Regulatory Action against Insignia Cards Limited (“the Institution”)
DECEMBER 24, 2021

The Malta Financial Services Authority (“MFSA” “Authority”) decided to proceed with imposing an administrative penalty of one hundred and forty-two thousand Euro (€142,000) and directed the Institution to:

  • Cease the prefunding of charge cards with immediate effect;
  • Cease the processing of payments from Insignia Global Solutions Limited and Insignia Med Limited with immediate effect; and
  • Appoint an independent third-party firm to provide guidance.

Address:

Insignia Cards Limited
Level 4, Palazzo Spinola
46, St. Christopher Street
Valletta VLT 1464
Malta

Business Activity: Licensed to undertake payment services under the Second Schedule to the Financial Institutions Act (“FIA”) and to issue electronic money under the Third Schedule to the FIA.

BREACHES

The MFSA determined that the Institution was in breach of the following:

[i] Financial Institution Rule FIR/02/2020 for failure to keep proper record keeping arrangements;

[ii] Article 10B (1) of the FIA and the Financial Institutions Act (Safeguarding of Funds) Regulation, Subsidiary Legislation 376.04 for failure to properly safeguard clients’ funds;

[iii] Banking Rule 14/2020 for failure of alignment of internal documentation with statutory obligations;

[iv] Article 8B (1) of the FIA for failure to notify the Authority of the outsourcing of operational functions;

[v] Article 5(1)(c) of the FIA in relation to weak governance arrangements;

[vi] Article 16 (5) of the MFSA Act for breach of provision of information to the Authority.

REGULATORY ACTION

On 16 December 2021, the Malta Financial Services Authority decided to impose an administrative penalty of one hundred and forty-two thousand Euro (€142,000) and directed the Institution to:

  • Cease the prefunding of charge cards with immediate effect;
  • Cease the processing of payments from Insignia Global Solutions Limited and Insignia Med Limited with immediate effect; and
  • Appoint an independent third-party firm to provide guidance.

The Malta Financial Services Authority has taken this decision by virtue of the powers granted to it under the Malta Financial Services Authority Act and the Financial Institutions Act.

It should be noted that the MFSA’s decision may be appealed before the Financial Services Tribunal within the period established by the applicable law.

PUBLICATION

This notice is being published as part of the MFSA’s standard enforcement policy and in terms of Article 16(8) of the Malta Financial Services Authority Act.