MGA and MFSA sign MoU to improve compliance efforts

The Malta Gaming Authority (MGA) and the Malta Financial Services Authority (MFSA) have formalised a new bilateral Memorandum of Understanding (MoU), representing a significant advancement in coordinated regulatory efforts between the two entities overseeing Malta’s gaming and financial sectors. The formal agreement is expected to improve coordination, expand shared enforcement efforts, and foster joint professional development, ultimately contributing to more effective governance across both sectors.

The agreement, signed in mid-2025, represents a notable institutional alignment between two of Malta’s key regulatory agencies. Both the MGA and MFSA play pivotal roles in safeguarding integrity and compliance in their respective domains — the gaming industry and the financial services sector. Given the increasing convergence of risks across financial and gambling sectors, particularly around anti-money laundering (AML), counter-terrorist financing (CFT), and emerging technologies, the need for robust inter-agency cooperation has become more apparent than ever.

Objectives of the bilateral agreement

The newly signed MoU builds upon existing regulatory frameworks but takes the relationship between the two authorities into a more structured and comprehensive direction. While the MGA and MFSA have historically collaborated through a broader multi-agency framework, this bilateral agreement allows for a more focused and operationally agile approach to key areas of concern.

Among the agreement’s core objectives are:

• A more structured and frequent exchange of supervisory information
• Strengthening mutual enforcement efforts where overlapping interests exist
• Establishing joint training programs and knowledge-sharing initiatives
• Enhancing the supervisory capacity of both authorities
• Expanding cooperation beyond traditional AML/CFT mandates

This agreement functions alongside the existing multi-agency collaboration framework, which continues to involve the Financial Intelligence Analysis Unit (FIAU), the Sanctions Monitoring Board, the MFSA, and the MGA. That broader framework primarily governs collaboration on AML, CFT, and the prevention of financing the proliferation of weapons. Instead, the new bilateral MoU supplements these arrangements by focusing on emerging regulatory challenges that fall outside strict AML/CFT paradigms, including supervisory technology, fintech integration, and cross-sectoral due diligence.

Emphasis on training and professional development

One of the most significant features of the agreement is its focus on human capital — specifically, the joint development of training and educational initiatives. These are aimed at improving the competencies of regulatory staff operating in increasingly complex and overlapping environments.

As the financial and gambling sectors become more digitized, the technical requirements and regulatory expectations for supervisory staff also increase. The MoU therefore commits both authorities to cooperate on:

• Designing and delivering cross-sectoral training programs
• Conducting joint seminars and workshops
• Facilitating staff secondments or exchanges for on-the-ground experience
• Creating knowledge hubs and regulatory resource-sharing tools

Such initiatives aim to upskill the personnel responsible for conducting due diligence, market surveillance, enforcement, and risk assessment — all of which require sophisticated understanding of both financial services and gaming operations.

Statements from leadership

In formal remarks made during the announcement of the agreement, the heads of both institutions highlighted the strategic value of the MoU.

Charles Mizzi, Chief Executive Officer of the Malta Gaming Authority, commented:

“This agreement marks another step forward in our commitment to strengthening inter-agency collaboration. The relationship between the MGA and the MFSA is an important one, and through this MoU we are not only enhancing the exchange of information but also fostering a shared commitment to high regulatory standards and professional development.”

Mizzi’s statement reflects the MGA’s wider strategic push to not only maintain Malta’s reputation as a trustworthy gaming jurisdiction but also to align with international regulatory best practices.

Kenneth Farrugia, Chief Executive Officer of the Malta Financial Services Authority, echoed these sentiments:

“The MoU that the MFSA entered into with the MGA is a reflection of our commitment and dedicated efforts to strengthen ties with other local authorities, as we continue to recognise the value of inter-institutional collaboration. This agreement enhances our mutual cooperation on due diligence and enforcement, which is essential in view of the similar players in the respective industries that we regulate and serve.”

Farrugia further noted that the agreement goes beyond operational coordination. It signifies a shared institutional culture committed to raising the bar of supervision and regulatory alignment.

A response to evolving cross-sector risks

The timing of the MoU is no coincidence. In recent years, there has been increasing recognition that gambling operators and financial institutions are facing similar risk vectors — from digital money laundering schemes to the use of crypto assets and fraudulent licensing structures. As such, regulators are being urged by both domestic and international observers to bridge gaps in oversight and improve their ability to act in concert.

Malta, as a jurisdiction, has come under international scrutiny in the past regarding its approach to financial and gaming regulation. However, significant strides have been made in improving transparency and compliance frameworks, including amendments to its Gaming Act and increased resourcing at the MFSA. This MoU therefore serves as both a practical and symbolic measure, demonstrating that Maltese authorities are proactively addressing cross-sectoral challenges.

