Asteria Advisory

Category: News

  • Sanctioned Russian Oligarch wins right to use yacht on the French Riviera

    A sanctioned Russian oligarch has won the right to use his yacht on the French Riviera. Rather, he has successfully challenged French customs due to a number of errors made in the procedure when they boarded the yacht.

    Originally published in 2022, this article discusses the legal complexities around asset control and EU sanctions. As of 2025, such cases remain highly relevant in the evolving landscape of international law and yacht management.

    The EU sanctions apply across EU member states. French customs authorities are reported to have failed to follow the correct procedures. The court ordered the release of the yacht.

    Read the article here.

    A superyacht lies at anchor. Image taken from stock - (C) Shutterstock
    A superyacht – image from stock.

    Legal professionals from different parts of the world have argued that individuals facing such sanctions should succeed in these challenges. Assets are being seized without due process of law. Further, these seizures are taking effect without following any proper court process.

    Clearly, there could be a deprivation of the right to one’s own property, without the proper court case to establish whether anyone has committed a crime.

    These actions, merely on the basis that an individual has links to (in this case) the Russian government, appear to constitute a right about turn from the fundamental human right to property. This is arguable. The use of wealth to continue to back up the atrocities of war remains worrying. Sanctions of this type might be the only way to stop this practice.

    Asteria Advisory’s services include ship & yacht registration, and management & representatation for yachts. We also provide legal support on a more general basis.

  • Malta Maritime Summit

    Originally published in 2016 during the first time I attended the Malta Maritime Summit. These reflections remain relevant today as Malta continues to position itself at the forefront of maritime innovation and regulation.

    I was invited to speak about seafarers and yachting at the biennial conference, the Malta Maritime Summit, 2022.

    This is the forum where players in the maritime industry can bring matters of importance to the attention of the authorities and propose a way forward.

    It is the third time that this biennial event is being organised. It is being held in the first week of October 2022. I was only invited last week, during the Monaco Yacht Show. It was a really nice surprise and the referral came through a dear colleague and friend.

    Themed “The Voice of the Industry”, this event will host prominent and influential maritime stakeholders who will be debating maritime concerns and challenges facing the various sectors including the post-COVID reality, technology, environment and finance.

    These discussions include, in particular, the training needs of seafarers and of the yachting industry. The work of seafarers in yachting has come under the spotlight during recent times: many professionals do not believe that the current training formats are sufficiently set up to cater for the very specialised world that is yachting. Those working onboard yachts are set for an entirely different experience from seafarers in shipping. We shall see why – and explore solutions – during the panel session in which I am involved.

    I have been training seafarers since late 2009, but most of my trainees have been geared towards the shipping world. In yachting, there is an entirely different set of needs – both in terms of formal training as well as the human side of skills.

    The subject I shall be speaking on refers to the changing training needs of seafarers, particularly in the yachting industry. The industry also has its needs: the yacht owner needs to be assured of the training of the crew he employs onboard this very expensive asset. Lives are still at stake and it is important to ensure that crew are properly trained up for the job.

    The Malta Maritime Summit will include a discussion panel on exactly this topic.

    Since 2016, the Malta Maritime Summit has evolved into a key forum for dialogue on international shipping, policy, and sustainability. Asteria Advisory remains committed to supporting maritime businesses navigating this dynamic sector. Check out our ship & yacht registration or our management & representation services.

  • MBR Publishes Regulatory Amendments

    Act LX of 2021 introduces various amendments to the Companies Act, to take into account the EU’s Digitalisation Directive (which deals with electronic filings).

    Additional duties are imposed on the Registrar of Companies and certain additional requirements are put into place for companies. Additional forms needed to be drawn up. The rules also provide for the appointment of directors and disqualification criteria.

    A person applying to be appointed as director of a company is required to sign the Memorandum of the company or to submit a declaration in writing to show explicit consent to be appointed director and to declare whether they are aware of any circumstances that could lead to his or her disqualification, both under Maltese law and under any of the laws of other EU Member States.

    Therefore, Form K has now been revamped. It includes a second part which a director uses to signify his or her consent to the appointment. Form K(1) is used for that declaration to be made when a director is being appointed for newly-formed companies.

    These forms shall be accepted as of the 01 February 2022.

    More on this link: Legislative amendments introduced by Act LX of 2021 – Malta Business Registry (mbr.mt)

  • Best in Yachting Awards 2018

    The Malta Business Review recently nominated our Geraldine Spiteri to sit on a panel of judges during the Malta Best In Business Awards 2018. The event took place at Castello Dei Baroni in Wardija, Malta. Among the wide range of awards given, the nominations included a number of Best in Yachting Awards.

    Besides Geraldine, the adjudication panel was composed of other reputable members of the business community.  The Awards formed  part of the Malta Best in Business Awards, an annual event hosted by Malta Business Review.

