Obtain a banking license in Malta

Getting a banking licence in Malta is a lot more than just following a set of rules. The Malta Financial Services Authority (MFSA) and the European Central Bank (ECB) work together to oversee a planned path from planning to official approval. This procedure involves strict due diligence, capital adequacy needs, detailed business plans, and governance standards that make sure that only applicants who are well-prepared get a licence.

When looking into banking licenses in Malta, it's important to know what the MFSA wants from applicants, the most important steps in the licensing sequence, and the duties that licensed banks must fulfil after they open. This involves continuing compliance duties, reporting needs, risk management, and assessments by supervisors. You'll also learn about frequent mistakes that might slow down or stop the sequence, such not managing your finances well, having weak internal controls, or not having enough local content. You'll also learn how to avoid these mistakes.

In the end, getting a Maltese banking licence isn't merely a supervisory win; it's the first step towards creating a reliable, long-lasting fiscal institution in the EU. Malta is a good place to grow a business as long as you plan ahead, get expert help, and have a solid business strategy. European regulators will keep an eye on you but also help you.

Why entrepreneurs choose to obtain a banking license in Malta

Establishing a bank in Malta transcends mere licit formalities; it is a strategic initiative aimed at gaining access to the expansive European Union market, along with its associated benefits. Malta supplies a conducive climate for fiscal institutions to prosper, supported by a unified supervisory setup and a robust mechanism for safeguarding client rights. The licit setup is based on transparency, collaboration, and set procedures for interaction with supervisory bodies.

Malta occupies a distinctive and advantageous geographical situation. Located at the intersection of Europe, North Africa, and the Middle East, it offers a significant opportunity for fiscal institutions aiming to build a presence that effectively serves several markets. For banking institutions seeking worldwide or regional expansion, Malta's geographical position is as significant an asset as its supervisory setup.

Taxation represents a significant benefit. Malta's statutory corporate tax rate for banks is 35%; however, an efficient return system can lower the effective rate to as low as 5–6% when the appropriate structure is utilised. This technique is entirely consistent with EU edicts and supplies a valid and visible avenue for excise optimisation. Malta's approximately 70 double taxation treaties enhance this appeal by substantially alleviating the burden of cross-border transactions and facilitating global banking operations.

Individuals contemplating the establishment of a bank in Malta will also gain from its resilient infrastructure. The jurisdiction boasts a robust licit and fiscal services sector, with accessible expertise in compliance, regulation, and licensing. Moreover, Malta has established itself as an innovative centre for digital banking. The MFSA not only endorses but also promotes innovation via the incorporation of fintech solutions, electronic service platforms, and adaptable API-based banking setups. Consequently, obtaining a permit for a digital bank is becoming standard practice in Malta.

The MFSA perceives the licensing procedure not as a bureaucratic obstacle but as a collaborative endeavour. Applicants can anticipate proactive feedback and visible communication, especially during the initial phases of the sequence. Nonetheless, this transparency does not diminish the necessity for thorough preparation, meticulous documentation, and complete supervisory adherence. A comprehensive comprehension of supervisory needs and a readiness to fulfil them is necessary.

Acquiring a banking licence in Malta necessitates a commitment to a culture of stringent compliance and responsible governance. Within the European setup, risk management transcends mere compliance; it is an essential cornerstone of trust and credibility. Malta supplies institutions engaged in private banking, digital finance, fintech innovations, or international loans with the possibility to establish operational models based on integrity, security, and superior professional standards. This jurisdiction incentivises those prepared to establish not merely a bank, but a sustainable and esteemed fiscal organisation.

