Malta: Financial Services

The Travel Rule, originating from FATF Recommendation 16, has evolved from traditional wire transfers to encompass virtual asset service providers, with the EU's Transfer of Funds Regulation now in full effect. As compliance costs mount and payment infrastructures multiply, critical questions emerge about the financial burden on licensed institutions, data protection risks, and whether these regulations effectively combat money laundering and terrorist financing.

The European Commission has published new delegated regulations amending the EU prospectus disclosure regime, introducing streamlined content requirements and standardized formats for various categories of prospectuses. These reforms, part of the broader EU Listing Act package, aim to reduce regulatory burdens for issuers while maintaining investor protection, with key changes including reduced historical financial information requirements and simplified disclosure obligations.

Ganado Meets returns with a new series exploring Malta's sophisticated funds industry ecosystem. This introduction episode delves into fund administration, legal innovation, tokenisation, digitalisation, private equity, family offices, and digital-asset valuation, showcasing the depth of services that have developed over decades in Malta's financial sector.

The European Union has evolved its Capital Markets Union into a more ambitious Savings and Investments Union, aiming to unlock €11 trillion in household savings while addressing a critical mismatch between abundant European savings and insufficient productive investment.

A Maltese court has ruled that BNF Bank plc can enforce its pre-existing security rights over property subject to a seizing and freezing order, marking the first instance where the Civil Court (Asset Recovery Section) released assets to protect a bona fide secured creditor. The judgment establishes that banking institutions holding legitimate security interests acquired in good faith are not automatically overridden by asset recovery measures.

Malta's financial regulator has proposed a new regulatory pathway for aircraft financial leasing companies that offers an alternative to existing licensing requirements. The consultation introduces Article 3B to the Financial Institutions Act, creating a registration-based framework with specific substance and governance requirements that could reshape how aviation finance entities establish operations in Malta.

The Central Bank of Malta has issued new supervisory expectations for payment service providers offering instant payment services, establishing eleven key requirements to combat fraud in the instant payments environment. These expectations address critical areas including transaction monitoring, customer awareness, device registration protocols, and the implementation of automated fraud detection controls.

In our third episode we meet André Xuereb, professor of physics at the University of Malta and an entrepreneur. André is a thought leader in quantum technologies with a passion for exploring how we can shape tech for a safer tomorrow.

Payment Institutions offering crypto-related services face a complex new regulatory landscape under MiCAR, requiring separate authorisation beyond their existing licences. The framework introduces substantial compliance obligations spanning conduct rules, disclosure requirements, and capital adequacy standards, while imposing multi-layered costs that can reach tens of thousands of euros annually. Understanding whether the commercial benefits justify these regulatory burdens has become a critical strategic q