Malta scales back foreign licence AML reforms after industry pushback

The Malta Gaming Authority is pulling back on planned reforms to its foreign licence recognition framework after operators pushed back on several key proposals.

According to a Feedback Statement dated 26 October the MGA has softened or scrapped a number of measures originally floated in an April consultation.

The changes affect Recognition Notices, or RNs, which allow gambling companies based in Malta to operate using licences from EU/EEA or equivalent jurisdictions without obtaining a full MGA licence.

The 2023 National Risk Assessment classified the residual risk from RNs as “medium-high”, above the assessed total for both online and land-based gaming. That finding triggered the reform effort as part of Malta's National AML/CFT Strategy 2024-2026.

Industry stakeholders argued the original proposals were disproportionate and operationally impractical. The MGA acknowledged that feedback was “The feedback received was constructive and valuable,” and that stakeholders “Stakeholders generally supported the overall direction of the proposed enhancements whilst emphasising the importance of proportionality, operational practicality, and avoiding unnecessary duplication with requirements imposed by foreign licensing authorities.”.

The regulator dropped a requirement for a full corporate structure chart, settling instead for UBO information. B2B suppliers were exempted from many obligations after arguments that consumer-facing checks did not apply to them.

A standardised legal opinion template was scrapped entirely because different countries' legal systems could not fit a single format. The MGA also abandoned a demand for five years of regulatory correspondence, asking instead only for material fitness and licensing matters.

Operators pushed back on providing annual deposit values and volumes, citing commercial sensitivity. The MGA agreed to accept predefined bands rather than precise numbers. Payment methods will now be aggregated into categories instead of listed individually.

The MGA said “As set out in this feedback statement, the Authority has reconsidered and refined a number of its original proposals to address concerns relating to proportionality, operational implementation, commercial sensitivity and potential duplication with the oversight exercised by foreign licensing authorities. “The final framework will therefore adopt a more differentiated approach between B2B and B2C RN holders, place greater emphasis on risk-based engagement, and rely on targeted information gathering that supports clearly defined regulatory, policy and risk-assessment objectives.” and “The MGA remains committed to maintaining an RN framework that supports effective oversight, regulatory cooperation and informed decision-making while remaining proportionate, risk-based and responsive to the realities of the sectors and operators it serves.”.

Some stakeholders questioned whether the MGA even has the statutory authority to request certain information. The regulator acknowledged that some new RN requirements may require legislative amendments.

The MGA will begin collecting information from foreign licence-holders this year, covering the 2025 reporting period, limited to B2C operators. By 2021, 111 Malta-incorporated gaming companies operated under RNs, including 46 B2C operators.

The outcome signals that Malta's regulatory direction remains sensitive to industry concerns, even as the jurisdiction works to address AML vulnerabilities flagged in national assessments.