Financial Crime World

Financial Institution Compliance Best Practices in Malta: Navigating Regulatory Compliance Visits with Ease

The notification of a compliance visit by the Malta Financial Services Authority (MFSA) can be a daunting experience for financial institutions. However, regulatory compliance visits are an essential part of ensuring that institutions meet their legal requirements and maintain open communication channels with the regulator.

Preparation is Key

Staying Informed

  • Regularly review regulatory updates, thematic reviews, and circulars published by the MFSA
  • Stay informed about supervisory priorities and expectations

Implementation of Changes

  • Dedicate time and resources to staying up-to-date on regulatory developments
  • Implement changes accordingly

A Robust Compliance Framework

Proper Documentation

  • Have properly documented policies, procedures, and internal controls
  • Regularly review and update documentation to reflect operational practices and current regulatory requirements

Contractual Arrangements

  • Ensure contractual arrangements, such as intragroup outsourcing agreements, meet regulatory standards

Effective Organization

Centralized Digital Documentation System

  • Use a centralized digital system to easily access and search for documents
  • Identify gaps in documentation and respond promptly to regulator requests

Timely Communication

  • Communicate with the regulator in a timely manner
  • Provide documentation and replies within given timeframes

During the Compliance Visit

Transparency and Cooperation

  • Act as the main point of contact during the visit
  • Ensure accurate and timely information is provided
  • Cooperate fully with the regulator

Simulating the Compliance Visit

  • Identify potential issues before the visit
  • Prepare for questions from the regulator

Maintaining a Record

Cover Letter

  • Use a cover letter to accompany all communications, including documentation sent to the regulator
  • Maintain a record of what has been sent and when

Ongoing Commitment to Regulatory Compliance

Staying On Top of Requirements

  • Regularly review and update documentation accordingly
  • Ensure ongoing compliance with legal requirements

By following these best practices, financial institutions in Malta can navigate regulatory compliance visits with ease, ensuring they remain compliant with legal requirements and maintain a positive relationship with the MFSA.