MFSA launches public-private partnership to tackle rising financial fraud risks

Malta’s financial watchdog is stepping up efforts to combat increasingly sophisticated fraud, with the Malta Financial Services Authority (MFSA) establishing a new public-private partnership aimed at strengthening detection, prevention and disruption across the financial system.

The initiative brings together key authorities including the Malta Police Force, the Office of the Arbiter for Financial Services, the Financial Intelligence Analysis Unit, and the Central Bank of Malta, alongside private sector participants such as the Malta Bankers’ Association and retail-focused credit institutions.

The first meeting of the partnership was held on 8th April 2026 at the MFSA’s premises, marking what the regulator described as a “significant step” in national coordination against financial crime.

Coordinated response to evolving fraud threats

The partnership is being led by the MFSA’s Financial Crime Compliance function and is designed to create a structured framework for cooperation between public authorities and industry players.

At its core is the systematic sharing of intelligence on fraud typologies, emerging threats and sector vulnerabilities – an area that has become increasingly critical as fraud schemes grow more complex and digitally driven.

MFSA CEO Kenneth Farrugia said the initiative aims to enable earlier identification of risks and a more coordinated response.

“This Public-Private Partnership represents an important milestone in strengthening Malta’s collective response to financial fraud,” he said, noting that improved information-sharing and collaboration are key to safeguarding consumers and maintaining financial system integrity.

In its first phase, the partnership will prioritise consumer retail payment fraud, particularly unauthorised transactions and cases involving social engineering – where individuals are manipulated into transferring funds to fraudsters.

This reflects both local trends and broader developments across Europe, where payment fraud has become a growing concern for regulators and financial institutions alike.

The initiative is structured around four main pillars:

• Information sharing
• Enhanced cooperation and coordination
• Guidance and outreach
• Policy development and targeted supervisory action

Members will contribute insights based on operational experience, while operating within strict confidentiality and data protection safeguards.

As part of its remit, the partnership is expected to publish a guidance paper aimed at improving consumer awareness and strengthening protections against fraud.

It will also support typology workshops, awareness campaigns and policy discussions intended to improve the resilience of Malta’s financial system.