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CJEU Invalidates Public Access to Beneficial Ownership Registers

A Shift in EU Transparency Law relating to beneficial ownership

On 22 November 2022, the Court of Justice of the European Union (CJEU) delivered a landmark judgment in Joined Cases C‑37/20 and C‑601/20. The decision marks a major shift in EU anti-money laundering and data protection law. It addresses whether the public should have unrestricted access to beneficial ownership information.

The Court struck down a key part of the 5th Anti-Money Laundering Directive (Directive (EU) 2018/843). This provision required Member States to grant the public full access to beneficial ownership registers for companies incorporated in their territory.

Background: Balancing Transparency and Privacy of beneficial owners

The 5th Anti-Money Laundering Directive introduced public access to beneficial ownership registers. It amended the 4th AML Directive (Directive (EU) 2015/849). The aim was to boost financial transparency, build trust in corporate structures, and strengthen efforts against money laundering and terrorist financing.

Sovim SA and another applicant in Luxembourg challenged these rules. They argued that the expanded transparency violated fundamental privacy rights under the EU Charter of Fundamental Rights.

The Court’s Findings

The CJEU ruled that the contested provision—Article 1(15)(c) of Directive 2018/843, which amended Article 30(5) of the 4th AMLD—was invalid. Here are the relevant considerations:

1. A Serious Interference with Fundamental Rights of beneficial owners

The Court found that full public access to beneficial ownership data constitutes a serious interference with the right to respect for private life (Article 7) and the right to protection of personal data (Article 8) of the Charter.

This interference was deemed particularly intrusive since it could:

Expose individuals’ financial and business affairs,
Facilitate profiling or targeting by malicious actors,
Lead to risks of harassment, extortion, or identity theft, particularly for beneficial owners with no connection to illicit activities.

2. Lack of Proportionality and Justification

The Court acknowledged transparency as a valid policy goal. However, it ruled that giving the general public unrestricted access went too far. The earlier approach under AMLD4—limiting access to those with a legitimate interest—struck a better balance.

The Court held that the EU legislature did not show why full public access was essential to meet the Directive’s aims.

3. Insufficient Safeguards for Beneficial Owners

Article 30(9) of AMLD4 let Member States grant exemptions case by case—for example, to protect high-risk individuals. But the Court found this safeguard inadequate. It came too late and did too little to prevent harm, especially when privacy risks had not yet emerged.

Implications for Member States and Corporate Transparency

This decision has immediate and long-term consequences for EU Member States. Businesses operating in the EU are also affected:

Member State Registers: Many countries—including Luxembourg and the Netherlands—moved swiftly to suspend public access to their beneficial ownership registers following the ruling. Others are reviewing legislative changes to align with the judgment.
Reassessment of Access Regimes: Member States must now ensure that access to beneficial ownership data is limited to parties with a legitimate interest. These would include competent authorities, financial intelligence units, and entities subject to due diligence obligations.
Future AML Legislation: This ruling would influence the upcoming EU AML Package, including the establishment of the new EU Anti-Money Laundering Authority (AMLA). Once created, AMLA would centralise and harmonise certain oversight functions. Any further expansion of transparency tools will need to respect the limits drawn by the Court.

A Step Back or a Refocus in disclosing beneficial ownership information?

The judgment has attracted mixed responses. Privacy advocates have welcomed it as a necessary recalibration of data protection principles in an era of growing surveillance. However, transparency NGOs and investigative journalists warn that this sets back progress on tackling opaque ownership structures, especially in the wake of revelations like the Panama Papers.

At its core, the ruling reaffirms the EU’s constitutional commitment to fundamental rights, even in areas where policy goals like financial transparency are clearly important. For practitioners and compliance professionals, it serves as a reminder that regulatory ambition must be matched with legal precision.

If you have queries about the information held in respect of a company that you own, or you wish to notify the Malta Business Register of any changes in the beneficial ownership of your company, please get in touch and we will be pleased to guide you.

