Malta: Regulatory Compliance (Video)

Compliance Obligations

Compliance relates to an organisation's obligation and ability to develop and implement internal control systems, designed to comprehensively lead it through an ever-demanding regulatory landscape, in support of the company's business objectives. Lack of effective compliance puts the entire business at serious risk of regulatory breach, non-compliance or attracting enforcement action by the regulator, possibly leading to loss of reputation, business and or license. On the other hand, a tailored compliance function adds essential value to effective controls and monitoring mechanisms, which result in the required good governance of a company.

The Compliance Officer

Licence Holders of licensable activities issued by the Malta Financial Services Authority would require the appointment of a Compliance Officer.

The Compliance Officer would need to:

• design and implement an effective compliance function;
• ensure there is an up-to-date assessment of the risk in place and have and effective monitoring programme implemented;
• identify compliance and regulatory risks inherent in the business;
• establish effective reporting system which enables appropriate and timely reporting of matters to both the Board and the regulator/relevant regulatory body;
• setup robust compliance system and controls;
• provide the appropriate compliance training to promote awareness of relevant legislation and compliance culture within the entire business;
• have an effective system in place which:
  • adequately assesses the risk posed by regulated business;
  • monitors and to evaluates the adequacy and effectiveness of the measures and procedures put in place by the business;
  • assesses the impacts of employee behaviours on effective regulatory compliance;
  • assesses the seriousness of each breach and respond proportionately;
  • evaluates the effectiveness of the complaint-handling procedure;
  • establishes an appropriate breach reporting and monitoring procedure;
  • quantifies and evaluates compliance risks inherent in the business, to assess the likelihood and severity of the probable impact should the risk materialise;
  • designs and maintains a compliance manual and policies and procedures, which cover all the licensable activities being offered by the business;
  • reports compliance-related findings and business recommendations to the board;
  • provides planned advice when potential and current changes, updates, amendments are known and impact analysis of any developments on the business;
  • manages change driven by regulatory requirements.

Our Regulatory Compliance Support

While the cost of compliance seems high, non-compliance with legal and regulatory requirements is significantly higher and may consequently affect consumer confidence in the specific business or sector, as well as the jurisdiction as a whole. At CSB Group, we support businesses in their effort to build the necessary compliance capacity to fulfil their obligations and safely proceed with the attainment of their strategic objectives.

CSB Group's compliance services include:

• designing and implementing compliance monitoring programmes;
• drafting customised policies, manuals and procedures in line with regulations;
• conducting investigations into regulatory or compliance breaches;
• reviewing and assessing policies, manuals and procedures according to regulatory changes;
• supporting with the anticipation of compliance impacts of regulatory change;
• assisting and providing tailor-made training solutions in universal compliance topics, such as AML/CFT and GDPR
• assisting with the preparation for and response to regulatory onsite inspections and drafting of action plans in this regard;
• conducting client-specific or business-wide compliance reviews
• supporting organisations with the drafting of Business Risk Assessments.