Financial Crime World

Malta’s Financial Sector Prioritizes Compliance Amidst Ongoing Transformation

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The Malta Financial Services Authority (MFSA) has reaffirmed its commitment to achieving a high level of quality and effective supervision in the country’s financial services sector, with compliance being a key priority in 2021. As part of its ongoing transformation journey, the MFSA has made significant strides in enhancing its financial stability monitoring, investing in a quality workforce, and progressing in its digital transformation.

Nurturing a Culture of Compliance

The authority has continued to foster a culture of compliance among regulated entities through the development of holistic mechanisms. This includes:

  • Implementing consumer protection initiatives, such as:
    • A study on consumer behavior relating to home insurance
    • Launching a Payment Account Fees Comparison Tool on its website
  • Integrating Anti-Money Laundering/Combating the Financing of Terrorism (AML/CTF) elements within supervisory interactions and attending training courses

Prioritizing Financial Crime Compliance

The MFSA recognizes financial crime compliance as a top priority, with the authority:

  • Organizing a hybrid conference on financial crime, which attracted over 350 stakeholders
  • Continuing to review its Corporate Governance framework to raise standards across entities and authorized persons

Fostering Innovation and Sustainability

In addition, the MFSA acknowledges the importance of innovation in ensuring the long-term sustainability of the industry. The authority has:

  • Established digital finance as a key focus area, setting up an internal working group to holistically address policy developments arising from the European Commission’s package
  • Published its findings and expectations on ICT risk and cybersecurity approaches among entities

Supervisory Practices and Circulars

The MFSA has also ramped up its supervisory practices in the VFA sector following the authorization of the first VFA Service Providers in the first half of 2021. Sustainable finance remains a key priority for the authority, with several circulars issued focusing on European frameworks and guidance presented by European Supervisory Authorities.

Looking Ahead to 2022

Throughout 2021, the MFSA has continued to demonstrate its commitment to effective supervision, enforcement, and consumer education, while also promoting innovation and growth in the financial sector. As the authority looks ahead to 2022, it remains focused on:

  • Nurturing a culture of compliance
  • Supporting industry innovation
  • Ensuring the sustainability of Malta’s financial services sector