Legal

The Malta Sanctions Monitoring Board Has Published Guidance on the Reporting Obligations and Deadlines Under Article 5r of Regulation 833/2014

By May 14, 2024 No Comments

Due to Russia’s ongoing actions destabilising the situation in Ukraine, the Sanctions Monitoring Board refers to Article 5r of Council Regulation 833/2014 addressing restrictive measures. In accordance with this clause, the EU has imposed a requirement that will give the Sanctions Monitoring Board greater insight into the flow of money pertaining to Russian-owned businesses outside of the EU without endangering the operations of businesses that are (partially) owned by Russia and legally conducting business in the EU.

Article 5r of Council Regulation 833/2014 sets out a reporting obligation which applies to:

 – Legal persons, entities and bodies established in the Union whose proprietary rights are directly or indirectly owned for more than 40 % by a legal person, entity or body established in Russia; a Russian national; or a natural person residing in Russia and;
– Credit and financial institutions.

Article 5r of Council Regulation 833/2014 sets out a reporting obligation

According to Article 5r, paragraph 1, the first reporting period for required operators must span from January 1 to March 31, 2024. However, reports must be turned in by May 1, 2024.
Reports are thereafter due on July 15, 2025 for Q2, October 15, 2025 for Q3, January 15, 2025 for Q4, and April 15, 2025 for Q1 2025, two weeks after each quarter concludes.

Reporting for credit and financial institutions that are starting fund transfers under Article 5r(2) will begin on July 1, 2024, which is immediately following the conclusion of Semester 1. As a result, the deadlines for the first report are July 15, 2024, and January 15, 2025, for the second semester.

It is anticipated that credit and financial institutions, as well as obligated operators, will utilise the template developed by the European Union Commission1 and meet the dates for submitting their information to the Sanctions Monitoring Board.

Send submissions to reporting.smb@gov.mt for consideration by the Sanctions Monitoring Board, clearly mentioning the duties under Article 5r in the subject line. If there are no updates, please provide NIL reports to the Sanctions Monitoring Board through email. Please go here to view the FAQs that the Commission has released regarding the application of Article 5r.


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