Understanding the Representative Actions Directive Malta

The Representative Actions Directive (Directive (EU) 2020/1828) introduces a harmonized framework for consumer collective redress across the European Union. Designed to strengthen consumer rights enforcement, the directive empowers qualified entities to bring representative actions on behalf of consumers, especially in mass harm situations.

Although the directive officially came into force in 2023, EU Member States had until the end of that year to transpose it into national law. Malta launched its public consultation on the directive’s implementation late in the year — closing on the 25th of November — and it remains unclear whether the required legal framework will be adopted on time.

Malta’s Existing Legal Framework

The concept of collective redress is not new to Maltese law. The Collective Procedures Act (Chapter 520 of the Laws of Malta) already allows for collective actions. However, the new legislation implementing the Representative Actions Directive aims to carve out competition claims from the existing act and handle consumer redress separately under a new legal framework.

Whether this bifurcated structure will fully comply with the directive remains an open question and one that legal practitioners are watching closely.

In Malta, the competent authority for consumer affairs is the Consumer Affairs Diretorate within the Malta Competition and Consumer Affairs Authority.

Methodology and Key Features

A key departure from the American class action model is the EU’s emphasis on safeguards against abusive litigation. Instead of a lead plaintiff representing a class, the Representative Actions Directive mandates that only qualified entities — typically consumer organizations or public bodies — may bring forward such claims.

These entities must meet strict criteria to be eligible for cross-border claims, as defined in a checklist by the European Commission. Domestic-only actions may require less stringent qualifications but still need to reflect the directive’s principles.

To mitigate the financial burden of litigation, the draft Maltese Bill proposes an exemption from court registry fees and reduced fees for unsuccessful claims. However, concerns remain about whether local consumer organizations possess the resources and manpower to file and follow through with complex claims.

Funding and Participation Challenges

Access to adequate funding remains a significant obstacle. Many Maltese organizations lack not only financial resources but also the human capital — particularly younger legal professionals — required to lead large-scale litigation efforts.

Malta is also opting for an opt-in mechanism, meaning consumers must actively choose to join a representative action. This raises additional concerns about consumer engagement, especially when the potential compensation is relatively modest.

Public Consultation and Legal Community Reactions

The public consultation revealed a variety of perspectives, many of which highlight both support for the directive and concern about Malta’s readiness to implement it effectively. Historically, Maltese courts have interpreted collective redress provisions liberally, but the new legal framework may narrow that flexibility.

Legal Training and Awareness

In response to the upcoming legal changes, I am hosting a seminar series this week focused on the Representative Actions Directive, its objectives, and Malta’s proposed implementation model. These sessions will explore legal, procedural, and operational aspects of the directive, offering insights for both practitioners and policymakers.

Conclusion

The Representative Actions Directive signals a significant shift in EU consumer protection enforcement. Malta’s approach to implementation — balancing existing mechanisms with new legislative structures — will play a pivotal role in shaping how collective redress is accessed and delivered locally.

As these developments unfold, it is essential for legal professionals and stakeholders to remain engaged, informed, and prepared to adapt to the evolving regulatory landscape.

Malta’s Maritime Industry: A Strategic Hub for Ships & Yachts

Introduction:

With a proud maritime heritage and strategic position at the heart of the Mediterranean, Malta has steadily evolved into a strategic hub for ships and yachts. Malta is a leading jurisdiction for maritime investment and ship and yacht registration.

Known for its robust legal and regulatory framework, Malta’s maritime industry offers significant opportunities for international investors. This applies to local and international stakeholders alike, for both ships and yachts.

A Growing Force in Global Yachting and Shipping

Malta continues to enhance its reputation as a reliable and forward-looking maritime flag state. During the Superyacht Symposium that took place in July 2021, Transport Minister Dr. Aaron Farrugia launched the development of a National Superyacht Strategy. This initiative gives a clear signal that Malta intends to further elevate its standing in the global maritime industry.

