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Malta’s Financial Institutions Must Comply with Stringent Regulatory Requirements

Valletta, Malta - As financial institutions in Malta increasingly rely on cloud services to operate their businesses, they must ensure that they comply with a complex web of regulatory requirements.

The Role of the Malta Financial Services Authority (MFSA)

The MFSA is responsible for supervising and regulating the country’s financial services industry. The authority licenses financial institutions and conducts regular inspections to ensure compliance and combat financial crime.

Regulatory Requirements for Cloud Services

For financial institutions in Malta using Amazon Web Services (AWS), understanding the regulatory requirements is crucial. AWS provides a strong compliance framework and advanced tools and security measures to help customers evaluate, meet, and demonstrate compliance with applicable legal and regulatory requirements.

European Banking Authority’s Guidelines on Outsourcing Arrangements

The European Banking Authority’s Guidelines on Outsourcing Arrangements, issued in February 2019, apply to EU-regulated credit institutions, investment firms, electronic money institutions, and payment institutions. The guidelines provide guidance on contractual and operational areas such as:

  • Audit rights
  • Security of data and systems
  • Location of data and data processing
  • Sub-outsourcing
  • Contingency plans and exit strategies

Local Regulations in Malta

Additionally, local regulations, guidelines, and laws in Malta may also apply to financial institutions using cloud services, including the Banking Act 1994. Regulations are changing rapidly in this space, and AWS is working to help customers proactively respond to new rules and guidelines.

Compliance Requirements for Financial Institutions in Malta

Financial institutions in Malta are permitted to use cloud services, provided they comply with applicable legal and regulatory requirements. To better understand their compliance needs, financial institutions should consider the following:

  • The purpose of the workload(s) under consideration
  • Assess the materiality or criticality of the relevant workload(s)
  • Review the AWS Shared Responsibility Model
  • Map AWS responsibilities and customer responsibilities

Resources for Compliance

AWS offers various resources to help customers navigate these complex regulations, including:

  • AWS Compliance Quick Reference Guide
  • Implications of the Code of Conduct for Cloud Infrastructure Service Providers in Europe
  • Navigating GDPR Compliance on AWS
  • Using AWS in the Context of Common Privacy and Data Protection Considerations