FIAU and MFSA issued a Guidance Document

Document introduced to support accounts in Fintech

A Guidance Document was issued by the Financial Intelligence Analysis Unit (FIAU) and the Malta Financial Services Authority (MFSA). This document aims to support corporations with customers engaged in Fintech and similar innovative projects, mainly Payment Institutions, Credit Institutions and Electronic Money Institutions.

The guidance document aims to help in the introduction of various policies and procedures, such as risk assessment, amongst others. As confirmed from various discussions held during this year, the document should be supplemented by Implementing Procedures and other documents created by the FIAU relating to the Prevention of Money Laundering and Funding of Terrorism Regulations (‘PMLFTR‘), rather than being used as a means to avoid regulations associated with the PMLFTR.

Encouraging the Fintech Sector

Dr Christopher P. Buttigieg, Chief Officer Strategy, Policy and Innovation, held that there is the need of expanding the Fintech sector and to draw foreign investors, while ensuring that the market is in line with the highest standards and regulations applied by banks.

Dr Priscilla Mifsud Parker, the Senior Partner in Corporate, Trusts and Fintech, acknowledged the Guidance Document and held that, “I hope that banks situated within Malta will be encouraged to reconsider their role on Fintech operators. Although there are risks, Malta’s financial and banking sector may take the opportunity to recognise the risks and act to mitigate them. A supportive and flexible banking model is vital for the success of the financial centre.”