Financial Crime World

Malta’s Financial Sector Regulatory Bodies: A Hub for Global Finance

Malta has emerged as a major player on the global financial stage, boasting a significant GDP contribution of 12%. With a combined net asset value of almost $12.2 billion and over 725 investment funds, Malta hosts more than 10,000 employees in the financial services sector.

Regulatory Landscape

The regulatory landscape in Malta is shaped by the Malta Financial Services Authority (MFSA), which enforces laws adhering to EU and international standards. Key regulations include:

  • Companies Act: Provides for investment companies with variable share capital and those denominated in foreign currencies.
  • Investment Services Act: Regulates investment business.

Embracing Blockchain Technology

Malta has made significant strides in embracing blockchain technology, including cryptocurrency and fintech solutions. In July 2018, Malta passed three landmark bills into law:

  • Virtual Financial Assets (VFA) Act: Establishes a comprehensive framework for virtual financial assets.
  • Blockchain/Distributed Ledger Technology (DLT) Service Providers Act: Regulates blockchain/DLT service providers.
  • Cryptocurrency Exchanges Act: Regulates cryptocurrency exchanges.

Opportunities in the Sector

Opportunities abound in:

  • Trade Finance
  • Group Marketing
  • Private Banking
  • Trust Business
  • Investment Banking
  • Venture Capital
  • Captive Insurance
  • Fund Management
  • Custody Services
  • Outsourcing and Coordination Services

Sustaining Growth

The MFSA is committed to sustaining growth in the sector, with a favorable legal and regulatory framework that attracts blue-chip banks, fund managers, and professional practices from around the world. Malta’s competitive position was further solidified by its ranking among the top 20 financial services jurisdictions in the World Economic Forum’s Global Competitiveness Report.

Resources for Industry Stakeholders

Industry stakeholders can access resources from the MFSA and Finance Malta to navigate the regulatory landscape and capitalize on opportunities in this thriving sector.