Post by congregatio on Aug 12, 2021 20:02:13 GMT 4
One of the financial world’s widely-used digital investment platforms, Praemium, has announced it will terminate all form of business for Malta-based relationships and transactions, due to the island’s FATF greylisting.
Praemium said it will accept no new money onto the platform for existing businesses with links to Malta, and that all relationships where a client is resident in one of these jurisdictions would be moved to high risk, and enhanced due diligence will be required.
Any accounts holding funds will be frozen, Praemium said, saying these requirements always apply when Praemium becomes aware of a new country being added to the Financial Action Task Force’s greylist of jurisdictions subject to increased monitoring.
Praemium’s platform is used by over 500,000 investors as a fully-integrated account management platform for clients. Financial managers use Praemium for global custody services and reporting capability. The platform boasts of a ‘rebalancing engine’ so that all individual investment accounts are kept automatically in line with an investment strategy.
Wealth advisors who flagged the Praemium action to MaltaToday said they are worried the extreme position not to take new business from Malta, could spread to other global custodian agents.
Praemium’s letter to clients said that it would decline any new clients – whether they be underlying investors, advisor or third parties such as product providers – if they have strong links to, or are resident in Malta, or have operations based on the island. “For Praemium International Limited, Malta and other countries subject to the same action, would be included within the prohibited countries table within the CDD guidelines document,” the company said, referring to its due diligence guide.
Such actions by custodians of investments held by foreign portfolio investors (FPI) puts a big question mark on the investments made by Malta-based FPIs, and other FPI applications underway.
Both the greylist and actions by custodians like Praemium create a massive perception issue that could prohibit investment through the Maltese jurisdiction from large investors, such as pension, endowment, and sovereign wealth funds.
Malta was added to the FATF greylist on 25 June 2021.
Praemium said it will accept no new money onto the platform for existing businesses with links to Malta, and that all relationships where a client is resident in one of these jurisdictions would be moved to high risk, and enhanced due diligence will be required.
Any accounts holding funds will be frozen, Praemium said, saying these requirements always apply when Praemium becomes aware of a new country being added to the Financial Action Task Force’s greylist of jurisdictions subject to increased monitoring.
Praemium’s platform is used by over 500,000 investors as a fully-integrated account management platform for clients. Financial managers use Praemium for global custody services and reporting capability. The platform boasts of a ‘rebalancing engine’ so that all individual investment accounts are kept automatically in line with an investment strategy.
Wealth advisors who flagged the Praemium action to MaltaToday said they are worried the extreme position not to take new business from Malta, could spread to other global custodian agents.
Praemium’s letter to clients said that it would decline any new clients – whether they be underlying investors, advisor or third parties such as product providers – if they have strong links to, or are resident in Malta, or have operations based on the island. “For Praemium International Limited, Malta and other countries subject to the same action, would be included within the prohibited countries table within the CDD guidelines document,” the company said, referring to its due diligence guide.
Such actions by custodians of investments held by foreign portfolio investors (FPI) puts a big question mark on the investments made by Malta-based FPIs, and other FPI applications underway.
Both the greylist and actions by custodians like Praemium create a massive perception issue that could prohibit investment through the Maltese jurisdiction from large investors, such as pension, endowment, and sovereign wealth funds.
Malta was added to the FATF greylist on 25 June 2021.