MGA reportedly withdraws proposed Recognition Notice changes in Malta
Regulation1 min read
The MGA reportedly abandoned several proposed amendments to Malta’s Recognition Notice framework, according to a media report. The regulator said its final approach would distinguish B2B and B2C businesses and use targeted, risk-based information gathering; it plans to continue consultations with foreign licence holders.
A recent report by Next.io states that the regulator has dropped multiple proposed changes to the Recognition Notice framework for the region. Even so, the authority intends to keep seeking input from holders of foreign licences and to collect more recommendations, according to the report.
In April, the MGA opened a consultation tied to the island's National AML/CFT Strategy for 2024–2026. Broader corporate disclosures, richer financial detail and a standardised legal opinion for applications from foreign licensees were among the ideas first put forward. The authority conceded that some of what it proposed could not be achieved unless the current framework were amended. Malta was placed on the Financial Action Task Force gray list in 2021 and left it a year later, yet it is still working to restore its public image.
According to the authority, the approach it settles on will draw a clear line between B2B and B2C operations and will gather information in a targeted, risk-based way. The authority argues that the revisions will improve supervision while avoiding needless burdens on firms that foreign regulators already oversee. Notwithstanding the reversal, the regulator intends to begin gathering information during the current year, with attention on B2C Recognition Notice holders for the 2025 reporting period.