MFSA Recasts Financial Crime Supervision Ahead of Europe’s AML Overhaul
The Malta Financial Services Authority has published its Financial Crime Compliance Strategy 2026, recasting how it supervises financial crime risk ahead of the European Union’s anti-money laundering overhaul.
What changes
The strategy shifts the regulator’s focus from compliance procedures to measurable results. It adopts a risk-based supervisory approach, implements an outcomes-based supervision model, directs regulatory resources towards higher-risk sectors and activities, and integrates financial crime oversight across the whole regulatory lifecycle, from authorisation through to enforcement.
Six strategic priorities
- Risk-based supervision
- Outcomes-based supervision
- Lifecycle oversight of authorised entities
- Streamlined regulatory coordination and oversight
- Stronger coordination and collaboration
- Enhanced industry engagement and outreach
European context
The strategy aligns with the EU’s new AML legislative package and positions Malta for the establishment of the Anti-Money Laundering Authority (AMLA), with an emphasis on a harmonised European supervisory landscape.
What it does not do
The document does not introduce new compliance obligations. It redefines the regulator’s supervisory approach and its expectations of authorised entities.
MFSA Chief Executive Kenneth Farrugia said: “By adopting a risk-based, outcomes-driven framework and enhancing collaboration at both national and European level, we are reinforcing the resilience and integrity of Malta’s financial system.”
Article Credit: https://www.grcreport.com/post/mfsa-recasts-financial-crime-supervision-ahead-of-europes-aml-overhaul