Issue link: https://maltatoday.uberflip.com/i/1544145
10 maltatoday | WEDNESDAY • 1 APRIL 2026 OPINION I have seen first-hand the cost of PFAS pollution in human health, environ- mental damage and economic loss. These forever chemicals stay in soil, water, air, wildlife and our bodies. We owe it to future generations to tackle one of the biggest pollution problems of our time. And we owe it to our busi- nesses to provide certainty and pre- dictability on how PFAS can be used as safely as possible. This is a political priority for the European Commission and a personal priority for me. We are working with precisely this goal in mind. PFAS chemicals are wide- ly used for industrial production and consumer goods. Their very resistant features make them useful in many critical sectors and industrial applica- tions. But they are also used when safer, suitable and commercially viable alter- natives exist. We estimate that 100,000 sites in Eu- rope emit PFAS. The cost of cleaning up already contaminated sites is huge but the cost is even bigger if nothing is done to tackle future pollution. Many people are concerned about the level of PFAS found in our water, our envi- ronment and our bodies; I am no ex- ception. Last year the Dutch authorities re- vealed that the entire Dutch population has different kinds of PFAS in their blood. There is no reason to believe that the situation is fundamentally dif- ferent elsewhere. The good news is that the commission and member states have taken action in recent years. Some well-known sources of PFAS pollution have been banned. However, we need a more structured and systematic approach that effective- ly tackles this problem, and provides certainty and predictability to busi- nesses. We can stimulate innovation and support the transition to safer and more sustainable chemical substitutes at the same time. And we need strict rules that control pollution. Based on the request from several member states, the European Chem- icals Agency (ECHA) is working on a wide PFAS restriction and has just published its scientific opinion. Sound final opinions by the agency will be delivered later this year based on the latest available science and evidence, as well as on the socio-economic impact of possible restrictions. The European Commission will take this forward to provide regulatory clarity as a as soon as ECHA finishes its work. We sup- port the transition away from forever chemicals and will seek a ban on PFAS in consumer goods and industrial uses where adequate alternatives exist. As always, any new rules need to be simple by design and give certainty, clarity and predictability for consumers as well as businesses. I also see opportunities ahead—many companies in the EU have taken the lead by investing in PFAS-free alter- natives. We need to support that com- mitment. Clear European standards would avoid a patchwork of national rules and can help our companies lead in consumer trust, innovation, and sus- tainable solutions. Our goal is to fos- ter a competitive, innovative and safe internal market, where businesses can Providing regulatory certainty on forever chemicals Jessika Roswall European Environment Commissioner AS the European financial landscape under- goes an era of profound digital and structural transformation, the mandate of national com- petent authorities continues to evolve. We are no longer just the custodians of the Single Rulebook; we are the architects of its effective, consistent, and forward-looking implementa- tion. For the Malta Financial Services Author- ity (MFSA), our 2026 Supervisory Priorities set out a clear and purposeful roadmap to en- sure that Malta remains a resilient, competi- tive, and trusted jurisdiction at the heart of the European financial ecosystem. Transitioning to an outcomes-based frame- work The core of our 2026 strategy is a decisive shift toward an outcomes-based approach to compliance. While technical adherence to regulation remains essential, our supervisory lens is increasingly focused on the real-world effectiveness of a firm's controls. This evolu- tion is particularly visible in our expectations in governance, risk and compliance (GRC). We recognise that a strong compliance cul- ture is not merely a regulatory obligation but a strategic differentiator. Accordingly, our ongoing supervisory work will place greater emphasis on the substance of board oversight, the independence and rigour of internal audit, and the genuine embedding of compliance principles across the organisation. Strengthening integrity and fostering inno- vation To maintain the integrity of our markets, strong and effective financial crime compli- ance remains an unequivocal priority for the MFSA. By deepening our supervisory focus on transaction monitoring, MLRO effectiveness, governance arrangements, risk assessment practices and customer screening processes, we are reinforcing the resilience and robust- ness of Malta's financial system against illicit activity. Our supervisory efforts will remain fully aligned with the upcoming EU AML legisla- tive package, while we continue to strength- en our cooperation with both national stake- holders and European authorities to ensure a cohesive and robust defence against financial crime. This commitment to integrity is comple- mented by our focus on digital finance. As we steer the industry through the effective imple- mentation of DORA and the MiCA transition, our goal is to ensure that innovation develops on a foundation that is both structurally sound and operationally resilient. In doing so, we aim to support licensed firms as they scale their global operations responsibly and sustainably within an evolving regulatory landscape. Furthermore, we recognise that the future of finance is inseparable from our environmen- tal responsibilities. Through our oversight of sustainable finance, we are committed to ensuring that ESG disclosures remain trans- parent, reliable, and free from greenwashing. This approach not only strengthens market integrity but also aligns the financial sector with the broader ambitions of the European Green Deal, supporting a transition toward a more sustainable and accountable financial ecosystem. Collective resilience and cross-border col- laboration The resilience of a financial centre is ulti- mately defined by its capacity to absorb and adapt to shocks. Our priority on strengthen- ing the resilience of supervised entities—span- ning capital adequacy, liquidity soundness, and operational readiness—continues to be carried out in close collaboration with the European Central Bank (ECB) and the Single Resolution Board (SRB). Through active en- gagement in Cross-Border Supervision and sustained participation in supervisory col- leges, we ensure that firms operating across multiple jurisdictions are held to consistent, rigorous standards of safety, soundness and supervisory alignment. Our final mandate: safeguarding the con- sumer At its core, the entire framework of finan- cial regulation exists to one fundamental purpose—protecting the consumer. Every thematic review we conduct and every stress test we perform is, ultimately, an exercise in consumer protection and education, ensuring that the financial system works in the best in- terests of those who rely on it. We are committed to safeguarding the rights and interests of retail investors and policyholders by ensuring that products are fit for purpose, clearly and transparently mar- keted, and designed to deliver genuine value. By fostering a fair, informed, and trustworthy marketplace, we not only protect individual consumers but also the public's confidence in the financial system as a whole. This unwavering commitment to the con- sumer remains the definitive measure of our effectiveness as a regulator, and the bench- mark against which we continually assess our success. Anchoring stability through effective oversight Kenneth Farrugia Malta Financial Services Authority CEO