The Malta Financial Services Authority (MFSA) together with the Financial Intelligence Analysis Unit, (FIAU) have today launched a consultation document for the purpose of guiding Credit Institutions, Payment Providers and Electronic Money Institutions which have the competency to open accounts for persons in the financial technology sector.
Thus far, the procedure of opening an account with the above-mentioned institutions has been negatively impacted by the money laundering and financial terrorism risks and concerns associated with this rapidly emergent sector. Through this document, institutions will be able to grasp a better understanding of the activities carried out by potential clients within the technological sector before officially offering any services to them, as well as knowing what information to enquire for from operators in order to clearly identify what services they provide.
On the other hand, this document also provides guidance to companies who are already in operation or are interested in setting up shop in Malta within the technological fields of Fintech, AI, DLT or IoT in their bank account opening process.
Through the publication of this document, the MFSA and the FIAU are acknowledging the risks which come along with technological innovation and are to be commended for taking a proactive approach by highlighting the industry’s concerns and addressing them through this consultation process.
It is recommended that this document is read together with the Implementing Procedures, the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR) and any other relevant document issued by the FIAU. The consultation period for this document is open to the public until the 30th of April 2019 and any interested parties are to send any feedback and comments to email@example.com.
Article by Dr Gabriel Fenech
This article is not intended to impart legal advice and readers are asked to seek verification of statements made before acting on them.