    Participants hailed from a wide variety of service providers in the industry – lawyers, ship operators and agents, shipping companies and businesses. Indeed, there was a wide range of Maltese enterprises that have achieved high standards of excellence during the year. Some of the entities participating have a long-standing business history.

    At this year’s event, the pool of nominees was highly varied and interesting. The participants had a few very close wins and there was some tough competition. Needless to say, the judges all expressed difficulties in choosing the winners because of the high degree of achievement displayed.

    Closing the ceremony, the hosts wished everyone a prosperous year. Naturally, everyone is excited for the Best in Yachting Awards 2019.

  • Companies Act – Register of Beneficial Owners

    On the 1st January 2018, new regulations came into force setting up the register of beneficial owners within the Registry of Companies.  Companies must declare the identity of the ultimate beneficial owners (UBOs).  This applies for UBOs having a share or controlling interest of more than 25%. If there are none, then the company has to indicate who the senior administrators are.

    The regulations exclude companies where:
    1. They are listed on a regulated market and disclosure of beneficial owners is already required under the appropriate regulations; or
    2. All shareholders are natural persons disclosed to the companies registrar.

    The First Schedule of the regulations sets out a form which is to be delivered together with the M&As whenever a new company is being set up. Declarations must be submitted for each beneficial owner. The declarations must include name, date of birth and nationality, identification details and country of issue of the passport or identity document.  Failure to comply means that the Registrar will not register the company.

    The regulations require the Registrar to keep a register for information on the beneficial owners.  The information is not available to the general public except under payment of a fee to download the documents.

    Update – December 2023:

    A recent European court judgement has confirmed that having this information accessible by the general public is not strictly necessary or proportionate in terms of human law rights and thus, the ability to access beneficial owners’ information has now been limited to licensed entities and subject persons.  Read the article here.

    Companies must retain accurate, adequate and up to date information on all beneficial owners in compliance with the regulations.  They must hold this information in a beneficial owners register which they keep at the company’s registered office.

    Shareholders and UBOs are bound to provide the information without delay, even upon any change in the beneficial ownership or interest held.  New shareholders shall not be registered unless they comply with this requirment.

    Any changes in beneficial ownership must be notified to the registry within fourteen days.  Companies must use the prescribed Form including all the information necessary.  The same applies in the case of a transfer or transmission of shares, where this has entailed a change in beneficial ownership interest held.  Notices of changes must be signed by at least one director or the company secretary.

    Power of Authorities

    The registry is authorised to exchange the information with tax and other competent authorities as well as to subject persons carrying out CDD in terms of the applicable regulations.  Subject persons requesting such information may demonstrate their legitimate interest in obtaining such information, including on the basis of previous activities and proven track record.  (Note – this might cause problems for new start-ups).

    In exceptional cases where the beneficial owner risks exposure to harm owing to  disclosure, such information should not be disclosed.  Subject persons cannot rely exclusively on the register for CDD purposes.  Furthermore, authorities across the EU will have the power to exchange information with each other.

    Submission and Liability to fines for default

    The rules subject access to information to online registration and a fee of EUR 5.00 for every access to the information on the beneficial owners of each company. Post 2022, this information is only accessible to subject (licensed) persons.

    Default will expose every beneficial owner, shareholder, officer and the company jointly and severally to fines.  Officers can only escape this where they have used all due diligence in order to comply with the rules and was not at fault for the failure.

    This information is to be provided at every anniversary of each company after the initial submission.  Notably, the rules also apply to commercial partnerships.

    False or misleading statements can lead to hefty fines and / or imprisonment.  The rules make provision for electronic submission. This enables subject persons to submit documents on time.

    The Second Schedule lists down the applicable administrative penalties for failure to submit on time.

  • Information on Beneficial Ownership: Trusts and Trustees

    On the 1st January 2018, new regulations came into force concerning the operation of a Central Register of Beneficial Owners for trusts and trustees, for companies, for associations and for foundations.  This Central Register collects information on beneficial ownership of these structures or entities, in a continued fight against financial crime.

    What does it mean for trusts?

    For trusts and trustees, the rules only apply to express trusts generating tax consequences.  Within 14 days from being appointed as a trustee of an express trust, authorised trustees must submit a declaration of ownership to Malta Financial Services Authority (MFSA) where such trust has tax consequences.

    The regulations list the information to be provided by the trustee regarding every beneficial owner, and this without prejudice to any customer due diligence (CDD) carried out under the anti-money laundering regulations. CDD must be carried out before any such information is passed on to MFSA.

    Where the beneficiaries of a trust are a class of beneficiaries, special rules apply concerning the description of the class as well as inclusion of family members.  Limited information is to be provided where the trust is set up for charitable persons without any beneficiaries or classes of beneficiaries in whose name the trust is set up (drafting is a little unhappy here).

