TITLE: Malta Financial Services Authority Publishes Supervisory Priorities for 2026 Emphasising Financial Crime Compliance and Consumer Protection
BODY:
On February 24, 2026, the Malta Financial Services Authority (MFSA) published its Supervisory Priorities for 2026, outlining its key regulatory focus areas for the coming year. The priorities are structured around seven supervisory pillars: Resilience of Supervised Entities, Sustainable Finance, Digital Finance, Governance Risk & Compliance, Financial Crime Compliance, Consumer Protection & Education, and Cross-Border Supervision.
Financial Crime Compliance has been designated as a central priority for 2026. The MFSA will intensify its supervisory work on anti-money laundering and counter-terrorism financing (AML/CTF), sanctions compliance, and proliferation financing controls, aligning with the new EU AML legislative package. The Authority will deepen its review of money laundering reporting officer (MLRO) effectiveness, governance arrangements, risk assessments, customer screening processes, and transaction monitoring systems across all sectors, including Financial Institutions and Crypto-Asset Service Providers.
Consumer protection remains a major supervisory focus, with the MFSA continuing work on value-for-money assessments, transparent disclosures, fair treatment of vulnerable consumers, and improvements to credit and insurance information quality. The Authority will oversee implementation of Malta's pension auto-enrolment framework and expand financial education initiatives.
In Digital Finance, the MFSA will monitor the transition of Virtual Asset Service Providers (VASPs) to Crypto-Asset Service Providers (CASPs) under the Markets in Crypto-Assets Regulation (MiCA), assess readiness for the revised Payment Services Directive (PSD3), and evaluate information and communications technology (ICT) and cyber-resilience frameworks under the Digital Operational Resilience Act (DORA). The Authority will also monitor artificial intelligence adoption proportionately, focusing on governance, internal controls, and consumer impact.
The MFSA encourages all supervised entities to review the 2026 priorities at board level and assess their preparedness accordingly.
REFERENCES:
Malta Financial Services Authority (2026). Supervisory Priorities for 2026. Available at: https://www.mfsa.mt/