MFSA publishes its Annual Report & Financial Statements for 2022

The Malta Financial Services Authority (MFSA) has released its Annual Report and Financial Statements for the year ending on 31 December 2022, highlighting the financial industry's strength in the face of global challenges. Despite the obstacles posed by a rapidly changing economic landscape, the financial services sector exhibited positive momentum and showcased growth and resilience. 

 

Contribution to the economy

One of the notable achievements of Malta's financial industry in 2022 was its contribution to the economy. The sector's Gross Value Added (GVA) increased by 4.3%, reaching EUR 1.178 billion, an encouraging rise from the previous year. This growth was accompanied by a surge in employment, with over 17,000 individuals finding work within the industry, representing a 26% increase compared to 2021. 

 

The MFSA received a total of 355 applications for authorisation across all sectors throughout the year. While the majority were approved, 24% of applications were either withdrawn or refused. On a positive note, applications for the admissibility to list securities experienced a substantial 70% increase, indicating a vibrant capital market. 

 

Key areas: AML & CFT 

Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) remained key areas of focus for the MFSA, with 84% of the 600+ supervisory interactions addressing these critical issues. Recognising the importance of enhanced supervisory oversight, the MFSA introduced dedicated functions for trustees, corporate service providers, and capital markets, further strengthening its regulatory framework. 

 

In 2022, the MFSA actively pursued its enforcement actions, taking a total of 44 measures that resulted in penalties amounting to €147,445. These actions demonstrate the authority's commitment to maintaining integrity and safeguarding the interests of stakeholders. 

 

Outreach initiatives

The MFSA also engaged in over 200 outreach initiatives to foster stakeholder engagement, reinforcing its commitment to building strong relationships within the industry. Additionally, the Financial Supervisors Academy, dedicated to upskilling the workforce, provided over 21,000 hours of training in 2022, witnessing a significant 16% increase compared to the previous year. 

 

Recognising the need for a secure and robust financial ecosystem, the MFSA undertook substantial initiatives to enhance its IT infrastructure, cybersecurity measures, and digitalization efforts. These steps reflect the authority's commitment to fostering innovation, growth, and stability within the sector. 

 

Five Strategic Pillars

Looking forward, the MFSA has outlined five strategic pillars in its Strategic Statement, aiming to achieve them over the next three years through defined milestones. These objectives prioritise high standards, consumer protection, and enhanced investor confidence, ensuring a resilient and thriving financial sector in Malta (click here to learn more about MFSA supervisory priorities of 2023)

 

The MFSA's work to address the remaining issues outlined in the Financial Action Task Force (FATF) action plan resulted in Malta's removal from the grey list. This accomplishment signifies the collaborative efforts of all stakeholders involved and sets the stage for a more secure and trustworthy financial industry.