Malta’s Financial Institution Security Measures on the Forefront of Global Recognition

Malta has established itself as a leading player in the global financial sector, thanks to its advanced telecommunications infrastructure, highly skilled IT workforce, and welcoming regulatory environment for digital financial services. The country’s unique blend of innovative fintech solutions and robust regulatory frameworks has propelled it to the forefront of international recognition.

Regulatory Environment

Malta’s regulatory framework offers licensed financial institutions the flexibility to engage in a range of activities, from payment service provision to electronic money issuance. The Malta Financial Services Authority (MFSA) is the regulatory authority overseeing these institutions, and its commitment to transparency and adherence to international standards has been highlighted in its 2022 Annual Report.

Licensing Process

The licensing process in Malta is streamlined and efficient, with the MFSA ensuring that only institutions with a strong financial standing and stringent compliance measures secure licenses. The process begins with a high-level presentation submission, followed by a review process that includes meetings with the applicant to discuss any potential issues.

Why Malta?

Malta’s passporting benefits are a significant advantage for financial institutions, allowing them to operate within the EU. The country’s diverse and multilingual workforce is also a major draw, with its commitment to cultivating a diverse talent pool enhancing its appeal as an international business destination.

Malta’s Financial Sector

Malta’s financial sector is characterized by robust regulatory frameworks, fintech innovation, and cutting-edge telecommunications infrastructure. The country actively promotes the integration of emerging technologies, fostering an environment conducive to financial innovation. Malta’s telecommunications infrastructure has also received significant investment in recent years, with a cumulative €90 million committed between 2022 and 2023.

Global Recognition

Malta’s ability to balance innovation with regulatory diligence, combined with its advantageous geographical and economic position, has reinforced its standing as a globally recognized and respected player in the financial sector. The country’s favourable corporate income tax regime and double taxation treaties have also made it an attractive hub for businesses seeking to establish a tax-efficient presence.

Strategic Location

Malta’s central Mediterranean location offers excellent connectivity to continental Europe through various sea and air routes, making it an ideal destination for international business. The country’s advantageous climate, with 300 sunny days annually, adds to its appeal as a business-friendly destination.

Future Outlook

Looking ahead, Malta’s financial sector is poised for even greater heights, driven by strategic initiatives and forward-thinking policies set in motion by the Malta Financial Services Advisory Council (MFSAC). The MFSAC has identified 175 initiatives aimed at bolstering the financial services sector, with a focus on achieving tangible results within an ambitious 18-month timeframe.

At BDO Malta, we offer invaluable expertise to financial institutions navigating the licensing process in Malta. Our specialized advisory services are designed to streamline the complexities inherent in the licensing process, ensuring seamless compliance with local regulations and the successful establishment of your entity within Malta’s dynamic financial landscape.