Financial services have been an important pillar of the Maltese economy for the past three decades. However, it is now opportune to take a fresh look at the sector and the Malta Financial Services Authority has an important role to play in this respect.
Since the financial crisis of 2008, regulation of providers of financial services has gone into overdrive. The fact that Malta is part of the European System of Financial Supervision (ESFS) means that Malta is at the forefront of these initiatives.
Regulators and the industry alike have had to adapt to a high-intensity influx of wide-ranging regulation, be it resolution, cybersecurity, open payments, anti-money laundering, sustainable finance, crypto assets and data protection, without mentioning intervening factors, such as Brexit.
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On 2nd February 2021, the Financial Intelligence Analysis Unit
(FIAU) issued an Interpretative
Note in relation to the interpretation of Article 2(1)(d) of
the Prevention of Money Laundering and Funding of Terrorism
Regulations (the
Regulations ), the
interpretation of which was causing difficulty to certain entities
and individuals operating within the insurance sector.
Regulation 2(1)(d) provides that any insurance intermediary
activities carried out by an insurance intermediary or by a tied
insurance intermediary with respect to long-term insurance business
and which intermediary or tied insurance intermediary is enrolled
Daniel Bilocca, compliance and risk director at NOUV, gives an overview of what legislative instruments have strengthened AML compliance in Malta.
2020 shall be remembered by Malta’s AML compliance experts for the numerous key legal amendments that have started turning the method of AML compliance enforcement over its head: the result of the publication of different acts and legal notices.
Malta’s initial step was to bolster its competent authority, the Financial Intelligence Analysis Unit (FIAU) to safeguard its transparency. Malta’s very first legislative Act of the year implemented the following measures:
i. The FIAU was granted the right to establish, manage and administer a central bank account registry for Malta which as per Legal Notice 401 of 2020 (the Centralised Bank Account Register Regulations), shall contain ‘data and information on accounts identified by IBAN held by credit and financial institutions and on safe custody services provided by credit instituti
Malta’s financial regulator issued a record 19 administrative penalties amounting to €975,462 last year.
According to information tabled in parliame
Malta’s financial services regulators have been cracking the whip with exorbitant fines but operators are complaining and government now intends to step in.
Finance Minister Clyde Caruana confirmed that he will shortly appoint a group of experts to evaluate the operations of the Financial Intelligence Analysis Unit and the Malta Financial Services Authority.
“This is not just about high fines but I have also received complaints that inspections by regulators sometimes go on for a month, effectively bringing the company’s operations to a standstill,” Caruana said on TVM’s Xtra.
He said a balance had to be found that ensured rules were obeyed but businesses allowed to operate.