Company Service Providers (CSPs) are crucial within the financial services sector, as they are often the first point of contact for persons wishing to undertake business activities in Malta. In this respect, CSPs are considered to be gatekeepers given the nature of their role in preventing persons who are not fit and proper from entering the financial system.
Through this proposal the Authority is aiming to raise the bar for all persons providing the services of a CSP by harmonising market entry requirements and addressing existing expectation gaps. Furthermore, the proposals seek to address the concerns raised within the Mutual Evaluation Report recently published by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (‘Moneyval’).
The Authority’s proposals may be categorised into two: [i] a proposal for a holistic regulatory framework for CSPs in Malta; and [ii] proposals in relation to the Maltese institutional architecture for the regulation of CSPs.
MFSA CEO, Joseph Cuschieri, commented that “our aim is to strengthen oversight of the sector and raise standards across the board. CSPs are a crucial component of our financial system and the MFSA will be ensuring that all CSPs have the right skills, competences and risk management procedures in place to conduct their role in an effective manner. Whilst the MFSA will still be performing due diligence assessments, raising the standards of CSPs would subsequently mitigate the risk of persons who are not fit and proper from entering the financial system.”