The Malta Financial Services Authority (“MFSA” or “the Authority”) has decided to proceed with the withdrawal of the Institution’s licence and with imposing the following directives:

[i] to proceed with returning all clients’ funds held by the Institution according to the timelines indicated by the MFSA; and

[ii] to report to the MFSA on the progress made on the return of clients’ funds.

Address:

Corporate & Commercial FX Services Limited
Level 1,
1A, St. Mark Street,
Valletta VLT 1364
Malta

Business Activity: Payment services as defined in the Second Schedule of the Financial Institutions Act.

BREACHES

The MFSA determined that the Company failed to adhere its obligations in terms of the following:

[i] Article 5(1)(b) of the Financial Institutions Act (“the Act”) as the Institution failed to comply with its on-going conditional requirement to have at least two individuals who are effectively directing the business of the Institution in Malta;

[ii] Article 5(1)(c) of the Act as it failed to ensure and maintain an internal governance structure necessary for the undertaking of its activities and to ensure that effective procedures are in place to identify and manage the risks to which it is or might be exposed;

[iii] Article 24A(b) of the Act, in view of the conflicting statements provided to the Authority with respect to the Institution’s decision to suspend all its operation and consequently, the Institution is considered to be in breach of Article 5(1)(d) of the Act; and

[iv] The Institution has repeatedly failed to submit to the MFSA the Audited Financial Statements, the Auditor’s Management Letters and the Statutory returns within the prescribed time frames in terms of Articles 14 and 17B of the Act and paragraph 35 of FIR/02 on ‘Supervisory and Regulatory Requirements of Institutions authorised under the Financial Institutions Act 1994’.

REGULATORY ACTION

On 7 August 2020, the MFSA decided to withdraw the Institution’s licence in terms of Article 6(1)(d) and (i) of the Act and with imposing the following directives in terms of Article 7B of the Act:

[i] to proceed with returning all clients’ funds held by the Institution according to the timelines indicated by the MFSA; and

[ii] to report to the MFSA on the progress made on the return of clients’ funds.

It should be noted that the MFSA’s decision to withdraw the Institution’s licence shall not become operative until the expiration of the period within which an appeal lies. If an appeal is made within such period, the withdrawal shall become operative on the date of the decision of the Tribunal dismissing the appeal or the date on which the appeal is abandoned.

PUBLICATION

This notice is being published as part of the Authority’s standard enforcement policy and in terms of Article 16(8) of the Malta Financial Services Authority Act and Article 6(9) and Article 7B(4) of the Act.

UPDATE ON 4 SEPTEMBER 2020

The Authority’s decision was appealed before the Financial Services Tribunal within the period established by law.