The Malta Financial Services Authority launched enforcement proceedings against four entities in the month of August, levying fines of €15,000 each on two entities and stripping the other two of their licences.

The information was outlined in a periodic newsletter published by the regulator to update the public on the state’s fight against financial crime.

In the newsletter, it was reported that ARQ Fiduciaries Ltd and Grand Harbour Trustees Ltd, were fined for breaching the Trust and Trustees Act (Register of Beneficial Owners) Regulations.

Grand Harbour Ltd had breached three articles of the Act, whilst ARQ Fiduciaries Ltd failed to submit the declaration of beneficial ownership for trusts which generated tax consequences, and for which the Company acted as a trustee, the MFSA said.

AYN Limited, a payment services provider, had its licence withdrawn due to a failure to adhere to pre-licensing conditions set by the MFSA, which require the engagement of an Operations Manager and a Risk Manager respectively, as well as the timely confirmation of the appointment of the external auditor and the submission of the relevant outsourcing service agreement, as well as the engagement of internal auditor.

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 on-going conditional requirement to have at least two individuals who are effectively directing the business of the Institution based in Malta; failed to ensure and maintain an internal governance and risk; and had repeatedly failed to submit its Audited Financial Statements to the MFSA, the Auditor’s Management Letters and the Statutory returns within the prescribed time frames."

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

The MFSA also announced a decision to revoke MPM Capital Investments Limited’s investment services licence over the provision of unauthorised payment services. The decision comes into effect once the time-period for appeals expires, assuming the decision is not appealed.