Latest Payments News: Malta’s Latest Dear CEO Letter Signals Tighter Oversight for Payment Firms, and more

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Malta’s Latest Dear CEO Letter Signals Tighter Oversight for Payment Firms

The Malta Financial Services Authority (MFSA) has identified multiple compliance failings among financial institutions offering payment accounts, warning that some providers are misleading consumers and failing to keep regulatory disclosures up to date.

In a Dear CEO letter published on August 27, the regulator said a thematic review had found shortcomings in fee disclosures, the use of its official Payment Accounts Fees Comparison Tool and website descriptions of services.

The review assessed three institutions licensed under the Financial Institutions Act that provide payment accounts enabling consumers to deposit, withdraw and make payment transactions.

Among the failings, the MFSA highlighted:

• Non-compliance with fee statements, noting that one institution did not meet requirements for the Statement of Fees under the EU’s Payment Accounts Directive.
• Out-of-date comparison data, with some providers failing to update information on the MFSA’s online comparison tool and one still listing a product no longer on offer.
• Use of misleading terminology, including instances where firms used words such as “bank” or “banking” on their websites, potentially giving consumers the false impression they were dealing with a credit institution.

“During the selected website reviews, it was observed by the Authority that there were phrases used by the Financial Institutions which could be misleading clients into believing that the Financial Institution is a Credit Institution/Bank,” the letter warns.

The regulator added that terms such as “bank”, “banking", “mobile banking" and “bank account” risk creating confusion among clients.

Some may mistakenly believe they are dealing with a bank or credit institution, when in fact the firm is not authorised under the Banking Act.

“The Authority emphasises the need for Financial Institutions to exercise caution when selecting terminology, as using such misleading language could result in confusion about the nature of the services provided.”

Payments Firms Set to Benefit From Australia’s Simpler Regulatory Framework

As the Australian Securities and Exchange Commission (ASIC) simplifies guidance and legislative instruments, financial institutions can expect clearer compliance requirements and greater opportunities to innovate.

In a report on regulatory simplification, ASIC said that it has culled more than 9,240 pages of regulation since the beginning of the year.

The regulator also said it has improved access to regulatory information through a redesign of its website that included removing more than 9,000 pages of content and consolidating 23 legislative instruments by at least 65 pages.

ASIC chair Joe Longo said the regulator had listened to feedback about its guidance, website and legal instruments.

“Regulatory complexity raises costs, stifles innovation and makes compliance harder,” he said.

“Since we formed the ASIC Simplification Consultative Group late last year with key leaders across business, industry and consumer groups, we have been focused on simplifying how we regulate. Simpler, clearer regulation is more enforceable but it also means more seamless interactions with ASIC, more understandable rules to protect consumers, and clearer compliance requirements.”

The regulator is also working with the Treasury on examining whether legal reforms could contribute to regulatory simplification and has called for feedback by October 25, 2025.

“This is a multi-year program of work and we want to hear more about what we should consider for our next steps and initiatives,” Longo added.

“We want to hear from those who engage with ASIC – what works, what doesn’t, and what would make the biggest difference.”

Lithuania Marks End Of Summer With Licence Revocations And Fines

Regulators have revoked the licence of Hong Kong payments firm PanPay Europe and penalised local e-money institution (EMI) Pervesk, underlining persistent compliance weaknesses across the fast-growing fintech industry.

The Bank of Lithuania has revoked the electronic money institution (EMI) licence of PanPay Europe after uncovering what it said was “gross and systematic” breaches of anti-money laundering and counter-terrorist financing (AML/CTF) requirements.

A targeted inspection of the Hong Kong payments company revealed that clients’ payment transaction turnover exceeded €1.6bn during the audit period. However, PanPay Europe’s monitoring of business relationships and transactions fell far short of legal obligations.

Supervisors found serious deficiencies in the company’s controls. For example, monitoring functions and responsibilities were poorly defined, suspicious activity criteria and scenarios were inadequate and unjustified exceptions were applied.