Update – November 2023: the initiative was published by government and can be downloaded here.

Industry professionals called for improvements including infrastructure and marina services, corporate and legal frameworks supporting ownership. These efforts aim to position Malta as a top-tier jurisdiction for yacht registration and support services. The strategy covers everything – from hard-standing facilities to high-quality professional advisory.

International Interest at the Monaco Yacht Show

Malta’s presence at the Monaco Yacht Show drew substantial attention, with the Transport Malta stand buzzing with activity. Visitors from around the globe showed a strong interest in the advantages of the Malta. They included yacht brokers, charterers, and industry professionals looking at both commercial and private yachts.

The Malta Business Registry was also present in Monaco. This move emphasised the close integration of commercial ship operations and maritime corporate services under the Maltese system.

Over the last decade, promotion of Malta’s maritime industry has become even more important as a government priority.

Building a National Superyacht Strategy

In a follow-up meeting hosted at the Malta Chamber of Commerce, key stakeholders shared recommendations for shaping Malta’s National Superyacht Strategy. Topics included: modernising Transport Malta’s online platforms, banking access and developing a private yacht code.

The attendees’ suggestions will all form part of a national White Paper. The government will publish these proposals once the proposals are properly considered.

These collaborative initiatives will play a pivotal role in reinforcing Malta’s legal and regulatory environment for shipping and yachting — ensuring long-term competitiveness and regulatory clarity for investors, operators, and clients.

Malta on the European Stage

Further bolstering Malta’s profile, recent proposals by a Maltese MEP on maritime transport were adopted by the European Parliament. This achievement underscores Malta’s active role in shaping maritime policy at the European level. It also reaffirms Malta’s ability to punch above its weight in a sector that continues to expand in both scale and complexity.

Conclusion: A Flag of Confidence

From ship registration to yachting advisory, from compliance management to infrastructure investment, Malta offers a powerful combination of expertise, international credibility, and commercial flexibility. With its EU membership, central Mediterranean location, and strong maritime tradition, Malta continues to position itself as a preferred jurisdiction for marine and shipping operations.

At Asteria Advisory, we support local and international clients with tailored legal and corporate services across the shipping and yachting sectors. Whether you’re setting up under the Malta flag, registering a vessel, or exploring new opportunities in maritime operations, we’re here to help.

👉 Get in touch to discuss how we can support your maritime venture or regulatory needs.
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📄 Download our latest factsheets on Ship & Yacht Registration in Malta from our Library.

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.

Operation Pedestal – 80th Anniversary Celebrations

Operation Pedestal 1942 is an historic – and heroic – World War II Allied operation, commemorated yearly in Malta. Therefore, veterans come together to remember the bravery of all those merchant seafarers, and naval and other military and civilian personnel who successfully delivered much-needed supplies to the tiny island of Malta.

Dr Geraldine Spiteri holds a wreath on behalf of the Nautical Institute

Santa Maria Convoy

In Malta, the operation is known as Il-Konvoj ta’ Santa Maria (Santa Maria Convoy). This is because it coincides with the feast of the Blessed Virgin, on the 15th of August.

The Italians, who at that time were part of the Axis forces, refer to Operation Pedestal as the “Mid-August Battle” (Battaglia di Mezz’Agosto).

The most crucial cargo during Operation Pedestal was fuel. The fuel was onboard the SS Ohio, an American tanker, manned by a British crew.

The convoy sailed from Britain on the 3 August 1942 and passed through the Strait of Gibraltar into the Mediterranean on the night of 9/10 August. The Axis forces pursued the convoy, causing tremendous losses to the Allied fleet with an estimated loss of over 500 seamen.

The convoy suffered many losses and only five of fourteen merchant ships that originally set sail on the convoy actually reached Malta.

