MFSA Publishes Its Annual Report and Financial Statements for 2020

The Malta Financial Services Authority (MFSA) has published its Annual Report and audited Financial Statements for the year ending 31 December 2020, showing that the Maltese financial services sector saw an increase of 5.5% in real Gross Value-Added rate which grew to €1.028 billion in 2020.

Highlights from the year under review include:

• A higher number of supervisory inspections totalling 419, marking an 84% increase from 2019 and a 149% increase over 2018 figures.

• The integration of Anti-money laundering (AML) and Combatting the Funding of Terrorism (CFT) at the core of the Authority's risk assessment and supervisory frameworks. The MFSA conducted 81 supervisory inspections on behalf of the FIAU, both as full-scope (comprehensive) and focused (targeted) inspections.

• The processing of 265 applications for authorisation, 25% of which were withdrawn or refused.

• Ongoing monitoring of the effect of COVID-19 and Brexit on the sector including its effects on financial stability.

• Significant enhancements and investment in the human resource of the Authority, with a total of 16,383 hours of training provided to MFSA staff. In 2020, the Authority also set up the Financial Supervisors Academy which provides training programmes to employees, as well as to other regulators, supervisors, policymakers and academics outside of the MFSA.

• The continued implementation of the Authority's Technology Strategy whilst reaping the results of recent investments.

• A focus on ensuring stability, continuity, and growth for both the Authority and the sector.

• Continued focus on investor protection and consumer education.

• 52 enforcement actions taken, with the Authority issuing a total of €975,462 in administrative penalties, as opposed to the combined total of €1.2M issued in the three years between 2017 and 2019.

• A tenfold increase in the number of registered beneficial owners of trusts with more than 3000 declarations being registered.

Professor John Mamo, Chairman of the MFSA stated: "Despite the adverse circumstances generated by the pandemic, we are pleased to note that the Maltese financial services sector continued to grow and generate employment opportunities over the past year. We remain determined to steer the sector to a higher threshold of long-term sustainability, also through the integration of new areas of supervision and potential growth."