The inspection also found failures in both real-time and retrospective monitoring, with many suspicious transactions not stopped, assessed or investigated.

The central bank also determined that PanPay Europe did not take adequate measures to manage conflicts of interest that increased money laundering and terrorist financing risks.

Furthermore, it failed to properly store and provide required data, sometimes submitting incorrect or incomplete information.

Citing the nature, scope and persistence of the breaches, the Bank of Lithuania decided to revoke PanPay Europe’s licence, effectively ending its ability to operate in Europe.

According to its website, the company is authorised in both Hong Kong and the US, and has also received accreditation from regulators on the Chinese mainland.

The Bank of Lithuania said that the company must cease all financial services, notify customers of settlement procedures within five business days and return client funds to other financial institutions.

Key Regulatory Shift As Australia Extends AML/CTF Regime To Virtual Assets

In bringing virtual asset service providers (VASPs) under its anti-money laundering and counter-terrorism financing (AML/CTF) framework, Australia aims to align with global standards and simplify financial regulation.

The proposed reforms, which follow a two-stage public consultation process, have three objectives: combatting crime, improving Financial Action Task Force (FATF) compliance and minimising regulatory burden.

The new rules, published on August 29, 2025, supplement the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024 and extend the regime to higher-risk services, known as tranche 2 entities.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) said tranche 2 entities will be subject to the new rules from July 1, 2026.

The reforms, which have altered the AML/CTF framework to a more outcomes-based approach, are intended to modernise the regime and bring it into line with international standards set by FATF.

Currently, businesses internationally recognised as providing high‑risk services are not regulated as part of the AML/CTF regime, leaving them vulnerable to exploitation by criminals.

In a statement, the government said that without reform the AML/CTF regime would become progressively less effective and more wasteful over time, while regulated entities would be subject to an overly complex regime.

“The costs of inaction are significant, and would likely increase over time with Australia falling further behind continually strengthened international standards set by the FATF, heightening the risk of substantial reputational and economic damage and increasing criminal threats to Australia’s financial systems and professional services,” it said.

AUSTRAC said that although the rules are designed to be enduring, they are also subject to an ongoing process of development, refinement and review. This involves scrutiny from stakeholders including the FATF, Australian government bodies and law enforcement agencies.

Money And Law No Obstacle To Australia’s Regulatory Streamlining

The Australian Securities and Investments Commission (ASIC) is prioritising regulatory simplification, technological investment and support for innovation, demonstrating a willingness to adapt legislation and operations to emerging financial trends.

In its corporate plan for 2025–26, ASIC stated that it will continue to explore how it can administer the law in the areas it regulates more efficiently and effectively.

“Opportunities to reduce red tape through law reform are also on the table,” the regulator said.

ASIC intends to embed regulatory simplification in its work as a key priority. It also plans to build on the Simplification Consultative Group, established late last year, by simplifying regulatory guidance, reducing complexity in regulatory instruments and enabling easier transactions and interactions with the regulator..

ASIC chair Joe Longo said the operating environment for the financial ecosystem is increasingly complex and requires a well-calibrated response from the regulator.

“We direct our efforts and finite resources to areas where we see the greatest risks and potential harms. In some cases, that means continuing work already underway. In other cases, this means pivoting to new or emerging issues or causes for concern.”

The regulator said it plans to invest further in streamlining its operations, which it believes is proving successful.

It says the reforms have resulted in improved performance, including more investigations, faster progression of matters to regulatory or enforcement action, enhanced data analytics and surveillance capabilities and stronger stakeholder engagement.

“We will reinforce those efforts with further investments in our people, systems, and technology, to ensure we are a digitally enabled, data-informed regulator,” ASIC said.

Financial crime is another priority for the coming year, with disrupting scams at the centre of its collaboration with other regulators to implement reforms under the Scams Prevention Framework.

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