Issue link: https://maltatoday.uberflip.com/i/1078260
15 maltatoday | SUNDAY • 3 FEBRUARY 2019 NEWS we collect. Over time, the MFSA has to be able to recover a substantial part of its costs from operators to make it as much as possible self-reliant for its funding," Cuschieri says. A cost-recovery model is unlikely to go down well with the sector. But pundits in the field do acknowledge the appar- ent dissonance between the extremely high fees companies pay practitioners and the low regulatory fees paid to the MFSA. Cuschieri says that at some point fees will have to increase but he promises this will be accompanied by a more ef- ficient service. "If we mean business, there has to be a revision of fees. Higher charges will be accompanied by a more efficient ser- vice. The intention is to have a self-sus- taining authority, a model very similar to other foreign institutions like the ECB, which is financed by European banks," Cuschieri says. The three-year plan will also adopt what Cuschieri describes as a risk- based approach when assessing opera- tors. Combatting financial crime A risk profile will categorise the dif- ferent licence holders accordingly. This will be useful at on-boarding stage when the company applies for a licence, and subsequently at supervi- sory stage. The risk profile will determine the frequency and depth of ongoing assess- ments. It will also help sharpen the fo- cus when combatting money launder- ing and other financial crimes. Cuschieri explains that the agency responsible for anti-money laundering supervision in Malta is the Financial Intelligence Analysis Unit. The FIAU carries out inspections together with the MFSA. On its part, the MFSA carries out supervisory visits to assess prudential and good conduct by firms. "I have suggested that inspections and supervisions related to money laundering should be the remit of the MFSA, which will then allow the FIAU to dedicate its resources to intelligence gathering in the fight against financial crime," Cuschieri says. Any such decision will have to be taken at a political level but within the current set-up he has instructed MFSA supervisors carrying out inspections for prudential and good conduct to also keep an eye on money laundering activities. "The MFSA has a specialised team on financial crime that works very well with the FIAU but if my inspectors, carrying out supervisions for things other than money laundering, notice something untoward, they will report such matters to the FIAU," Cuschieri says. He adds that the MFSA has to in- crease not just the frequency of in- spections but also their quality. But he insists, the fight against money laun- dering is not one country's battle. "We have to know what type of in- formation to look out for, what to ask for and how to analyse it. We need to improve but combatting money laun- dering is a Europe-wide issue and all member states have to up their game. All Europe has to step up in the fight against financial crime and this is why pointing fingers will get us nowhere," he says. Cuschieri admits his vision is ambi- tious but is confident that the people at MFSA will step up to the challenge. After two decades of constant growth in the financial services sector, Cuschieri believes it is time to shift the gear upwards. Only time will tell whether the Mal- tese jurisdiction will end up playing in the Champions League of financial ser- vices but Cuschieri wants to ensure the MFSA plays a significant role in this transformation. the Champions League "The MFSA of tomorrow has to provide regulatory efficacy. We need to increase the depth of our supervisions, be pro-active and fast. To do so, we need to invest in the right people and have systems running on the latest technolog y to help us rationalise the knowledge we collect and use it productively" Joseph Cuschieri