MFSA issues €926,485 in administrative penalties in 2024

Against a backdrop of global uncertainty and technological transformation, Malta’s financial services sector has not only demonstrated resilience but also continued its steady growth.

The Malta Financial Services Authority (MFSA)’s Annual Report for 2024, published on 16th June 2025, reflects a regulatory ecosystem that is adapting to new challenges while safeguarding market integrity and consumer trust.

Sector continues growth

According to the report, financial services now account for 8.2 per cent of Malta’s real Gross Value Added (GVA) – an increase of 0.2 percentage points over 2023. Employment in the sector has also grown significantly, with 14,745 individuals employed as of October 2024, representing 5.1 per cent of Malta’s total gainfully employed population. Since 2020, the sector’s workforce has expanded by 21.6 per cent, showing strong investor confidence and sustained demand for financial expertise.

2024 was marked by a surge in regulatory activity. The MFSA recorded a 33 per cent year-on-year increase in supervisory interactions, signalling a more engaged approach to oversight. The Authority undertook 134 enforcement actions, issued €926,485 in administrative penalties, along with 49 public warnings and five consumer notices. These actions highlight the MFSA’s increasingly proactive role in upholding transparency, governance, and investor protection.

Strategic reforms and outcomes-based supervision

The MFSA initiated a Compliance Outcomes-Based supervisory model, piloted across three functions in 2024 and set to be fully implemented across the sector in 2025. This model shifts the emphasis from compliance volume to the quality and long-term impact of regulatory interventions.

Additionally, the MFSA strengthened its digital infrastructure with the rollout of the Supervisory Cycle Management System (SCMS) and the Harmonised Regulatory Reporting Framework (HRRF), designed to streamline oversight, data governance, and reduce administrative burdens for financial entities.

Innovation, ESG, and the capital markets push

The report also shows that the MFSA continues to focus on sustainability and digital innovation. Through various outreach campaigns and technical engagement, the Authority sought to combat greenwashing, improve consumer understanding of ESG products, and foster responsible capital market participation. Still, limited growth in the investment funds segment and a concentration of capital markets in a few sectors remain challenges, prompting the MFSA to advocate for diversification into technology, R&D, and manufacturing.

The Authority also introduced a Postgraduate Diploma in Financial Regulation and Compliance, in collaboration with the University of Malta, to support upskilling and foster specialised local talent.

International collaboration and financial stability

The MFSA deepened its international engagement, participating in over 150 global forums and collaborating with EU institutions and regulators. As Malta’s National Resolution Authority, it worked closely with the Single Resolution Board and European Banking Authority to strengthen crisis preparedness and banking resolution frameworks.

Efforts to combat financial crime were equally robust. Seven AML-related reports were escalated to the FIAU in 2024, and the MFSA continued aligning with evolving EU-wide frameworks including DORA, MiCA, and CSRD.

Internally, the Authority invested heavily in its workforce. With a 15.8 per cent increase in full-time equivalent employees and 24,600 training hours delivered, the MFSA has prioritised upskilling through its Financial Supervisors Academy. It also modernised HR operations through a new digital HRIS system and relocated 250 employees to a new Watercourse workspace designed for collaboration and wellbeing.

Looking ahead to 2025, the MFSA has pledged to maintain its focus on cybersecurity, operational resilience, financial inclusion, and capital markets diversification. Its roadmap also emphasises continued collaboration with stakeholders to support innovation, financial literacy, and broader economic engagement.

Chairman Jesmond Gatt summed up the MFSA’s direction: “We remain committed to our vision: A financial system that works for everyone.”

For more information, the full report is available on the MFSA’s website.