    The MFSA will keep a register for this purpose, and information must be such as to allow MFSA to fulfil its duties under the regulations.  Changes in beneficial ownership must be notified to the MFSA within 14 days.

    If the change is made to the trustee, the latter is required to inform MFSA.  An declaration stating that there has been no change is to be submitted yearly after the first declaration made, to be signed by the trustee.  MFSA should make such information available to listed competent authorities for tax and anti-money laundering.

    It is worth noting that changes to be notified include a change in passport number (e.g. issue of a new passport) or a change in registered address of the UBO.

    In exceptional cases where disclosure of such information would expose the UBO to danger, such information must not be disclosed.

    Obligations to file beneficial ownership information

    Subject persons may not rely solely on the register to fulfil their CDD.  Trustees cannot solely rely on their compliance with these regulations and must comply with requests for information from any subject person carrying out CDD obligations when onboarding or servicing customers.  Data protection rules still apply to information processed in terms of these rules.

    For trusts having tax consequences where a trustee was appointed before 1st January 2018,  trustees have six months within which to provide information to the MFSA.

    Administrative penalties of up to EUR 150k are applicable for failure to comply with the regulations.

    The MFSA’s Central Register shall be connected to a centralised European Register.

    The regulations provide for electronic submission of such information, making it easier to comply.

    Get in touch if you need help changing the information that the authorities held in respect of your business.

  • Opinion: A Commercial Court for Malta ?

    Update (2025): Since this article was first published, a Commercial Court has been established in Malta under the Code of Organisation and Civil Procedure. This opinion piece is retained for archival purposes, reflecting earlier commentary on the topic.

    Earlier in 2017, the Ministry for Justice, Culture and Local Government held a public consultation, titled “Setting up of the Civil Court, First Hall, Commercial Section“.  The consultation was then concluded in July 2017.

    Wide Range of Questions

    Consultation questions included whether there should be a commercial section within the civil arm of the Maltese courts. The consultation also asked whether the remit should be limited to the Companies Act or wider.

    Feedback Received

    The feedback received applauded the initiative of introducing this section. In the past the Maltese courts included a Commercial Court section. The commercial court was eventually discontinued.

    However, in the current litigation climate, both the Government and those participating in the consultation felt that the introduction of this section would increase in the efficiency of justice being delivered.  Naturally, it was considered imperative that the necessary human and other resources are provided.

    During the consultation, the feedback mentioned that matters falling under the Commercial Code should also be included within the scope of this section’s jurisdiction. Others suggested that other laws such as the Trusts and Trustees Act and other codes that deal with matters of a commercial nature (e.g.  banks) should also fall under this court’s jurisdiction.

    Existing Procedures and the New Court

    The court’s general area of competence and procedure are still unclear.  Most procedural matters are generally regulated by the Code of Organisation and Civil Procedure. A new court would need to have its own rules of procedure, or somehow be regulated by this Code.  The Code regulates the procedure of all the civil courts in Malta.

    The use of alternative dispute resolution mechanisms, including pre-trial conferences and/or arbitration or mediation were also considered an efficient means to resolve disputes.  They can provide direction in cases that are deemed to be high-risk or that are of a delicate nature.

    The consultation respondents further referred to the implementation of online filing and payment of fees.  At the time of writing, only physical payment and filing of court cases is possible.   This renders the process inconvenient and unwieldy for most professionals and increases crowding in court.

    Respondents additionally suggested other legislative amendments to be made alongside the setup of this new commercial court.  These amendments would ensure that the new Bill respects the current legal framework.

    In late 2017, the Government published its response to the consultation. In the response, the Government stated that, subject to Parliamentary approval, it plans to enact the new legislation in early 2018. The plan is for the new Commercial Section  to commence operation in the second quarter of 2018.

  • FIAU Press Release on Penalties

    Following the coming into force of the Various Financial Services Laws (Amendment) Act, 2017 (Act XXVIII of 2017) on the  1st December 2017, publication of administrative penalties imposed by the Financial Intelligence Analysis Unit (“FIAU”) for one or more contraventions of the Prevention of Money Laundering Act (“PMLA”) and/or of the Prevention of Money Laundering and Funding of Terrorism Regulations no longer falls under Article 13A of the PMLA but by the new Article 13C.

    Article 13C now provides for the publication of administrative penalties where these exceed €10,000 and have become final and due.  Publication is to take place in accordance with policies and procedures set by the FIAU’s Board of Governors.

    The then-existing Policies and Procedures were revised on the 22nd  December 2017, to take into account the changes brought about by the new Act as well as the requirements of Directive (EU) 2015/849 relative to the publication of administrative sanctions.

    The revised version of the said policies and procedures is available on the FIAU’s website and can be accessed through the following link – http://www.fiumalta.org/penalties .

    The FIAU advises subject persons to become familiar with these policies and procedures.  Queries on the matter are to be sent to legal@fiumalta.org.  

    If we can be of any assistance, please reach out to us.