Minimum needs

The first thing to do is to check if the application meets the needs for a banking license in Malta. Edicts state that operations must be conducted through a registered limited liability company based in the country. At the same time, the organization must be flexible; it needs to be fully operational, with a local office, active staff, and systems for internal monitoring and reporting. A bank in Malta requires a minimum amount of share capital, specifically €5 million. This sum must be fully contributed before the company begins its activities. This figure is fixed and serves as both a cushion for liquidity and a sign of serious intentions and readiness for long-term business.Next, one must consider what the MFSA expects from the banks in Malta. Applicants must show that they have a strong corporate governance structure in place, which includes a board of directors that fits the bank's profile, as well as audit and risk committees, and clearly defined internal control procedures. It is crucial that management has the necessary expertise and reputation in business, and that key roles like compliance and risk management are assigned to different individuals.Typically, the MFSA operates under a "four eyes" principle. This indicates that decisions made by management need to involve at least two full-time staff members. This step is essential for securing a business license in Malta.

Maltan banks must follow the law and also have an AML/CFT policy, rules for keeping personal information safe, an internal reporting system, a way for people to report problems, and plans for what to do when things go wrong. All of this needs to be put down, looked over, and changed to fit the bank's size and type. You can only open a bank in Malta. After that, you have a good chance of getting a licence.

How to get a banking license in Malta

Earlier to beginning a venture, it is basic to get it that getting a banking permit in Malta is not essentially a collection of customs, but a complex lawful and procedural strategy where each detail is vital. A deliberate approach to arrangement is basic, along with the capacity to alter documentation to meet MFSA measures. Blunders in this space lead to squandered time and, at times, a total refusal of enrollment.

The permitting for a bank in Malta includes four fundamental stages. Each is analyzed from both a legitimate and money related perspective. The MFSA surveys the firm's capacity to guarantee long-term practicality whereas too looking at adherence to legitimate necessities. This is not fair bureaucracy; it is moreover a figure in building trust between the controller and the planned bank.

Starting the registration process for a bank in Malta begins with submitting a "Statement of Intent." This document explains the business model, important figures, organization, and objectives of the applicant. At this point, it is crucial to thoughtfully consider all main aspects and engage in early conversations with experts in the field.

The stages of obtaining a banking license in Malta can be presented as follows:

Submitting an application to the MFSA for a banking licence in Malta is contingent upon the complete preparation of all corporate and supervisory documentation. This encompasses the charter, capital structure, internal control program, IT infrastructure description, and operational and credit risk management strategies.

The second essential component is the legislative setup of the bank in Malta. This entails not only registering the company in the registry but also employing a local auditor, securing office space, and maintaining resident personnel. The MFSA disapproves of "empty boxes"; banks must demonstrate genuine operations rather than only possessing licenses on paper.

The response to the inquiry about the establishment of a bank in Malta is contingent upon the level of preparation and meticulous adherence to all edicts. Any differences between the declared and actual factors, such as in capital sources or ownership structure, may result in the suspension of the procedure or the total withdrawal of the application.

The bank licensing sequence in Malta typically requires 9 to 12 months. In certain instances, the sequence may be expedited if the applicant submits a complete set of documents initially, is prepared for timely meetings, and refrains from altering essential criteria during the procedure. The regulator retains the authority to solicit supplementary information or perform individual interviews with senior management.

Acquiring an MFSA licence for a bank in Malta necessitates the establishment of a visible licit setup. This encompasses not only the licensee company but also all ultimate beneficiaries, connected entities, corporate agreements with IT service providers, and payment infrastructure providers. The MFSA meticulously scrutinises even the minutest aspects, including the text of internal directives and customer contracts.

Finally, to keep your bank's licit standing and good name in Malta, you need to know how to register a bank there. A licence and access to the international correspondent network are both at risk in the context of stringent compliance monitoring by the EU, FinCEN, and FATF. So, you'll need to put your knowledge of the regulator's reasoning, your familiarity with local practice, and your expertise to use when you draft documents and construct a setup.

Obtaining a banking license in Malta and passing the MFSA check

Everything related to a banking license in Malta through the MFSA begins with a deep examination. This is not a mechanical check of the application form - the regulator conducts licit, fiscal and management analysis. The MFSA seeks to ensure that it is not a formal structure, but a mature project with a clear business model, stable capital and visible owners. Approval is not a right, but the result of consistent work, where every step is important.

