MFSA publishes 2020 Annual Report

During 2020, the Authority continued to engage with supervised firms to ensure effective governance structures, promoting the right culture, and raising compliance standards in the financial services market. Some of these measures include:

• The provision of ongoing training to staff with an emphasis on AML-CFT training
• The adoption of a risk-based approach to strengthen MFSA’s supervisory effectiveness
• The publishing of Supervisory and Enforcement Effectiveness Dashboard which underscores the progress made in resourcing, enforcement actions, and supervisory inspections
• The unprecedented increase in supervisory inspections across the board
• The focus on AML/CFT inspections

In the Annual Report 2020, the MFSA also outlines its priorities for the different sectors which it regulates, namely, Banking, Insurance and Pensions, Securities and Markets, Trustees and Company Service Providers, as well as the VFA sector. Some of these initiatives include:

• The thematic review of AML and CFT governance carried out across credit institutions
• The supervisory flexibility measures taken in the face of the pandemic, the industry engagement efforts leading up to Brexit, and the increased intensity and coverage of the Supervisory Inspection Programme within the insurance sector
• The drafting of an Asset Management Strategy and a Capital Markets Strategy
• The implementation of the 5th Anti-Money Laundering Directive in relation to Trusts Beneficial Ownership Register and The publishing of the Amendment to the Company Service Providers Act which extends authorisation to previously exempt individuals and entities
• the amendments made to the VFA framework to adopt a more stringent approach than the 5th Anti-Money Laundering Directive.

In terms of objectives for 2021, the Authority is focused on three main pillars: 

• Bringing stability for the long term of the financial services sector
• Providing continuity with the implementation of the strategic plan 2019-2021
• Fostering growth, through the implementation of the Capital Markets strategy and the Asset Management strategy

To download the MFSA 2020 Annual Report, visit: https://www.mfsa.mt

Publication date: 17/06/2021