MFSA issues €570,673 in penalties as reporting failures dominate 2025 enforcement

91 enforcement actions recorded in 2025

The Malta Financial Services Authority recorded 91 enforcement actions during 2025, with administrative penalties totalling €570,673, according to its latest overview of enforcement activity.

The Authority also handled 943 potential enforcement cases arising from supervisory work and other sources. The MFSA Enforcement Function investigates possible breaches of financial services laws and regulations and can recommend regulatory action where necessary.

Reporting failures account for around 69% of actions

Late or missing regulatory filings remained the main source of enforcement action. The MFSA said 63 administrative penalties, representing around 69% of all enforcement actions, related to the late or non-submission of statutory documentation. Of these cases, 25 were concluded through settlement.

The regulator stressed that meeting reporting deadlines remains the responsibility of licence holders and cannot simply be delegated to third parties. It also said it does not issue reminders for submission deadlines and grants extensions only in exceptional circumstances.

Individual regulatory actions can be viewed through the MFSA’s Administrative Measures and Penalties register, while cases resolved through settlement are published separately under Settlement Notices.

Client-fund safeguards remain an enforcement priority

The MFSA also highlighted weaknesses in the safeguarding of client funds at some financial institutions, including inadequate segregation of client money, irregular or insufficient reconciliations, and shortcomings in governance and internal controls.

One financial institution had its licence cancelled during 2025 partly because of breaches of safeguarding requirements, while further investigations in this area remain ongoing. The Authority said safeguarding is both an initial authorisation requirement and a continuing obligation for regulated firms.

Depending on the nature and seriousness of a breach, enforcement measures can include administrative penalties, directives, public reprimands, or the suspension or cancellation of a licence. For regulated firms, the findings underline the importance of maintaining reliable regulatory calendars, strong governance controls and effective procedures for protecting client funds.