Financial Crime World

Malta’s Financial Sector Regulatory Bodies Take Centre Stage in Shaping EU’s Economic Future

Transforming from Offshore to Onshore: Malta’s Journey to a Stable Financial Services Centre

Malta has successfully transformed its economy by creating a seamless framework that supports both domestic and international economic activity. This transformation is built upon the country’s robust financial sector regulatory bodies, which have earned international recognition for their commitment to best practice.

The Birth of a New Regulatory Framework

The overhaul of Malta’s financial legislation in the early 1990s marked a key turning point in the country’s journey towards becoming a stable financial services centre. Since then, the Maltese government has continued to refine its regulatory framework, working closely with global organizations such as the Organisation for Economic Co-operation and Development (OECD) and the European Union.

The Financial Sector: A Key Contributor to Malta’s Economy

Today, Malta is home to over 6,000 people employed in the financial sector, which contributes a significant 12% to the country’s GDP. Financial services operators have benefited from:

  • Reduced bureaucracy
  • Streamlined procedures
  • Lower fees and compliance costs
  • Consistent implementation of standards

The Malta Financial Services Authority (MFSA)

At the forefront of Malta’s financial regulatory landscape is the MFSA, established in 2002 as the single regulator for banking, investment services, insurance, and other financial services activity. The MFSA is a fully autonomous public institution that reports annually to Parliament.

The MFSA’s three main organs:

  • Board of Governors: responsible for policy and direction
  • Supervisory Council: responsible for licensing, monitoring, and supervision of financial services licence holders
  • Board of Management and Resources: responsible for day-to-day management, finances, and coordination

These organs work together to ensure that Malta’s financial sector remains competitive and compliant with global standards.

Shaping the Country’s Economic Future

As Malta continues to evaluate and update its legislation and regulations, it is clear that its financial sector regulatory bodies will remain instrumental in shaping the country’s economic future. With their commitment to best practice and international cooperation, these bodies have cemented Malta’s position as a major player in the EU’s financial landscape.