A Regulator Under Fire
The Malta Financial Services Authority (MFSA) is facing one of its most turbulent periods. In Malta, compliance appears to be an unusual and often neglected practice. The opposition has claimed that Joseph “Joe” Cuschieri—former head of the Malta Gaming Authority (MGA) and briefly CEO of the MFSA—managed to commit more compliance breaches within a few weeks than many of the entities overseen by the regulator. Allegedly, these actions occurred with the tacit approval of then-Prime Minister Joseph Muscat.
Misconduct Allegations
The accusations against Cuschieri include:
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38 taxpayer-funded business trips with MGA/MFSA colleague Edwina Licari.
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A free business trip to Las Vegas allegedly funded by an individual described by Reuters as the mastermind behind a murder.
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Multiple extra payments for his MFSA activities—funds he reportedly intends to return due to public backlash.
Such actions, especially from the head of a national regulator, raise serious concerns about professional ethics and governance.
Public Facts Branded as “Defamation”
Recently, a formal complaint was filed by Cuschieri’s legal representative, Charlon Gouder—a figure also linked to legal proceedings concerning the murder of Maltese investigative journalist Daphne Caruana Galizia, and known for his past involvement with MGA and Edwina Licari.
The complaint alleged defamation over reports linking Cuschieri to Yorgen Fenech, who Reuters identified as the alleged mastermind behind Galizia’s assassination. On 16 October 2017, Galizia was killed in a car bombing near her home while investigating business dealings connected to Fenech. These included the Tumas Group, which held gaming interests regulated by the MGA—where Cuschieri served as CEO at the time.
According to Wikipedia, Fenech was suspected of bribing Maltese government officials and was arrested in November 2019 as part of the murder investigation. He was a central figure in the 2019 Malta political crisis. The relationship between Cuschieri and Fenech has been a matter of public record for years.
Close Ties and a Controversial Trip
It is undisputed that Cuschieri and Fenech had a close personal relationship both before and after the murder. Notably, the Las Vegas business trip took place just six months after the assassination.
At the time of that trip, Edwina Licari was a senior MGA official. Within months, Cuschieri appointed her to the MFSA as General Counsel with a €100,000 annual package, placing her on the regulator’s executive committee in October 2018 (The Shift News).
Such interconnected personal and professional relationships raise fundamental compliance concerns.
Police Silence
Cuschieri’s lawyer claims the Maltese police never questioned him regarding Galizia’s murder. This is particularly surprising given:
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The high-profile nature of the crime.
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The close personal and professional ties between Cuschieri and a murder suspect.
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The timing of the Las Vegas trip in May 2018.
Given that Daphne Caruana Galizia’s work focused on exposing corruption in Malta, a thorough investigation into all of Fenech’s connections—including Cuschieri—would seem logical. Yet, the police have not provided any explanation for this omission (source).
Defamation or Public Interest?
It is not defamatory to state that Cuschieri maintained close ties with individuals implicated in the murder conspiracy. Maltese media have even reported his participation in a private WhatsApp group with Fenech. As a public figure, scrutiny of these relationships is both justified and necessary.
Money Can’t Rewrite Facts
Cuschieri is free to pursue defamation claims should he choose to do so. His years at the MFSA and other ventures have ensured significant personal earnings. Interestingly, no similar threats have come from his long-time associate Edwina Licari.
Christopher P. Buttigieg—once Cuschieri’s deputy and now MFSA’s head—may be occupied with recovering the extra funds from Cuschieri, but he might also want to refocus the MFSA on overseeing regulated firms involved in investor fraud, such as Phoenix Payments Ltd and Paytah.
FIAU and the Las Vegas Question
The Financial Intelligence Analysis Unit (FIAU), led by Kenneth Farrugia with deputy Alfred Zammit, could still investigate the infamous Las Vegas trip involving Cuschieri, Licari, and Fenech. Notably, FIAU was previously criticized by Moneyval for failing to investigate Pilatus Bank—suggesting a pattern of oversight failures that continues to tarnish Malta’s regulatory reputation.