MFSA Warning – Betal Trade FX – Unlicensed Entity
The Malta Financial Services Authority (“MFSA”) has become aware of an entity operating under the name of Betal Trade FX which has an internet presence at www.betaltrade.com. The entity claims to have “a category 3 licence by the Malta Financial Services Authority in terms of which it is authorised to provide investment services from Malta”.
This website is also making unauthorised use and reference to the registered address and other company details of a Maltese licensed company.
The MFSA wishes to alert the public, in Malta and abroad, that Betal Trade FX is NOT a Maltese registered Company NOR licensed or otherwise authorised by the MFSA to provide any financial services which are required to be licensed or otherwise authorised under Maltese law. The public should therefore refrain from undertaking any business or transactions with the above-mentioned entity.
The MFSA would like to remind consumers of financial services not to enter into any financial services transaction unless they have ascertained that the entity with whom the transaction is being made is authorised to provide such services by the MFSA or another reputable financial services regulator.
Investors are advised to be extra cautious when being approached with offers of financial services via unconventional channels such as telephone calls or social media.
A list of entities licensed by the MFSA can be viewed on the official website of the MFSA at https://www.mfsa.mt/financial-services-register/.
If you are a victim of a scam or think you might be dealing with an unauthorised entity or any other type of financial scam, first of all stop all transactions with the company and contact the MFSA at https://www.mfsa.mt/about-us/contact/ as soon as a suspicion arises.
Towards an EU-wide harmonised FDI screening process – NFDISO
In March of 2019, the European Parliament and Council, enacted Regulation (EU) 2019/452, which established a framework for the screening of foreign direct investments into the Union. The regulation, which entered into force in April of the same year, applies to transactions taking place post-October 2020, onwards.
The FDI Regulation represents a crucial shift, for the EU, as for the very first time, screening of foreign direct investments is being regulated at European Union level. In fact, this development has the potential to significantly impact those investors from third countries that consider investing in the EU. More importantly, it can also be of relevance to the interests of EU investors.
As the FDI regulation does not impose a strict regime for EU-wide FDI screening, the final decision on FDI screening rests with the EU Member States, which remain sovereign in this crucial area. The focus of the regulation is more on the principles of coordination and cooperation between Member States.
“This is a great step in the right direction, which will certainly contribute towards an increasingly harmonised and robust screening of FDI in the EU” said Mr Mario Galea, Chair of the newly established offices for National Foreign Direct Investment Screening (NFDIS) in Malta.
Locally, the office has been set up in order to implement this regulation, with the ultimate aim being the protection of European Union intelligence, knowledge, and technology, as well as its security interests.
The sectors which shall be subject to screening are varied and include infrastructure, energy, transport, water, health, and communications among others. A full list can be accessed on the NFDIS website.
All interested practitioners, including audit, legal firms, business consultants and all practitioners who are in any way involved in the promotion of foreign direct investment, are therefore encouraged to get in touch with the NFDIS Office, and get updated on the new procedures governing the registration of new investment in Malta.
Practitioners will be informed how they will be required to submit all relevant applications for such purpose with the Office, prior to relevant submission with the MBR. The applications will require determinate information, relating to the investment and ownership structure, including information on the ultimate investor and beneficial.
In case of doubt, the service provider may seek an initial opinion from the Office which will give the necessary guidance as may be required in the case in question.
The Office wishes to reassure practitioners that it is not its intention to create any unnecessary bureaucracy. In fact, in those cases where it is clear that the activities do not require screening, the Office will seek to provide its green-light within 24 hours.
In the cases where screening will be required, this will be undertaken with full due diligence on the activity and on the ultimate beneficial owner. This process will take some time to conclude, although the Office will endeavour to conclude the process in the shortest time possible whilst not compromising, in any way, the extent and quality of the screening to be conducted.
Communication on Implementation of New Indicators List for GoAML reporting
The FIAU introduced a new list of indicators from January 1, 2021, to better capture similar characteristics from reports in a more granular manner, to improve data collection and the capacity of typology identification.
Thus, the reporting entities are kindly asked, with the aid of indicators, to capture all elements that can briefly summarise the main points of the suspicious transaction or situation being reported.
Such indicators include, but are not necessarily limited to the following:
i) the reason for suspicion;
ii) the predicate offence;
iii) the product offered to/used by the client in that situation;
iv) the main funding methods;
v) issues with the CDD process;
vi) whether the client was rejected for ML/FT concerns;
vii) if emerging threats/trends/patterns are observed;
viii) any involvement of high risk clients/jurisdictions etc.
Further to the additional indicators that have been added to the previously known list, we removed the following 8 indicators; as more detailed options were included instead.
Moreover, amount ranges have been replaced with the specific amounts reported in the suspicious transactions reports.
For those entities that use XML reporting, kindly consult the list of indicators on the updated XML schema technical documentation published on our website.
Kindly note that you are required to use the latest XML schema, otherwise reports submitted might fail validation.
XML Schema
MFSA Warning – Unlicensed VFA companies
Reference is made to the Transitory Period allowed in terms of Article 62 of the Virtual Financial Assets (“VFA”) Act (“the Act”), which came to an end on 31 October 2019, wherein entities were allowed to provide VFA services. Following the expiry of the transitory period, entities operating under the transitory provisions had the below options:
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If they wished to continue providing VFA services, they were required to submit to the Malta Financial Services Authority (“MFSA”) a Letter of Intent to initiate the application process for a VFA Services Licence; or
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If they did not want to continue providing VFA services, they were required to submit a cessation of activities notification to the MFSA in terms of Section 3 of the Circular to Virtual Financial Asset Service Providers.