meta_id 3211186

On June 3, 2026, the Malta Financial Services Authority (MFSA) published notice of a settlement agreement with a financial institution following an investigation into supervisory failings. The MFSA's investigation identified several breaches of regulatory requirements. The financial institution failed to submit Annual Audited Financial Statements for the financial years 2022 and 2023 by the stipulated regulatory deadline, as required by Article 17(b) of the Financial Institution Act (FIA). The institution also failed to submit the Auditor's Management Letter for the financial year 2022 by the required deadline under Paragraph 35 of the Financial Institution Regulations (FIR/02), and did not submit the Auditor's Management Letter for the financial year 2023 by the stipulated deadline, also contrary to Paragraph 35 of the FIR/02. On June 2, 2026, the MFSA agreed to settle all pending matters with the financial institution following a demonstration of goodwill. Under the settlement agreement, the MFSA imposed an administrative penalty of €4,200 on the financial institution. The settlement represents the Authority's resolution of the supervisory engagement and enforcement action relating to these reporting failures. The MFSA published this notice in accordance with its Settlement Policy, which governs the publication of enforcement outcomes and administrative penalties imposed on regulated entities. The settlement applies to all financial institutions regulated by the MFSA under the FIA and underscores the Authority's expectation that regulated entities comply with timely submission requirements for audited financial statements and auditor management letters.