The Malta Financial Services Authority (MFSA) and the Malta Business Registry (MBR), previously known as the Registry of Companies, have signed a Memorandum of Understanding (MoU) that provides a formal basis for cooperation between the two entities.

The new MoU, which has immediate effect, is in line with commitments made with international organisations in addressing key recommendations for enhanced levels of collaboration between local institutions.

 "This MoU ensures ongoing mutual assistance and close collaboration between the MFSA and the MBR, following the de-merger of the former Registry of Companies and the MFSA.  It reinforces the determination of our two independent institutions in our fight against financial crime by allowing us to better fulfil our designated responsibilities for combatting money laundering and terrorist financing,” commented Joseph Cuschieri, MFSA’s CEO.

On his part, MBR CEO Joseph Farrugia remarked, “This MoU on arrangements already in place for mutual access to ultimate beneficial ownership information on the respective trust and company UBO registers.  It underpins and strengthens our ongoing resolve to safeguard the corporate and financial sectors against misuse of Maltese legal entities and legal arrangements for criminal purposes, including money laundering and funding of terrorism.”

The provisions of the MoU also allow both parties to enter into further arrangements for mutual assistance such as information-sharing and other operational arrangements in specific areas of operation.

The MoU was signed by Joseph Cuschieri, Chief Executive Officer of the MFSA, on behalf of the Authority and Joseph Farrugia, Registrar and CEO of the Malta Business Registry, on behalf of the MBR.

The Maltese Business Registry (previously known at the Registry of Companies) demerged from the MFSA in April 2018 and became an independent Government Agency.

On 3rd April, 2020 the Malta Financial Services Authority (MFSA) has issued publication that the authority has rolled out a new Supervisory and Enforcement Dashboard, highlighting the key performance indicators with respect to regulatory oversight and enforcement effectiveness, with a focus on the financial regulator’s key supervisory priorities.  Further details can be found here.

The Merchant Shipping (Shipping organisations – Private Companies) Regulations (S.L. 234.42 of the Laws of Malta) (hereinafter referred to as “the Regulations”) have been recently amended by Legal Notice 31 of 2020.

In terms of these amendments, companies established under the Merchant Shipping Act (hereinafter referred to as “MSA”) are now obliged, as at end of financial year 2020, to submit audited financial statements to the Registrar of Companies, the requirements for which being almost identical to those of private limited liability companies established in terms of the Companies Act (hereinafter referred to as the “CA”). This includes the applicability of penalties as per the Eleventh Schedule of the CA in the eventuality of default. Submission must be made within 42 days from the end of the period for laying of annual accounts prescribed by Article 182 of the CA, that is, ten months after the end of the relevant accounting reference period.

The exemptions afforded to the CA companies, for example, in so far as the requirement of a directors’ report is concerned, apply also to MSA companies. The only exception relates to the thresholds as to what constitutes a ‘small company’ in terms of Article 185 of the CA. Such thresholds do not apply to MSA companies. Alternatively, a small (and hence exempt from the requirement to prepare a directors’ report) MSA company is one which does not exceed two of the below three thresholds, in terms of Regulation 64 of the amended Regulations:

• Balance sheet total € 6,000,000 (€ 4,000,000 for CA companies);

• Turnover of € 12,000,000 (€ 8,000,000 for CA companies);

• Not more than fifty employees.

Moreover, whilst the exemptions from the preparation of consolidated accounts in terms of the CA (now applicable to MSA Companies) shall apply to MSA companies in the same way, a parent company established under the MSA can qualify as a ‘small company’ in terms of the foregoing only if the group of which it is parent qualifies as a small group, that is, on a consolidation basis does not exceed the limits of two of the three following criteria:

• Aggregate balance sheet total: € 6,000,000 net or € 7,200,000 gross;

• Aggregate turnover:  € 12,000,000 net or € 14,400,000 gross.

All Articles of the CA in relation to the keeping of accounting records (and the content and form thereof), exemptions, disclosure requirements, directors’ report, audit reporting and laying of accounts before the general meeting, and submission of accounts, together with the accompanying liabilities and penalties, shall, other than the variations indicated in Regulation 64 above, be applicable to MSA companies.

The Malta Financial Services Authority (“MFSA” or “the Authority”) has become aware of emails, which appear to be scam emails, targeting persons in Malta. An individual, going by the name of Mr Andrew Yaku and claiming to work in the financial services industry outside of Malta, is contacting prospective clients via email stating to represent a high profile client "who has some funds he wants to invest outside his home country. There is need to move the funds out from the present location through bank using an individual who can invest it in a lucrative business venture."

The MFSA wishes to caution the public against replying to such emails and to refrain from providing personal details as information available to the MFSA suggests that these emails are likely to be a scheme of dubious nature with a high risk of loss of money. Furthermore, the public should therefore refrain from undertaking any business or transactions with the above-mentioned individual. The MFSA strongly advises investors and consumers of financial services that prior to making any investment or entering into any financial services transaction they should make sure that the entity with whom the investment or transaction is being made is authorised to provide such services by the MFSA or another financial services regulatory authority as applicable.

For more information on scam emails please refer to the Scam Detection Guidelines issued by the MFSA. If you are a victim of any type of financial scam or think you might be dealing with an unauthorised entity, first of all stop all transactions with the company and contact the Authority as soon as a suspicion arises.

