Financial Crime World

Malta Takes Lead in Preventing Financial Crimes with Technology

Malta has made significant strides in preventing financial crimes by embracing technology-driven innovations in the financial sector. The country’s commitment to fintech and innovation has enabled it to stay ahead of the curve, making it a leader in regulating and promoting sustainable growth within the financial services sector.

MFSA’s FinTech Strategy

The Malta Financial Services Authority (MFSA) launched its FinTech Strategy in 2019, outlining six strategic pillars aimed at enabling technology-enabled financial innovation. One of the key initiatives is the FinTech Regulatory Sandbox, established in 2020, which provides a regulatory environment for technology-enabled solutions to test their innovations within the financial services market.

FinTech Regulatory Sandbox

The revised MFSA FinTech Regulatory Sandbox, launched in March 2023, takes into consideration lessons learnt over the past two years, industry feedback, and best practices adopted by other regulatory sandboxes. The revised framework aims to operationalise the sandbox efficiently and effectively, including a revised Proposal Form and Application Stage.

Malta has strengthened its international links by becoming an official member of the Global Financial Innovation Network (GFIN) in 2020. The GFIN aims to help innovative financial services providers interact with regulators and scale new ideas.

European Digital Finance Package

Malta is committed to addressing policy developments arising from the European Digital Finance Package through an internal working group. The country’s goal is to become an enabler of sustainable, technology-enabled financial innovation and digital finance within the financial services sector.

FinTech Adoption Study

A recent study by the MFSA found that over 50% of financial services entities have taken actions towards digitisation, digitalisation, or the implementation of enabling technologies and innovations. The study also shed light on the state of digital transformation and fintech adoption within the Maltese financial services sector.

Key Findings

  • Over 50% of financial services entities have implemented digitization, digitalization, or enabling technologies
  • Digital transformation is a key area of focus for many financial services entities
  • The study highlights the need for further innovation and investment in fintech to stay ahead of emerging trends

Conclusion

Malta’s commitment to embracing technology-driven innovations has positioned it as a leader in preventing financial crimes while promoting sustainable growth within the financial services sector. As the country continues to evolve and adapt to emerging trends, it is likely to remain at the forefront of financial innovation and regulation.

Benefits of Malta’s Approach

  • Preventing financial crimes through technology-enabled solutions
  • Promoting sustainable growth within the financial services sector
  • Staying ahead of emerging trends and regulations