MFSA reports dismal financial results

Malta’s financial regulator, the MFSA, reported a massive loss of €4.6 million in 2024, despite its substantial multi-million-euro subvention from state coffers, according to the latest financial report issued a few days ago.

The new data, published during a press conference including CEO Kenneth Farrugia, showed that, compared to 2023 (a surplus of €2.3 million), the regulator’s finances have experienced a significant downturn. No mention of the massive losses was made during the press conference.

In 2019, then-MFSA CEO Joseph Cuschieri, later forced to resign due to wrongdoing, publicly stated that the MFSA would achieve financial independence within five years, thereby eliminating the need for government assistance.

This plan fell apart, as despite receiving a government subsidy of €17.7 million in 2024, the MFSA still recorded a loss of €4.6 million.

CEO Kenneth Farrugia, appointed by Finance Minister Clyde Caruana, receives an annual package of €175,000 as CEO of the MFSA. He was also appointed Chairman of the Financial Intelligence Analysis Unit (FIAU). He is notably associated with Malta’s greylisting by the Financial Action Task Force (FATF) during his time as FIAU CEO.

The Executive Committee members of the MFSA, responsible for the dismal financial results, each earn a package of over €120,000 and still includes Edwina Licari, who, together with the former disgraced CEO, travelled to Las Vegas on a trip financed by businessman Yorgen Fenech.

Following Malta’s greylisting, the MFSA embarked on a marketing initiative to rebrand itself. Christine Cachia, a former member of Robert Abela’s private secretariat, was chosen as the head of communications for the Authority, aiming to improve public perception of the MFSA amid its failures and scandals. This reputation management project is being executed by a UK-based company that was awarded a €2.7 million direct order.

To shore up its losses, the MFSA increased its supervisory fees at the beginning of 2025 through legal notices published on Christmas Eve. The government did not announce this change, and the new taxes were only revealed by the Opposition.

Earlier this month, the MFSA was found guilty of abuse of power related to the dismissal of Chief Officer Reuben Fenech, and the court ordered the Authority to compensate him with €414,000 for losses incurred.

In response to a parliamentary question from Opposition member Ryan Callus, Minister Clyde Caruana confirmed that taxpayers’ money would be used to cover the compensation due to the misconduct of former CEO Joseph Cuschieri.

Additionally, despite employing over 550 staff members, including numerous lawyers, the MFSA has resorted to subcontracting legal and professional services, incurring costs of €1.3 million over the past two years.