Malta

The financial services industry in Malta has come a long way since the first tentative steps into the sector in 1989. Today the industry is a major component of, and a major contributor towards, Malta’s economic success, and all the indications are that financial services will continue to be one of the drivers of the local economy going forward.

The rapid expansion of the financial services sector is a measure of Malta’s economic prowess. The availability of a growing host of financial institutions and services is enhancing the process of wealth creation.

Innovation, integrity, effective risk-management, and adaptation are critical to industry leadership and as the world economy re-gains momentum, the international financial services sector is reinventing itself. Intense competition is fuelling these changes and the key to staying ahead lies more and more in leveraging all available mechanisms in order to ensure that customers get what they need when they need it.

The Malta International Business Authority Act of 1988 provided a legal framework that permitted Malta to venture into the international business and financial sphere.

As important economic reforms started taking root during the early ‘90s it was decided that the special off-shore framework should be integrated into Malta’s economic mainstream. A major legislative reform was undertaken and in 1994, the Malta Financial Services Centre (MFSC) was set up to consolidate the regulatory framework and spearhead the development of integrated financial services sector able to service both domestic and international economic activity.

Malta's regulatory structure was further consolidated in 2002 with the establishment of the Malta Financial Services Authority (MFSA) as the single licensing and supervisory authority for all financial services activity.

The Agenda for Maltese Financial Services in Europe launched in January 2004, provided the blueprint for the repositioning of Maltese companies within the context of accession to the European Union. This document defined how we should position ourselves to attract the right foreign direct investment; improve the level and quality of our services; build a strong brand; raise the level of professional competence; and continue to develop a suitable legal and regulatory environment.

The improvement and upgrading of Malta’s legislative and regulatory framework for financial services has since become a continuous process reflecting the dynamism of the sector, and this Government’s commitment to provide a comprehensive functional environment within which the industry can continue to grow.

Malta is today internationally known not just in its traditional areas of competence but also for the quality and high standard of its financial services. It is therefore important to the economy as a whole that this brand continues to develop and grow in strength and prestige to become a national resource in its own right.

The environment for the further development of the financial services industry is also changing. By agreement with the European Commission we have been able to retain our tax imputation system that is important in attracting business and investment to our shores. Now that the necessary legislation in this regard has been passed, it is imperative that we continue to focus on expanding this sector ensuring that we have the right policies to support its development.

Malta has high anti-money laundering standards and a comprehensive framework for financial services regulated by the Malta Financial Services Authority. There are also strong professional secrecy and confidentially laws.


"Finance Malta"

A non-profit, public-private foundation to promote Malta as a financial services centre was launched May 21, 2007. Branded Finance Malta, the foundation will seek to attract foreign financial operators in a bid to increase the sector's contribution to the economy.

The new non-profit body, branded Finance Malta, will be headed by the current chairman of the Malta Stock Exchange, Joe Zammit Tabona, and would centralise promotional activities previously carried out by the Malta Financial Services Authority and private sector organisations.

The Maltese government has set a target of 2015 for the jurisdiction to become one of the most important financial centres in the region.

Parliamentary Secretary Tonio Fenech explained that the new orgnaisation will "harness the resources of the industry, the regulator and the government to ensure that the country maintains a modern and effective legal, regulatory and fiscal framework in which the sector can continue to grow".

Fenech: "It is expected that Finance Malta will firmly support the industry’s thrust to promote Malta’s financial services brand, both within, as well as outside, our shores. In adddition, Finance Malta will bring together the industry, regulatory and Government representatives to ensure that Malta maintains a modern and effective legal, regulatory and fiscal framework in which the financial sector can thrive. This will be driven by a core belief that only a culture of continuous innovation will maintain our competitiveness in the global market place and will ensure that Malta is constantly at the leading edge of the latest international regulatory standards. How we operate within a fiscal, political, cultural and educational context has a crucial role in determining competitiveness. My Government recognises the importance of flexibility to adapt economic policy to a changing international environment. Government’s role of providing a policy-making structure and macroeconomic conditions that are stable and predictable, as well as its facilitation of efficient administrative structures and institutions, enable Malta to compete effectively in the world’s markets."


Malta member state of the European Union

Malta became a member state of the European Union on 1st May, 2004. Malta is well paced to reap the benefits from EU accession and embark on a path of rapid growth. Its human capital and geographical location place it in a favourable position in this regard. At present Malta is working on an advanced system of e-government aimed at creating the first e-government state supported by a fully digital telecommunications network. Corporate law in Malta is in full conformity with European requirements; accounting and auditing standards are based on International Accounting Standards.

Malta has been able to meet the required criteria and it is now time to passport our currency into the Eurozone, an area that has recently turned in some of its best economic results since its inception. Malta’s potential in this respect is immense. Investors who previously may have shrugged at the thought of investing in a small country in a currency they did not know will now be met by an EU Member State that does business in the second largest currency in the world.


The Lotteries and Gaming Authority (LGA)

The Lotteries and Gaming Authority (LGA) is a public single regulatory body that is responsible for the governance of all forms of gaming in Malta.

All gaming that takes place in Malta is regulated by the LGA. Accordingly the LGA is responsible for Amusement Machines, Broadcasting Media games, Casinos, Commercial Bingo Halls, Commercial Communication games, Horse racing, the National lottery, Non-Profit games, Remote Gaming and Video Lottery Terminals.

The gaming industry has transcended the limitations of brick and mortar casinos and high street betting shops, relying evermore on high tech innovations that have increased player interactivity and made it possible to deliver gaming anytime, anywhere and on any telecommunication device. For this reason gaming is also fraught with difficulties when it comes to define its conceptual and legal parameters. Regulators are finding it increasingly important to be backed by an effective legislative instrument and to have a sound corporate structure that enables them to take on new challenges.

The enactment of the Lotteries and Other Games Act, 2001 aimed to bring all gaming activities, with the exception of land-based casinos, under one comprehensive legislative instrument. The Act vested the Authority with a wide array of powers, thereby providing the necessary tools to implement effective regulation.

Malta Financial Services Authority (MFSA) Registry of Companies MALTA The Lotteries and Gaming Authority (LGA) The Government of Malta

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