At the time of registration of a banking license in Malta, the applicant must already undergo internal verification, confirm sources of funding, provide all internal policies (risk, audit, IT security, AML). But even this does not mean that the check is complete. After formal registration, the most careful consideration begins - the MFSA studies the documents in detail, including the history of all key figures.

For those seeking to pass an MFSA audit when licensing a bank in Malta, it is critical to not only demonstrate compliance with the law, but also to present the logic behind the decisions taken. Why was this particular ownership structure chosen? Under what conditions will the bank raise capital? How will internal controls be ensured? These and other questions will be asked in written requests or in person.

The needs for obtaining a banking license in Malta include not only the minimum parameters (capital, charter, resident directors), but also the institution’s ability to adapt to market risks. Therefore, the MFSA will assess stress tests, IT architecture, the level of training of the compliance service and the availability of incident plans.

In many cases, the regulator will request additional information, repeated documents or updates as the review progresses. To avoid this, it is important not to ignore the format of interaction adopted in Maltese practice. Below is a list of key factors that the MFSA pays attention to:

What does the MFSA analyse when checking a bank:

• qualification of directors and shareholders (fit & proper test);
• the degree of openness of sources of capital and fiscal flows;
• availability of existing infrastructure in Malta (office, staff, IT environment);
• internal control and risk management policy;
• the bank's readiness to report according to EU standards;
• compliance of the ownership structure with AML/CFT needs.

In some cases, the regulator considers the issue individually, especially if the ownership structure is atypical, or if the applicant has not previously worked in the banking sector. In these cases, licensing a banking structure in Malta may take longer, and the scope of checks may be more in-depth. But practice shows that if the structure is visible, the team is experienced, and the project is sustainable, a license can be obtained without unnecessary delays.

Registering a bank in Malta means not just licit registration, but access to ongoing interaction with the MFSA. Within a year of issuing a license, the institution undergoes an inspection in key areas - reporting, liquidity, data protection, AML. This requires a high degree of readiness for a systemic dialogue with the regulator.

The MFSA works in conjunction with the European Central Bank, so the actual licensing always takes place in the context of European regulation. And if your goal is a scalable bank with EU passporting, passing this check is a mandatory and strategically important step.

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The ECB's Role in Malta's Banking License : What You Need to Know in Advance

Any banking licence issued in Malta is overseen by the European Central Bank because Malta is a component of the Single Supervisory Mechanism (SSM). The MFSA issues the licence formally, but in reality, the ECB must first approve it for it to be valid. Many would-be business owners fail to account for this crucial factor while making plans to join the market.

In order to issue a bank licence in Malta, the SSM must be involved. The sequence begins with the submission of all necessary documents to the MFSA, and then the dossier is forwarded to the European Central Bank. There, it is evaluated in a different manner. Examining the applicant's corporate background, ownership structure, beneficiary reputation, and shareholder makeup are all part of this sequence. Therefore, the bank is overseen by both national (MFSA) and supranational (ECB) regulators.

When you commit to getting a banking licence in Malta, you're essentially committed to the European monitoring system. Subsequent notification or approval by the ECB may be required for any changes to the company's structure, change of shareholders, or expansion of activities in the EU. Even if this makes regulation more uniform, it also makes corporate governance more complicated.

Operating under a common licit setup, the MFSA and the ECB are subject to Regulation (EU) No. 1024/2013. This ensures that Malta's banking licensing is in line with European norms. For instance, you can still be subject to re-evaluation even if you have a valid licence from another EU country. While the European Central Bank applies pan-European standards, Malta maintains the authority to consider its own risks.

This necessitates that the applicant's documents be prepared in both English and the format used for European supervision. The MFSA looks at regional details, whilst the ECB makes sure the model works in the common market. Specifically taken into account are the following parameters:

• the openness of the ownership and controlling person structures,
• the sufficiency of the capital in relation to risk,
• the conformity of the business model to the needs of European regulation,
• the conformity of internal control and reporting standards.

