Malta’s Financial Regulator Under Fire – Scandals, Travel Perks, and Lax Oversight

Former MFSA CEO’s Controversial Tenure

Joseph “Joe” Cuschieri, the former CEO of the Malta Financial Services Authority (MFSA), continues to make headlines for all the wrong reasons, long after his resignation. MFSA chairman John Mamo confirmed in Malta’s Parliament that Cuschieri received honoraria intended only for board members attending meetings—on top of his regular CEO salary. Mamo added that Cuschieri was later asked to return these additional payments.
Critics argue that Cuschieri proved to be less a capable regulator and more a political appointee.

Mamo also revealed that before taking certain actions, he sought and obtained approval from Malta’s former Prime Minister Joseph Muscat, whose term ended in disgrace.

Lavish Trips with Colleagues

The Maltese press disclosed that Cuschieri, during his brief term as MFSA CEO, embarked on 38 business trips alongside Edwina Licari, MFSA’s General Counsel. These trips, spanning six years, cost Maltese taxpayers around EUR 500,000.
Licari had been hired after an interview with Cuschieri and Mamo. Destinations included Mauritius, Peru, Australia, Macau, New York, and Las Vegas.

The Financial Times previously reported on a French investigation into the business activities of Yorgen Fenech—a Maltese businessman charged with orchestrating the murder of journalist Daphne Caruana Galizia. Following local media reports, Cuschieri admitted that he and Licari accepted a free trip to Las Vegas with Fenech, a long-time acquaintance.

Adding to the intrigue, Cuschieri is married to the daughter of Malta’s President George Vella, best remembered for his unsuccessful campaign against Malta’s EU membership.

While Cuschieri resigned, Edwina Licari continues to hold her position at MFSA.

Lapses in Supervision and Regulatory Action

According to Scam-Or Project, two Maltese-registered companies have recently been linked to fraudulent activities. MFSA officials Edward Grech and Michelle Mizzi Buontempo were reportedly provided with detailed evidence, yet the regulator has made no public statement and taken no visible action on these matters.
Observers note that MFSA is preoccupied with internal turmoil.

Currently, the regulator is headed by Dr. Christopher P. Buttigieg, who rose rapidly through the ranks under Cuschieri’s leadership. Buttigieg is known internationally for his failed initiative to transform Malta into a “Blockchain Island”—a project abandoned by the government after heavy international criticism, and one that wasted millions in taxpayer funds while solidifying his influence within MFSA (MFSA page).

Exodus of Financial Institutions

During Cuschieri’s tenure, with Buttigieg as his deputy, several licensed entities—including major banks—exited Malta. The island remains under scrutiny from Moneyval and the Financial Action Task Force (FATF) for its shortcomings in combating money laundering.

Table: Key Figures and Roles