Financial Crime World

MALTA FINANCIAL REGULATION UPDATES: MFSA STREAMLINES SUBMISSIONS FOR COMPANY SERVICE PROVIDERS

The Malta Financial Services Authority (MFSA) has introduced several changes aimed at simplifying regulatory submissions for Company Service Providers (CSPs). The updates took effect on January 23rd, 2024, and are outlined in a circular issued to CSPs.

Changes for CSPs

  • Simplified Submission Requirements: CSPs will no longer need to submit separate:
    • Annual Self-Declarations
    • Certificates of Compliance
    • Statements of Solvency
    • Balance Sheets
  • Individual CSPs Relief: Individual CSPs are exempt from submitting standalone Annual Financial Returns.

Changes for Constituted Partnerships

  • Simplified Reporting Requirements: Warranted civil partnerships authorized to act as Under-threshold Class A CSPs will only need to submit:
    • Annual Income Statement (profit and loss account)
    • Annual Balance Sheet
    • Notes explaining income statement/balance sheet items
  • Auditor’s Reports: No longer required.

Submission Guidelines

  • Portal Submissions: All submissions must be made through the Licence Holder portal.
  • Deadlines: Deadlines vary depending on whether a corporate or individual CSP is submitting. Note that extensions to submission deadlines will not be granted.
  • ACR Template and Documents: The ACR template and accompanying documents are undergoing updates to align with the introduced changes.

Additional Changes

  • Internal Controls Monitoring: The timeframe for monitoring internal controls has been extended from every six months to annually.
  • Voluntary Cancellation Process: Clarification has been provided on the voluntary cancellation process for CSP authorizations.
  • Notification Requirements: Class A and Class C CSPs must notify the Authority when using addresses different from their registered address.

Compliance Breaches

  • Annual Compliance Return (ACR): Breaches of the Company Service Providers Act or Regulations issued thereunder must be reported in the ACR.
  • Late Submissions: Late submissions are also considered a breach.
  • Notification Removal: The requirement to notify the Authority if the ACR would be submitted after the due date has been removed.

Important Note

  • Specialist Advice: Seek specialist advice about specific circumstances.