The ECB often avoids having one-on-one conversations with applicants. Everything passes via the MFSA, which is responsible for receiving the final decision, as well as aggregating and transmitting the papers. Nevertheless, the ECB has the right to request supplementary information in the event that the project is deemed substantial, such as when extensive international coverage is intended.

As a result, meeting the needs of both the Maltese government and the European fiscal system is a double-edged sword. The ability to expand beyond Malta, increase services throughout the EU without re-registration, and leverage your status as a regulated player in discussions with investors and banks are all competitive advantages that come with the licence.

How much does it cost to get a banking license in Malta : fees and costs

At the planning stage, it is vital to have a clear knowledge of how much it truly costs to get a banking permit in the polity, counting all the required installments that are controlled by the MFSA. The botch numerous candidates make is to as it were to consider the enlistment charge, overlooking almost the yearly supervisory installments, as well as the need to keep up a full-fledged foundation. And this is not as it were a matter of notoriety, but moreover of lawful compliance.

Let's begin with the essential figures. The bill of a a banking license in the polity incorporates the following sorts of expenses:

Consequently, a minimum of 53,000 euros is required at the outset of the expenditures. Internal costs for consulting, audit, and licit support, which can range from 50,000 to 100,000 euros, are not included in this figure, contingent upon the project's complexity.

Operational costs should be taken into account when determining the cost of establishing a bank in Malta. The bank must possess a physical office, a staff of qualified employees, internal control systems, and IT infrastructure. The payroll fund can be as high as 250,000-400,000 euros per year for a modest organisation, given the mandatory presence of resident managers and the level of salaries.

Furthermore, it may be necessary to lease premises, acquire equipment, and establish agreements with auditors and compliance providers at the outset. The licensing of a bank in Malta necessitates the payment of all of these expenses. The regulator explicitly mandates that the structure be "substance-based," meaning that it must have a genuine presence rather than a mere representative office.

The licensing of banking activities in Malta does not conclude upon the receipt of the permit, as the MFSA considers the institution's annual activity. The bank is required to pay a supervisory fee annually, which is determined as a percentage of the total deposits attracted. The quantity of the annual payment increases if the bank is actively expanding.

Budgeting for the entire annual cycle of expenses, including IT support, insurance, and licit support, is essential for an objective assessment. This includes not only initial contributions and capital, but also the entire annual cycle of expenses. This is the sole method of accurately determining the cost of registering a bank in Malta and preventing fiscal errors that could potentially jeopardise your work, even if you possess a licence.

As a consequence, the cost of establishing a bank in Malta is the sum of several categories, including mandatory fees, operating costs, investments in infrastructure and personnel, and unforeseen costs associated with supervisory enquiries. And although the expense may appear exorbitant, it is consistent with European standards and grants access to the EU single fiscal market, which ultimately finances the investment.

How to ensure AML/CFT compliance when obtaining a banking license in Malta

Compliance in Malta is not an abstract discipline. It is a system of licit and practical procedures without which it is impossible to obtain a banking license in Malta. A bank seeking access to EU finances must demonstrate its readiness not only to work with clients, but also to protect the system from being used for fiscal fraud. This is a key aspect without which it is impossible to pass the MFSA assessment and the European Central Bank approval.

To receive a banking license in Malta, it is essential to have a complete set of internal policies and procedures to ensure compliance with AML/CFT edicts. Not only must these documents be officially approved, but they also need to be put into practice and tailored to fit the bank’s operating model. The regulator evaluates how effectively the system addresses risks, what steps are followed for suspicious transactions, and how well the KYC sequences are designed.

The key components that are mandatory as part of the Malta banking authorisation sequence include:

• AML/CFT and data protection training program for staff;
• system for identifying suspicious transactions (scripts, filters, alerts);
• algorithms for client risk assessment by country, industry and transaction volume;
• standardized KYC forms and continuous updating of client files;
• registration and storage of documentation in accordance with the GDPR and the Malta Data Protection Act.

The applicant must define in advance how exactly they will monitor transactions, through what channels they will report suspicious transactions, and who within the organization is responsible for assessing incidents. If these sequences are not described or are duplicated between departments, the MFSA will return the dossier for revision. This is not a technical failure, but it will slow down the entire project.

