Regulatory Alerts2026-06-17
Added · Updated
Mitigating Terrorist Financing, Proliferation Financing and Targeted Financial Sanctions Evasion Risks in Credit Institutions
The Malta Financial Services Authority (MFSA) issued a thematic review assessing all Maltese licensed Credit Institutions regarding their controls for mitigating terrorist financing, proliferation financing, and targeted financial sanctions evasion risks. The document outlines supervisory expectations requiring entities to integrate the National Risk Assessment into business risk assessments, ensure robust customer identification and verification processes, and maintain proportionate transaction monitoring and sanctions screening frameworks. Specific obligations include conducting regular restrictive measures exposure assessments, appointing senior staff for compliance, adapting systems for the EU Instant Payments Regulation, and maintaining rigorous outsourcing governance for third-party screening vendors.