Webinar discusses risk-based approach to trusts and foundations

The risk-based approach adopted by banks towards trusts and foundations was discussed in detail during FinanceMalta’s first webinar of 2021, attended by over 200 participants.

“Banks in Malta: Dealing with Trusts and Foundations” was the theme of the event aimed primarily at legal and compliance officers working with banks in Malta. The objective of the event was to provide a better understanding of these structured entities, how they are regulated and accepted by banks as their customers.

The need for the webinar was brought up during the meetings of the Banking Committee, an initiative spearheaded by FinanceMalta in 2020 to address the issues experienced by financial services practitioners when liaising with banks in Malta. The Banking Committee comprises all stakeholders including the Malta Bankers’ Association (MBA), the Malta Financial Services Authority (MFSA), the Financial Intelligence Analysis Unit (FIAU), the Institute of Financial Services Practitioners (IFSP), the Central Bank of Malta, Malta Enterprise, the Malta Institute of Accountants, the Chamber of SMEs, and the Ministry for Finance and Employment.

Opening the webinar, the Chairman of FinanceMalta, Rudolph Psaila, said the risk-based approach is central to the discussion on trusts and foundations: “Implementing a risk-based approach means that supervisors, credit and financial institutions, and trust and company service providers identify, assess, and understand the money laundering and terrorist financing risks to which they are exposed, and implement the most appropriate mitigation measures. This approach enables them to focus their resources where the risks are higher.”

A panel discussion focused on the understanding of the banks’ position and concerns about trusts and foundations. The panel was moderated by Vanessa Macdonald from the Central Bank of Malta, and included Maruska Buttigieg Gili from BNF, Simon Micallef from APS Bank and Alexandra Sciberras from Sparkasse.