Given the high international standards, the conditions for obtaining a banking license in Malta require mandatory integration of electronic solutions for identifying risks. The presence of manual control in 2025 is considered a sign of immaturity of the system. Therefore, even before obtaining a license, most banks connect outsourced AML platforms that are capable of conducting behavioral and geographical analysis, processing "alarm signals" in real time and generating automatic reporting for the regulator.

Proper integration of AML components into the structure of a future bank significantly increases the chances of approval. Under pressure from FATF, European regulators and correspondent banks, Malta is strengthening its needs for the protection of the fiscal system. Accordingly, it is simply impossible to pass the inspection without a well-developed compliance architecture.

Levies for banks in Malta

Any entrepreneur who decides to obtain a banking license in Malta, first of all, evaluates not only the licit environment, but also the excise obligations that will have to be borne after entering the market. Unlike many other European jurisdictions, Malta offers fiscal institutions a fairly flexible and effective taxation model. And it is this model, along with the possibility of passporting, that makes the country attractive to international players.

At the basic level, obtaining a banking license in Malta involves compliance with the country's standard excise system. The nominal income excise rate is 35%, one of the highest in Europe. However, there is a unique excise refund mechanism that allows the final excise burden to be reduced to 5-6%, depending on the profit distribution structure and the jurisdiction of the final beneficiary.

Moreover, the tax system for banks in Malta is built taking into account international agreements. To date, Malta has concluded more than 70 conventions on the avoidance of double taxation, which allows for the optimization of taxes on cross-border transactions, payment of interest, dividends and royalties. This is especially important for fiscal organizations working with corporate clients and investment flows.

In terms of compliance, taxation of banking activities in Malta is governed not only by the local excise code, but also by the BEPS 2.0 standards and the provisions of the global minimum excise (Pillar Two). Since 2025, Malta has implemented internal rules to comply with the new needs, which obliges large banks to comply with a minimum effective rate of 15% depending on their global turnover. However, this rule only applies to structures that are part of international groups with a total revenue of over €750 million.

Residents with a license from the MFSA can benefit from the following excise benefits:

• partial refund of corporate excise (up to 6/7);
• no capital gains excise (except in cases of sale of real estate);
• full exemption from excise on dividends received from foreign companies;
• application of the participation exemption for non-residents' shares;
• accelerated write-off of capital expenditures and software costs.

Such a system supplies ample opportunities for excise planning. However, it is important to understand that the structure of a bank claiming benefits must be real. Signs of fictitiousness or "paper" activity are a direct path to denial of benefits.

To understand the level of obligations of a fiscal institution opening in the country, we present a basic table:

Bank licensing in Malta is not just access to the EU, but also an excise instrument. However, in the context of the new global transparency policy, any structure must be thought out in terms of substance and reporting. Otherwise, the formal benefit will quickly turn into supervisory and reputational risks.

Conclusion

Deciding to obtain a banking license in Malta means choosing a path that is not fast, but strategically verified. This jurisdiction does not give concessions, but does not put up artificial barriers either. Instead, it has visible criteria, a supervisory dialogue, and the ability to build a scalable banking business model with access to all EU countries. But going this route without making any mistakes is a task that requires experience, a systematic approach, and a knowledge of the logic of local regulators.

In the context of strict control by the MFSA and the European Central Bank, even a minor error in documentation or corporate structure can result in a delay in the sequence or refusal. That is why competent support in obtaining a banking license in Malta becomes not just support, but a necessary element of the strategy. We are not talking about formal assistance, but about a full-fledged partnership at all stages - from choosing a capital structure to protecting interests in a dialogue with the regulator.

As a consulting company with a narrow specialization, we understand that licit assistance in registering a bank in Malta is not only about knowledge of the law. It is also about orientation in practice, knowledge of the priorities of the MFSA, knowledge of the latest edition of European directives and the ability to translate supervisory needs into specific licit and management decisions.