Financial Crime World

Malta Financial Watchdog Steps Up Efforts to Protect Whistleblowers

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In a significant move to combat financial malpractices, the Maltese authorities have strengthened their commitment to protecting whistleblowers who come forward with information about improper practices.

The Protection of the Whistleblower Act (CAP. 527)

The Malta Financial Services Authority (MFSA) has been designated as a key player in receiving and investigating external disclosures related to financial institutions, insurance companies, and other regulated entities under the Protection of the Whistleblower Act (CAP. 527).

Reporting Misconduct

Under the Act, the MFSA is empowered to receive reports of misconduct or illegal activity from individuals who wish to remain anonymous. To facilitate this process, the authority has set up a Whistleblowing Reports Unit to handle these disclosures.

Conditions for Protected Disclosures

For an external disclosure to be considered protected, several conditions must be met:

  • The whistleblower must have disclosed their identity
  • They must reasonably believe that the information is substantially true
  • They must provide evidence of an improper practice
  • Internal or public disclosures must have already been made, unless otherwise allowed by law

Confidentiality and Protection

The MFSA has a duty to keep confidential the identity of anyone who comes forward with a disclosure, as well as any information that may relate to their identification. This ensures that whistleblowers feel safe reporting wrongdoing without fear of reprisal.

Remedies for Whistleblowers

If a whistleblower is disciplined by their employer for making a protected disclosure, they can seek remedies under the Act. These include:

  • Applying to the First Hall, Civil Court
  • Bringing a claim before the Industrial Tribunal
  • Lodging a complaint with the Office of the Ombudsman

Whistleblower Protection

It’s essential to note that whistleblowers are not liable to civil or criminal proceedings or disciplinary action for making a protected disclosure. However, knowingly disclosing false information is an offence punishable by law, and such whistleblowers may face legal action from affected parties.

Contact Information

For more information on the Whistleblower Act and its provisions, please visit the MFSA’s website or contact their Whistleblowing Reports Unit at:

  • Telephone: 2144 1155
  • Email: [email protected]
  • Physical Address: Triq l-Imdina, Zone 1, Central Business District, Birkirkara, Malta