The Malta Financial Services Authority (MFSA) recently hosted a pivotal international conference centred on the regulation of trustees and company service providers (CSPs). This gathering, attended by over 400 participants, featured a notable array of speakers including industry insiders, legal experts, regulatory officials, and representatives from global organisations like MONEYVAL, alongside foreign competent authorities.

Kenneth Farrugia, MFSA CEO

Kenneth Farrugia, CEO of the MFSA, emphasised the significance of stringent regulation for Trust and Company Service Providers (TCSPs) in his opening address. He underscored the necessity for collaboration and knowledge exchange in combatting financial crime effectively. Alfred Zammit, Director of the FIAU, echoed these sentiments, stressing the evolving role of TCSPs in the context of heightened awareness regarding beneficial ownership and the misuse of legal entities for illicit financial activities.

Andrew Lebrun from MONEYVAL provided insights into forthcoming changes with the introduction of a new evaluation methodology for countries. These changes entail updated FATF standards concerning risk assessment and supervision, alongside heightened expectations for TCSPs. Lebrun highlighted the need for more comprehensive business risk assessments, including consideration of group structures, and the importance of facilitating the sharing of customer account and transaction information across corporate groups.

A panel discussion, featuring contributions from Hamish Armstrong of the Jersey Financial Services Commission, delved into international best practices for authorising and supervising TCSPs. Armstrong emphasised Jersey’s proactive approach to mitigating risks associated with legal entities and arrangements, particularly in light of the sector’s rapid evolution and transnational nature.

MFSA conference

The conference further explored Malta's regulatory framework and licensing procedures for TCSPs, alongside various pertinent topics such as the Trusts Ultimate Beneficial Ownership Register (TUBOR), enforcement measures, public-private partnerships, and international financial sanctions. Local speakers representing key entities including the MFSA, FIAU, and the Sanctions Monitoring Board, provided valuable insights into Malta's regulatory landscape.

Other presentations covered the AML supervision and enforcement efforts of Malta’s financial intelligence unit, in addition to keynote speeches addressing outcomes-based supervision and the role of intelligence in AML/CFT efforts. Jesmond Gatt, Chairman of the MFSA, reiterated the authority’s commitment to nurturing an environment conducive to the growth and integrity of TCSPs in Malta during the event’s closing remarks.