A patrol boat of the Armed Forces of Malta Maritime Squadron sits at berth in preparation for Operation Pedestal

Operation Pedestal Reaches Malta

Despite being costly for the Allies, Operation Pedestal was a great victory, specifically because of Malta’s strategic location in the middle of the Mediterranean Sea.

The victory allowed the Allied forces to eventually take control of North Africa and prepare for the invasion of Sicily.

Every year, the Royal Navy Association (Malta GC Branch) holds a commemorative service to remember this landmark event.

The celebrations involve the Maritime Squadron of the Armed Forces of Malta (AFM), the Royal Navy Officers’ Association (Malta), Representatives from the British High Commission in Malta and other dignitaries.

Celebrating 80 Years

During the 80th Anniversary celebrations, the President of Malta made a formal address for the occasion. Later, the the Chancellor of the Anglican Church in Malta and a representative Chaplain of the Catholic Church in Malta offered prayers.

A wreath-laying ceremony ensued, during which dignitaries laid wreaths at sea from the bow of the P23, a patrol vessel of the Maritime Squadron of the AFM.

Members of the Armed Forces of Malta played the bagpipes and fired a gun salute as a sign of respect to the fallen. Members of the Royal Navy Officers Association (Malta) and the RNA Malta (GC Branch) carried their Association flags and wore their medals, while the family members of the last surviving crew member of the SS Ohio also attended.

Dr Geraldine Spiteri throws a wreath into the Grand Harbour during Operation Pedestal

The Nautical Institute (Malta Branch)

The Nautical Institute (Malta Branch), represented by the Branch Chairperson, Dr Geraldine Spiteri, was present at this ceremony celebrated on the 11 th of August.

The event was held at Pinto 3 Terminal, at the Valletta Grand Harbour Waterfront. This year, alongside the 80th Anniversary of Operation Pedestal, the Nautical Institute celebrates its 50th Anniversary.

The wreaths prepared to be laid in Grand Harbour for Operation Pedestal 80

Armed Forces of Malta - Maritime Squadron standing to salute with their bayonets at Operation Pedestal - 80th Anniversary.

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)

Europe celebrates Justice Day!

The 25th October saw Europe celebrate European Day of Justice. This annual date marks mark Europe’s commitment to delivering justice in its work.

Justice needs to be brought closer to citizens. The aim is to inform Europeans about their rights and to to promote the work of the Council of Europe and the European Commission in the field of justice. Events include simulation of procedures and information sessions.

16 Member States have mobilised this celebration. Activities included free legal aid to citizens on their rights, open days at the courts and dissemination of information. Some States established social platforms for the general public to ask questions. Other entities have published books, films and other materials.

Training and information sessions for justice professionals and students also took place in many States. A high number of law students participated in competitions held at their universities and colleges.

Malta’s initative

The Maltese courts marked this day by bringing to the citizens’ attention easy access to the progress of cases through the E-Courts system, which is now also accessible on a smartphone platform.

The e-courts platform allows citizens to monitor the progress of their cases, including sitting dates, through an online system.

The online services also includes the Insolvency Register, payment of fines, searches on judicial sales being held and hall usage, which allows citizens to know which hall their sitting is being heard in.

It is also possible to get mobile notifications of court matters relevant to the person applying, and to pay court registry fees.

Malta Visa and Residency Programme

You can get your Malta residency and your Schengen VISA provided you fulfil all the requirements to do so.

Why is Malta such a widely sought-after place to live?

One can think of beaches, a comfortable lifestyle, good restaurants and the beautiful sea.

Malta is also a good place to work or to open a business in because of its successful economy and its geographical location. Malta is indeed an excellent business hub.

The Maltese archipelago lies virtually at the heartof the Mediterranean Sea. It is 93 km south of Sicily and 288 km north of Africa.

The archipelago consists of three islands: Malta, Gozo and Comino with a total population of over 400,000.

