often act as authorized trustees or facilitators for trust arrangements are directly affected by these changes. TCSPs must ensure that all trustees under their management including private trustees are aware of and comply with the new beneficial ownership declaration and reporting deadlines. TCSPs should also assist in setting up trustee accounts on the MFSA’s Trusts Ultimate Beneficial Ownership Register (“TUBOR”) portal and keep records to verify and update beneficial ownership information as required. TCSPs should proactively support private trustees through the transitional phase to achieve compliance.

Overall, the 2025 beneficial ownership reporting amendments enhance Malta’s commitment to financial transparency and the fight against illicit financial activities by regulating private trustees.