The financial services industry contributed €1.1 billion to Malta’s economy last year, the financial regulator said on Monday.

In its annual report, the Malta Financial Services Authority said this €1.1 billion in gross value added marked a 4.3% increase over the previous year.

Over 17,000 people work within the industry, a growth of 26% when compared to 2021, the MFSA said.

This growth is also reflected in the number of applications that the MFSA received in 2022, with some sectors, such as the admissibility to listing of securities, even seeing a 70% increase.

The authority received 355 applications in total across all sectors during the year, 24% of which were withdrawn or refused.

In 2022, the MFSA conducted a total of 674 supervisory interactions, ranging from onsite to offsite reviews.

These included 364 meetings, six supervisory review and evaluation processes, 217 inspections, 76 thematic reviews, and 11 mystery shopping exercises.

A total of 44 enforcement actions were taken, amounting to €147,445 in penalties.

MFSA chairman Jesmond Gatt said the results achieved by the authority last year reflect the commitment of Malta's lawmakers and the jurisdiction to support the financial services industry.

Authority CEO Kenneth Farrugia warned that money laundering and terrorist financing remain significant threats to the integrity of the financial system.

Farrugia, a former FIAU director, said the MFSA worked closely with the anti-money laundering body and other stakeholders to address the remaining issues outlined in the financial action task force’s action plan.

He said Malta's removal from the grey list in June 2022 was a testament to the hard work and collaboration of all stakeholders involved.

“The authority is committed to continue contributing to the fight against financial crime, including through close cooperation with the FIAU and other competent authorities. Effective supervision is also crucial in maintaining the stability of the financial system,” Farrugia said.