Four financial institutions break rules, face enforcement

Four financial institutions faced enforcement action by the industry watchdog in August after they were found in breach of a number of rules and regulations.

According to a newsletter issued on Monday, the Malta Financial Services Authority launched enforcement proceedings against four local operators this month, levying fines of €15,000 each on two entities and stripping the other two of their licenses.

ARQ Fiduciaries Ltd and Grand Harbour Trustees Ltd, were fined for breaching the Trust and Trustees Act.

Grand Harbour Ltd had breached three articles of the act, while ARQ Fiduciaries Ltd failed to submit the declaration of beneficial ownership for trusts which generated tax consequences.

AYN Limited, a payment services provider, had its licence withdrawn due to a failure to adhere to pre-licensing conditions set by the authority, which require the engagement of an operations manager and a risk manager.

The appointment of the external auditor and the submission of the relevant outsourcing service agreement, as well as the engagement of internal auditor, also needed to be announced.

Corporate & Commercial FX Services Limited, another payment services provider, also had its licence removed after the MFSA found it had failed to comply with its ongoing conditional requirement to have at least two individuals direct its Malta business operations.

The company also failed to ensure and maintain an internal governance and risk landscape, the MFSA said. It had also repeatedly failed to submit its audited financial statements to the watchdog.

With the removal of the licence, Corporate & Commercial FX Services Limited is now obliged to proceed with returning all clients’ funds according to the timelines indicated by the MFSA.