Complementing recent regulatory activity

The MoU also arrives shortly after the MGA’s publication of its 2024 annual report, which included key performance indicators of the regulator’s work. The report highlighted €84.1 million in total revenue, reflecting the authority's expanding role in the gaming industry. It also reported:

• The issuance of 17 new gaming licenses
• 25 administrative fines issued to non-compliant operators
• Enhanced audit procedures and operator assessments
• Stronger controls on responsible gaming obligations

These statistics underscore the MGA’s continued emphasis on compliance, enforcement, and public trust. The new bilateral MoU strengthens that direction by improving coordination with the financial regulator, whose purview includes vetting operators’ financial backgrounds, ownership structures, and funding sources.

Implications for licensees and industry stakeholders

For operators and stakeholders within the financial services and gaming industries, the implications of this MoU are far-reaching. Companies licensed by either the MGA or MFSA — or both — will likely experience heightened regulatory scrutiny, improved information sharing between regulators, and potentially faster responses to non-compliance.

Additionally, licensees may find themselves subject to joint inspections, harmonized due diligence procedures, and increased obligations to demonstrate transparency across sectors. This could include:

• More comprehensive source-of-funds verifications
• Cross-referencing of beneficial ownership disclosures
• Tighter KYC (Know Your Customer) expectations
• Greater scrutiny of marketing and promotional practices

However, industry observers have generally welcomed the development, seeing it as a move toward a more stable and credible regulatory environment that benefits compliant operators while deterring bad actors.

Looking ahead

The MoU between the MGA and MFSA reflects a growing trend among regulatory bodies around the world to formalize cooperation and build bridges across jurisdictional boundaries. As financial and gaming ecosystems continue to intersect — particularly through the use of online platforms, virtual assets, and digital payments — regulators must innovate and collaborate accordingly.

While the full operational impact of the agreement will unfold over time, the formal signing sets a clear tone: Malta intends to remain a modern and adaptive regulatory environment. The MoU is not merely a statement of intent but a blueprint for more agile, effective, and accountable supervision in sectors where public trust and financial integrity are critical.

Conclusion

The formalisation of the bilateral Memorandum of Understanding between the Malta Gaming Authority and the Malta Financial Services Authority represents a significant development in strengthening Malta’s regulatory oversight and governance framework. By committing to deeper collaboration, structured information sharing, and joint professional development, both authorities are addressing the increasing interconnectivity and complexity of the financial and gaming sectors.

This agreement reinforces Malta’s strategic intent to uphold high regulatory standards while also fostering a culture of cooperation and adaptability. In an era where compliance risks are no longer confined to single sectors, such cross-institutional coordination is not only prudent but essential.

For stakeholders, this development signals greater regulatory clarity, stronger institutional oversight, and a shared commitment to protecting the integrity of Malta’s financial and gaming ecosystems. By investing in their human capital and enhancing operational synergies, the MGA and MFSA are laying the foundation for a more transparent, accountable, and resilient regulatory environment — one that meets both domestic needs and international expectations.

FAQs

What is the purpose of the new MoU between the MGA and MFSA?
The MoU aims to strengthen regulatory cooperation between Malta's two main supervisory authorities by improving information exchange, joint enforcement, and staff training.

Does this MoU replace previous cooperation frameworks?
No, it supplements existing multi-party agreements, particularly those focused on AML and CFT, by broadening the areas of collaboration.

What sectors are affected by this agreement?
The agreement primarily impacts Malta's gaming and financial services sectors, especially where entities operate across both regulatory domains.

Will companies licensed by both regulators face new obligations?
They may experience closer scrutiny and enhanced due diligence requirements as a result of improved information sharing between the authorities.

How does this benefit regulatory staff?
The MoU introduces joint training and education programs to enhance supervisory skills, particularly in overlapping regulatory areas.

Why is this agreement significant now?
With growing convergence in financial and gaming risks, regulators must work together to address shared threats such as money laundering and digital fraud.

How does this MoU align with international expectations?
It reflects global best practices in cross-agency regulatory cooperation and supports Malta's efforts to maintain international credibility.

Will this lead to more enforcement actions?
Potentially yes, as the agreement facilitates faster and more coordinated responses to violations and non-compliance.

What was highlighted in the MGA's 2024 annual report?
The MGA reported €84.1 million in revenue, issued 17 new licences, and imposed 25 administrative fines, indicating increased regulatory activity.

Is this MoU legally binding?
While formal in nature, MoUs typically set out operational commitments rather than enforceable legal obligations; however, they often lead to concrete regulatory actions.