Issue link: https://maltatoday.uberflip.com/i/1254350
13 maltatoday | WEDNESDAY • 3 JUNE 2020 OPINION The MFSA and the Accountancy Board announce signing of Memorandum of Understanding THE Malta Financial Services Authority (MFSA) and the Accountancy Board have entered into a Memo- randum of Understanding (MoU) that establishes a framework for co-operation, mutual assistance and exchange of information between the two entities. "The MFSA looks forward to a closer collab- oration with the Board which regulates the ac- countancy profession in Malta as this will further enhance the Authority's capacity to effectively su- pervise licensed entities," commented MFSA CEO Joseph Cuschieri. On his part, Prof. Peter Baldacchino expressed his satisfaction, remarking that "the Accountancy Board is pleased that, for the first time, it has for- malised, through this MoU, its collaboration with the MFSA within the parameters of its regulatory framework. Consequently, the Board now looks forward to closer inter-regulator communications concerning any relevant issues of common inter- est." The MoU was signed by Joseph Cuschieri, Chief Executive Officer of the MFSA, on behalf of the Authority and Prof. Peter Baldacchino, Chairman of the Accountancy Board, on behalf of the Ac- countancy Board. THE MFSA's multi-million investment in recruitment, training and technolo- gy are beginning to bear fruit. The reg- ulator tasked with oversight of Malta's financial services industry increased budget spending during the year, boosting investment expenditure on staff resources by 19% to €13.5 million, training by 229% to €456,000 and tech- nology spend by 26% to €2.8 million. This helped expand the Authority's programme of inspections and exami- nations by 35% to 350 and strengthen supervisory and enforcement action across the board. In addition to admin- istrative penalties and remedial action ordered in a number of cases, the Au- thority also took action to cancel the licences of four entities and restrict li- cences in three other instances due to weak governance and control systems and other breaches of licence condi- tions. Increased investment in AML/CFT supervision in particular led to the identification and initiation of steps to address weaknesses in due diligence and customer risk assessment process- es in a number of firms, as well as other weaknesses in transaction monitoring and sanctions screening, poor controls over data and infrastructure, and out- sourcing control functions. Enforcement action was also taken to identify and neutralise a number of financial scams and other instances of unlicensed activity. The regulator continues to work closely with interna- tional authorities in order to sustain its own investigations as well as help other regulators enforce supervision in their respective jurisdictions. MFSA reports 35% increase in inspections and examinations BEING able to tap accurate, up-to-date finan- cial information on companies and individuals in a timely manner is a key advantage in the fight against money laundering. That's why EU member states are required under the 5th AMLD to maintain centralised databases of all bank accounts in their territories. The FIAU is developing just such a database called the Cen- tralised Bank Account Registry or CBAR that will list all IBAN accounts issued by Maltese banks. IBAN, or international bank account numbers, are used when making or receiving international payments. The new registry will be launched in September. Tax authorities, law enforcement and other bodies will be able to access the registry for data in a matter of seconds, greatly speeding up investigations and audits. The FIAU recently hosted a series of webinars for financial institutions in order to help them prepare for the launch of the registry and better understand their obligations in terms of data provision. This is important given the demanding imple- mentation timeframe for private sector firms. The FIAU will shortly publish draft legislation govern- ing exactly who has access to the registry and un- der what circumstances. Meanwhile, the FIAU has unveiled its draft amendments to the PMFLTR or Prevention of Money Laundering and Funding of Terrorism Regulations in order to address Moneyval recom- mendations. The proposed amendments, in combination with guidance that is in the process of being draft- ed, will reduce the time period within which sub- ject persons can submit STRs, and empower the FIAU to take action against a subject person's sen- ior management for AML/CFT breaches. FIAU updates on new CBAR registry to tackle money laundering