The Role of the Compliance Officer in Malta: Why Outsourcing is the Smarter Choice

𝐓𝐡𝐞 𝐑𝐨𝐥𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐎𝐟𝐟𝐢𝐜𝐞𝐫 𝐢𝐧 𝐌𝐚𝐥𝐭𝐚: 𝐖𝐡𝐲 𝐎𝐮𝐭𝐬𝐨𝐮𝐫𝐜𝐢𝐧𝐠 𝐢𝐬 𝐭𝐡𝐞 𝐒𝐦𝐚𝐫𝐭𝐞𝐫 𝐂𝐡𝐨𝐢𝐜𝐞

In Malta's dynamic financial services sector, compliance is not just a requirement—it's a fundamental pillar of a company’s success. The responsibility of ensuring adherence to strict legal and regulatory frameworks falls on the Compliance Officer. For firms regulated by the Malta Financial Services Authority (MFSA), such as MiFID firms, investment funds, insurance companies, Corporate Service Providers (CSPs), Trust & Trustees, and payment institutions, appointing a Compliance Officer is not optional—it's a mandate.

But what exactly does a Compliance Officer do, and why are more companies outsourcing this vital role?


𝐓𝐡𝐞 𝐕𝐢𝐭𝐚𝐥 𝐑𝐨𝐥𝐞 𝐨𝐟 𝐚 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐎𝐟𝐟𝐢𝐜𝐞𝐫 𝐢𝐧 𝐌𝐚𝐥𝐭𝐚

A Compliance Officer in Malta plays a critical role in safeguarding a company’s integrity and reputation. This individual is tasked with the development, implementation, and oversight of compliance programs, ensuring that businesses operate within legal boundaries and meet all regulatory requirements. The responsibilities of a Compliance Officer go far beyond mere box-ticking exercises—they are the gatekeepers of a firm’s ethical and legal obligations.

To excel in this role, a Compliance Officer must possess an in-depth understanding of local and EU regulations. This includes familiarity with Anti-Money Laundering (AML) rules, MiFID II, GDPR, the MFSA rulebook, and sanctions monitoring obligations, among other financial laws. They work to create a culture of compliance within the organisation by establishing policies, conducting regular audits, and preparing reports for senior management and regulatory authorities.


𝐊𝐞𝐲 𝐑𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬 𝐨𝐟 𝐚 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐎𝐟𝐟𝐢𝐜𝐞𝐫 𝐢𝐧 𝐌𝐚𝐥𝐭𝐚:

1. 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐌𝐨𝐧𝐢𝐭𝐨𝐫𝐢𝐧𝐠: Staying updated on the latest regulatory developments is a core function. Compliance Officers must ensure that a company’s policies and procedures evolve with changes to MFSA regulations, EU directives, and global standards.

2. 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠: Compliance Officers are responsible for compiling regular reports for the MFSA and other regulatory bodies. They must identify and report potential breaches to avoid penalties. These reports are also provided to the company’s Board of Directors, ensuring top-level awareness of compliance matters.

3. 𝐑𝐢𝐬𝐤 𝐀𝐬𝐬𝐞𝐬𝐬𝐦𝐞𝐧𝐭: By evaluating a company’s activities and transactions, a Compliance Officer can identify potential risks and devise strategies to mitigate them, ensuring the company operates within legal boundaries.

4. 𝐀𝐌𝐋 𝐚𝐧𝐝 𝐂𝐅𝐓 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞: While the Money Laundering Reporting Officer (MLRO) handles AML obligations, the Compliance Officer independently tests the company’s AML framework. Any concerns are flagged to both the Board and the MLRO to ensure rigorous oversight.

5. 𝐓𝐫𝐚𝐢𝐧𝐢𝐧𝐠 𝐚𝐧𝐝 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲: Compliance Officers also provide training to staff, increasing awareness of regulatory requirements. They serve as a vital advisor to the Board, guiding the organisation through the complexities of compliance strategies and issues.


𝐖𝐡𝐲 𝐎𝐮𝐭𝐬𝐨𝐮𝐫𝐜𝐞 𝐭𝐡𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐎𝐟𝐟𝐢𝐜𝐞𝐫 𝐑𝐨𝐥𝐞 𝐢𝐧 𝐌𝐚𝐥𝐭𝐚?

With Malta’s complex regulatory landscape, outsourcing the Compliance Officer role has become an increasingly popular option for businesses. This approach offers significant advantages:

1. 𝐀𝐜𝐜𝐞𝐬𝐬 𝐭𝐨 𝐄𝐱𝐩𝐞𝐫𝐭𝐢𝐬𝐞: Outsourcing allows firms to tap into a wealth of compliance knowledge, ensuring they meet the ever-evolving MFSA regulations. By working with a dedicated outsourced team, companies benefit from up-to-date advice on changes to regulations such as MiFID II, AML, GDPR, and local MFSA rules.

2. 𝐂𝐨𝐬𝐭-𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲: Compliance is a full-time concern but hiring a full-time Compliance Officer can be costly. Outsourcing provides a flexible, cost-effective solution, especially for smaller firms that need comprehensive services without the financial commitment of a permanent staff member.

3. 𝐒𝐜𝐚𝐥𝐚𝐛𝐢𝐥𝐢𝐭𝐲: As businesses grow or regulatory requirements change, outsourcing allows companies to scale their compliance support quickly and efficiently. This flexibility is crucial in a sector where regulations are continuously evolving, and the ability to adapt is key to avoiding penalties and operational setbacks.

4. 𝐓𝐚𝐢𝐥𝐨𝐫𝐞𝐝 𝐒𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬: Every company has unique compliance needs. Outsourced Compliance Officers offer tailored services that match the specific requirements of each firm. Whether it’s policy development, risk assessment, or ongoing regulatory monitoring, outsourced teams provide end-to-end solutions designed to maintain compliance and reduce risk.


𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧: 𝐍𝐚𝐯𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐰𝐢𝐭𝐡 𝐎𝐮𝐭𝐬𝐨𝐮𝐫𝐜𝐞𝐝 𝐄𝐱𝐩𝐞𝐫𝐭𝐢𝐬𝐞

The role of a Compliance Officer in Malta is undeniably complex, and the penalties for non-compliance can be steep. As regulations continue to evolve, outsourcing this critical function is an efficient and strategic way for businesses to ensure they stay on the right side of the law.

By outsourcing your Compliance Officer needs, you gain access to specialised expertise, flexible services, and scalable support tailored to your organisation’s requirements. At Radix, we help companies navigate the intricate web of regulatory demands, ensuring you remain compliant with all MFSA requirements. Focus on your core business activities while we handle your compliance needs with precision and care.

Contact Radix today on info@radixmalta.com to learn more about our outsourced compliance services and how we can support your business in maintaining regulatory excellence.