The Malta Financial Services Authority (MFSA) has issued its Supervisory Priorities for 2026, setting out the Authority’s key areas of focus for the year ahead. The priorities reaffirm the MFSA’s commitment to safeguarding market integrity, enhancing consumer outcomes and ensuring continued alignment with EU regulatory developments. The Authority’s seven supervisory pillars remain unchanged: Resilience of Supervised Entities, Sustainable Finance, Digital Finance, Governance, Risk & Compliance, Financial Crime Compliance, Consumer Protection & Education, and Cross-Border Supervision.
At BDO Malta, we are closely monitoring these developments and supporting clients in assessing their readiness and strengthening their control frameworks in line with regulatory expectations.
Our Internal Audit services are designed to align internal audit plans with the MFSA’s supervisory priorities, ensuring assurance coverage over key regulatory risk areas while providing independent challenge on governance, risk management, and control effectiveness in line with evolving supervisory expectations.
Financial Crime Compliance – A Heightened Supervisory Focus
Financial Crime Compliance remains a central supervisory priority for the MFSA in 2026. The Authority will intensify scrutiny of anti-money laundering and counter-financing of terrorism measures, sanctions compliance, and controls against proliferation financing in alignment with, Supervisory efforts will emphasise risk-based assessment and the effectiveness of controls, including deeper review of MLRO effectiveness, governance arrangements, risk assessments, customer screening processes and transaction monitoring systems. This work will be supported by strengthened cooperation with national and EU authorities and is designed to ensure that supervised entities maintain proportionate, well-resourced frameworks capable of delivering robust prevention outcomes.
Our Regulatory & Compliance Services team works closely with boards and compliance functions to ensure that frameworks remain proportionate, robust and aligned with MFSA expectations. team works closely with boards and compliance functions to ensure governance, policies, risk assessments and operational controls remain proportionate, comprehensive and aligned with the MFSA’s expectations for effective financial crime prevention.
Consumer Protection and Conduct Supervision
Consumer protection continues to be a core priority. Boards are expected to demonstrate oversight of conduct risk and ensure that customer outcomes are central to product governance frameworks.
BDO Malta supports firms in conducting risk assessments, policy and disclosure documentation reviews.
Digital Finance, MiCA and DORA
Digital finance will remain a core area of supervisory activity in 2026, with the MFSA sharpening its focus on the evolving EU regulatory framework. In particular, the Authority will continue to oversee the transition of Virtual Asset Service Providers (VASPs) to Crypto‑Asset Service Providers (CASPs) under MiCA, ensuring that business models, governance and controls are aligned with the new regime. Supervisors will also be monitoring firms’ preparedness for PSD3 and assessing ICT and cyber‑resilience frameworks in line with DORA, signalling continued heightened expectations around operational resilience and technology risk management.
BDO Malta provides Technology Advisory and supports firms navigating EU digital regulatory frameworks related to MiCA readiness, CASP authorisation support, DORA gap assessments, as well as cybersecurity.
Proportionate oversight of AI use
Recognising the growing use of artificial intelligence across financial services, the MFSA will monitor AI adoption on a proportionate basis, rather than through a one‑size‑fits‑all approach. The Authority has made clear that its supervisory lens will concentrate on governance, internal controls and the potential impact of AI‑enabled tools on consumers. Areas of attention will include AI applications used in creditworthiness assessments, monitoring tools and operational efficiency solutions, where inappropriate design or weak oversight could lead to unfair outcomes, mis‑selling or opaque decision‑making.
BDO Malta guides Financial Institutions on AI adoption, supporting innovation while ensuring safety and compliance.
Cross-Border Supervision and EU Alignment
Cross-border supervision remains integral and the Authority will continue strengthening its collaboration with its counterparts, across jurisdictions.
BDO Malta supports businesses in navigating increasing cross-border supervision and alignment with EU Directives and Regulations, particularly in the financial, fintech, and digital sectors.
Preparing for 2026
The MFSA encourages boards to assess their preparedness for 2026 at a strategic level. At BDO Malta, we work closely with boards, and help organisations strengthen resilience, maintain regulatory confidence and operate sustainably within an evolving supervisory landscape.
Our multidisciplinary expertise enables firms to respond confidently while maintaining strategic focus and operational efficiency. Should you wish to discuss how the 2026 Supervisory Priorities may impact your organisation, our specialists will be pleased to assist.