The Malta Financial Services Authority (MFSA) and the Financial Intelligence Analysis Unit (FIAU) have joined forces and recently issued a consultation document providing guidance for credit institutions, payment institutions and electronic money institutions opening accounts for FinTechs. The guidance encourages the formulation of more thorough risk-assessment measures, controls and policies and complements their due diligence procedures.
Industry participants have been invited, via the consultation document, to submit their feedback in relation to the guidance document by 30 April 2019.
The terms FinTechs or FinTech Operators incorporates all those persons operating in the financial services sector and utilising smart contracts, AI, DLT and cloud technologies for the development of a financial product to provide a financial service.
The consultation paper is split into five different titles. Title 1 is a general description of the paper’s scope and application. Title 2 provides guidance for credit institutions, payment institutions and electronic money institutions opening accounts for FinTechs. Title 3 sets out the supplementary guidance for credit institutions, payment institutions and electronic money institutions opening accounts for issuers of DLT assets. Title 4 provides guidance for opening accounts for FinTechs, specifically those which are authorised or seeking to be authorised by the MFSA as VFA service providers. Title 5 provides insight for credit institutions, payment institutions and electronic money institutions opening accounts for FinTechs accepting DLT assets as a means of payment.
The consultation paper also provides specific guidance for credit, payment and electronic money institutions; FinTechs acting as a DLT exchange; VFA service providers; and FinTechs accepting DLT assets as a means of payment.
Click here to read the full article by Gaby Zammit of Ally Law member WH Partners.