The Malta Financial Services Authority (“MFSA” or “the Authority”) has become aware of an entity operating under the name of COINMALEX which has an internet presence at https://coinmalex.com/. Although this entity purports to operate from an address in Malta, the MFSA does not believe that this is the case. The entity claims that “Coinmalex offers trust assets management of the highest quality on the basis of profitable CryptoCurrency trading through Crypto exchanges”.

The MFSA wishes to alert the public, in Malta and abroad, that COINMALEX is NOT licenced NOR authorised by the MFSA to provide the service of an exchange or other financial services which are required to be licensed or otherwise authorised under Maltese law. Furthermore, information available to the MFSA suggests that COINMALEX is likely to be a scheme of dubious nature with a high risk of loss of money. 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 should also 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.

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 as soon as a suspicion arises.

The Malta Financial Services Authority (“MFSA” or “ the Authority”) has become aware of an entity operating under the name of Eternity Finance which has an internet presence at https://eternityfinance.io/.

The entity claims to provide a number of services, as stated in their website “Eternity Finance Investment firms operating under the Eternity Finance trademark, are leading online trading service providers, offering investment services for trading with Forex and CFDs on indices, metals, energies, stocks, bonds and cryptocurrencies”.

The Authority would like to inform the public in Malta and abroad, that Eternity Finance is NOT a Maltese registered Company NOR licensed or otherwise authorised by the MFSA to provide any investment services, forex trading, virtual assets trading or other financial services which are required to be licensed or otherwise authorised under Maltese law.

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. Financial regulations obliges licensed businesses to comply with strict legal requirements in the interest of investors and the markets. The activities of unlicensed entities are unregulated making transactions with such entities risky for consumers.

A list of MFSA licensed entities is available and can be viewed on the official website of the MFSA at https://www.mfsa.mt/financial-services-register/.

The Malta Financial Services Authority ("MFSA") has become aware of an entity operating under the name of Spring-FX Pro which has an internet presence at https://springfxpro.com/index.html. As per their website, SpringFx-Pro offers Secured Accounts, Trading Signals, Trade Assistant, Quick Payout and Forex/Crypto Currency News Update.

The Authority would like to inform the public in Malta and abroad, that SpringFx-Pro is NOT a Maltese registered Company NOR licensed or otherwise authorized by the MFSA to provide any financial services or Fintech services which are required to be licensed or otherwise authorized under Maltese law. The Entity mentions that they are regulated by the Malta Financial Services Authority followed by a Licence number. The Authority would like to reiterate that this Licence number is not linked to the entity in subject.

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. Financial regulations oblige licensed businesses to comply with strict legal requirements in the interest of investors and the markets. The activities of unlicensed entities are unregulated making transactions with such entities risky for consumers.A list of MFSA licensed entities is available and can be viewed on the official website of the MFSA at https://www.mfsa.mt/financial-services-register/

The Malta Financial Services Authority (“MFSA” or “the Authority”) has become aware of an entity by the name of MilanoMFX, which has an internet presence at https://www.milanomfx.com/.

As per their website “MilanoMFX presents itself as a leading FX platform and an ideal partner for the three fundamental figures operating in the online trading sector”. Additionally, the entity claims that “Through a partnership agreement with its investors, Milano MFX makes available to its partners a type of investment called PAW, offered by international traders with any profits and / or any already pre-established losses”. The Entity further explains that “To actively participate in a PAW investment, you simply need to open a free account and purchase credits, which will be accounted for in your account in real time”.

The Authority would like to inform the public that even though MilanoMFX is a Maltese registered company it is not authorised to provide any financial services in or from Malta. Additionally, the entity is not licensed nor registered under the Virtual Financial Assets Act (“VFA Act”).

The MFSA would like to remind consumers of financial services not to enter into any financial services transactions 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. A list of entities licensed by the MFSA can be viewed on the official website of the Authority 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 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.

Following a report in a section of the media referring to Binance as a “Malta-based cryptocurrency” company, the Malta Financial Services Authority (MFSA) reiterates that Binance is not authorised by the MFSA to operate in the crypto currency sphere and is therefore not subject to regulatory oversight by the MFSA. The Authority is however assessing if Binance has any activities in Malta which may not fall within the realm of regulatory oversight. Admission of virtual financial assets to trading and/or for offering virtual financial assets to the public in and from Malta requires an MFSA licence in terms of the Virtual Financial Assets Act (CAP 590) of 2018.

The Malta Financial Services Authority ("MFSA" or "the Authority") has become aware on an entity by the name of AlphaEx which has an internet presence at https://www.alphaex.net/

The entity is claiming to be A secure & dependable trading platform, AlphaEx is created for competent investors, businesses, and everyone, who wants to purchase or sell XDC, Ether and Bitcoin worldwide Additionally, the entity claims that it is Registered & Gained Transitoy Licence under MFSA. (sic)

The Authority would like to inform the public that AlphaEx is NOT a Maltese registered company NOR is it authorised to provide any financial services in or from Malta. Additionally, the entity is not licensed nor registered under the Virtual Financial Services Act .

The MFSA would like to remind consumers of financial services not to enter into any financial services transactions 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. A list of entities licensed by the MFSA can be viewed on the official website of the Authority 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 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.