Obtaining a residence permit and VISA in Malta is fairly straightforward. In general, a person has to be of age and have a stable income or otherwise self-sufficient, and to obtain an address in Malta through lease or purchase of property. (Additional requirements apply).

We can assist the customer to obtain the Residency Certificate, which would be issued upon the applicant satisfying the list of criteria published by the Malta Visa and Residency Agency.

Applicants may apply for a Maltese residence permit on the basis of one of the different types of application.

Once the Residency Certificate is issued, the Beneficiary and his/her dependants have the right to reside, settle or stay in Malta indefinitely. It also grants freedom of movement within the Schengen Area. A Beneficiary may also apply for a work permit.

Malta’s Visa and Residency Programme is available for third country nationals, along with their dependants. It excludes EU/EEA AND Swiss nationals.

September is Yacht Show Season

Asteria offers a broad range of services for owners of yachts, from the acquisition and registration of the yacht, to its day-to-day management and until its onward sale. Throughout the yacht’s lifetime, Asteria provides guidance and services that make owning a yacht a pleasurable experience for the owner.

To any owner, a yacht is a high-value asset that is a pleasure to own and that requires proper management and care. Whether the yacht is a hundred-meter superyacht that needs to comply with all international maritime conventions, or a small yacht that only navigates in domestic waters, registration procedures and all formalities in relation to acquisition, ownership and charter need to be observed.

A yacht is also capable of being exploited commercially, in order that the owner can recoup some of the expenses necessary for its ongoing care and maintenance.

The ownership of a yacht involves dealing with a multitude of service providers and authorities, as well as a potential customer base (if the yacht operates commercially). However, this need not be a cause for concern for an owner who may have other business commitments to attend to: a reliable yacht management company and proper coordination of all the yacht’s servicing and maintenance are available through Asteria’s own expertise and its network of professionals.

The Yachting Industry

During recent years, the yachting industry has grown significantly in Malta as well as across the Mediterranean. It is still a small industry, and key players are all very well acquainted and highly professional.

Knowledge of operational standards as well as the rules concerning the yachts (from registration, to actual navigation and ownership of a yacht) is essential to ensure a smooth and uncomplicated experience. This is why we believe that our presence at industry events is important.

Asteria makes sure to remain abreast of all developments in order to be able to provide the highest standards of service possible.

From Flag to Charter – Operational and Financial Choices

Whether an owner wishes to obtain a yacht purely for pleasure purposes, or to charter it commercially, a number of key decisions need to be taken, including the yacht-holding structure, the choice of flag, crew selection and operational models.

Asteria holds the necessary knowledge base that will enable such service provision to the best of the client’s interests, and will procure the necessary legal, financial or tax advice in order to ensure that the soundest and most feasible choices are made all along.

Cannes Yachting Festival and Monaco Yacht Show

Networking Events Yacht shows are important events that bring together service providers from different angles of the industry, as well as clientele. The key period for such events is September, when the yachting season is drawing to a close on this side of the globe. Owners should begin making plans at this time in the event that they want to change or refurbish their yacht, or if their yacht requires some crucial maintenance or repair, in preparation for the next sailing season.

After our successful attendance at the Palma Superyacht Show in April, we took the plunge and visited Cannes Yachting Festival, which was held across Vieux Port and Port Canto in Cannes this year, in order to attend several events that we were honoured to be invited to.

The variety of yachts was immense, ranging from the smallest of tenders to large motor yachts and elegant sailing yachts gracing the marinas or at anchor in the open sea. We continued to forge relationships with important contacts across the sub-Mediterranean region, where our service provision is the most significant.

The Monaco Yacht Show is the place where practically every service provider of note will be at the end of September, strengthening business ties and making new ones. Asteria already holds a number of important contacts in the areas and will be attending important meetings which will highlight salient issues in the yachting industry.

Representation

Asteria will be attending with the aim of both strengthening its direct client-base as well as offering services to like-service providers, since we believe that there are ample opportunities for synergies across the service sector.

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.