Issue link: https://maltatoday.uberflip.com/i/1472080
5.12.19 11 COMMERCIAL 30.6.2022 AI, ESG transformation can provide opportunities for business growth - accountants THE Malta Business Registry has pub- lished its annual report and Financial Statements for the year ending 31st De- cember of 2021. 2021 was quite a busy year for the Reg- istry Unit, whose work involves the vet- ting of company-related documentation and registering notifications on changes in company details. In 2021 the Registry Unit registered 215,920 documents, re- viewed 4,525 name reservations, issued 38,930 certificates and 6,257 certified true copies of registered documents. Moreover, a total of 3504 new compa- nies were registered. Despite adversities brought about by the COVID-19 pandemic, the Compli- ance Unit conducted onsite in- spections which were carried out as per Regulation 12 of the Companies Act (Register of Beneficial Owners Regula- tions). Despite pandemic restrictions, inspections increased by 85% over 2020 – up by 701 to 1,529. e Unit carried out significant work in relation to the screening of involve- ments. An amount of 192 screening was done on founders of legal organisations, 2,537 with regards to administrators and other local representatives of other legal organisations, 6,056 were direc- tors of proposed new companies, 7661 were Beneficial Owners of proposed new companies, 9,010 screening of in- dividuals of companies struck off with the defunct procedure and 45,409 were directors, shareholders, and beneficial owners of existing companies. e MBR went from strength to strength in its screening procedures. Compared to the previous year, there was an increase of 28% in the screening of shareholders and an increase of 20% in the screening of directors proposed for new incorporations. In addition, there was an 89% increase in forms be- ing reviewed, reflecting a 66% increase in the amount of screening related to forms. Additionally, the MBR Compliance Unit carried out a risk assessment on commercial partnerships with a spe- cific focus on BO information through collaboration with local authorities and institutions. ere were 10 proposed new organi- sations rejected by the Foundations and Associations Unit, 365 new companies rejected by the Registry Unit and 470 new companies rejected by the Compli- ance Unit. Furthermore, in 2021 through the Le- gal and Enforcement unit, a total of 66 lawsuits were opened, of which 16 were decided after the companies had regu- larised their position by submitting the pending documentation and settled all the fines. Several legislative initiatives were tak- en, particularly in putting forward a myriad of amendments that were even- tually translated into law. ese include new responsibilities for the Registrar to pursue a broader role for the entity as a supervisory authority. An important step forward was to pro- vide the competent authorities with the details of persons subject to anti-money laundering investigations and enforce- ments. Simultaneously, the agency strived to implement European directives and regulations, mostly pertaining to company law, especially digitalisation. Where necessary, company law was amended to reflect such changes, as well as introduce new processes to ex- isting procedures, such as the setting up of a company, submission of related documents, both during the formation and throughout its lifespan, all of which can be done online. A meticulous pro- cess that will be completed during 2022 and one which must ensure the authen- tication and verification of the submit- ted documents. "e Malta Business Registry pursued with its stance in imposing new obli- gations, the issue of fines and enforce- ment. ese were deemed necessary to ensure a transparent registry, always in the best interest of the business com- munity and the Maltese jurisdiction. As tedious a task as it may be, rather than a police state approach, as it may often be perceived by many, the Malta Business Registry aims to serve as a guiding bea- con for our practitioners and business- es. is is the mindset I have strived to establish as soon as I took on the role of CEO and Registrar of this entity," said Dr Geraldine Spiteri Lucas. MBR was awarded the HR Quality Mark for another consecutive year. is followed a thorough assessment by the Foundation for Human Resources De- velopment. is reward recognises the professionalism, competence, and con- tribution of the HR function to any or- ganisation. "All in all, the Malta Business Registry made it its ultimate mission to date to ensure an up-to-date registry to provide peace of mind to the business commu- nity when doing business to safeguard the Maltese jurisdiction. In fact, we en- sured to wholly implement FATF Rec- ommendations. Whilst at the very start of the overhaul currently in place there was resistance, I am pleased to note that over the past year there was a sense of culture change with practitioners com- mitted to adapting and offering a bet- ter service to our clientele. Saying so, the Malta Business Registry plays a key role amongst other authorities, hence, I appeal to companies, practitioners and service providers to see us as an essential partner that will guide them through endeavours," Spiteri Lucas said. Silvio Schembri, Minister for the Economy, European Funds and Lands, thanked the Malta Business Registry for their commitment especially during this year. "It has been a very busy year for you as a business registry, but the necessary goals have been met. is experience has taught us a lot and all the positive practices will continue to ensure that we have a strong business register that is ready to meet the challenges," he said. Malta Business Registry publishes 2021 annual report AS economies seek to renew themselves in a post-pandemic scenario, firms can capitalise on the opportunities aris- ing from changing norms, structures and technologies, including the main- streaming of Artificial Intelligence and Environmental, Social and Governance matters. As the entrepreneurs' trusted advisors, accountancy professionals are well-positioned to drive this change. is emerged during a conference for Professional Accountants in Busi- ness hosted by the Malta Institute of Accountants. is Conference sought to discuss how professionals can trans- form the challenges brought about by recent trends in industry into new op- portunities for business growth and success. Introducing the Conference, MIA President David Delicata, reflected on the various reforms affecting the in- dustry and beyond, both as a result of grey-listing and also within the context of international efforts to reform cor- porate taxation systems, to strengthen governance requirements and to push further the sustainability agenda. Mr Delicata explained how the Institute and the profession in general are sup- portive of such reforms but insisted that these should not stifle competitive- ness and increase bureaucracy. "Rather, this is the right opportunity for Malta to come up with new economic niches to enhance our competitiveness while maintaining the high standards that have emerged over the past months", the President added. MIA CEO Maria Delia highlighted how accountants possess the right skills to be able to influence strategy with- in firms and organisations. She noted that there is a major role to be played in various areas, including analysing supply chains, in directing strategy, in seeking new markets and in attracting new investors. "It is very important to understand what the market wants and to bridge the gap between what the ac- countant can offer and what the need is". e various sessions sought to help accountants better understand how PAIBs can continue to develop as lead- ers within their organisations. In fact, throughout the event, accountancy professionals exchanged views with industry stakeholders, including com- pany leaders, CEOs and CFOs, as well as representatives of constituted bodies to seek solutions towards creating val- ue both within businesses as well as for the wider society. is necessity is ac- centuated in the current post-pandemic regeneration period, where businesses continue to face renewed challenges being posed by geo-political tensions in Europe and record inflation levels. A common theme that emerged from such discussions was that account- ants have the ability to be purveyors of change in a number of areas – whether governance, environmental and social sustainability as well as digital innova- tion. For this to be possible, continu- ous investment in improving skills was identified as quintessential to adapt to the emerging realities. In parallel, the challenge in attracting the right re- sources was frequently underlined by participants. Panel discussions were addressed by a number of experts in fields including on AI, the sourcing of capital funding and credit management. ese panels fea- tured both informative sessions updat- ing participants with the latest devel- opments in the respective fields as well as open and frank discussions during which representatives of authorities, firms and accountancy professionals shared their views and sought common ways of securing growth and success for the years ahead. e PAIB Conference was supported by LEXCO Compliance Solutions.