Regulatory Shake-Up in Malta: MFSA CEO Resigns Amid Ongoing Controversy

Sudden Exit of MFSA Chief Joseph Gavin

Scam-Or Project has learned that Joseph Gavin, the CEO of the Malta Financial Services Authority (MFSA), has stepped down earlier than anticipated. Though it was previously announced that Gavin would resign later this year, his departure occurred before the close of summer. Gavin, an Irish national and lawyer, joined MFSA in July 2021 with a compensation package reportedly valued at €160,000 annually.

His predecessor, Joseph Cuschieri, left under a cloud of scandal, and his interim successor, Christopher P. Buttigieg, is currently facing legal action related to his tenure at the regulatory body. Malta’s financial regulatory environment appears increasingly unstable.

Gavin’s Background and Media Incident

Prior to assuming his role at MFSA, Gavin served as General Counsel at the Central Bank of Ireland from 2009 to 2015. His tenure at MFSA was not without controversy. In 2022, he abruptly ended an interview with the Times of Malta—an interview arranged by MFSA itself—after declining to address whether he had investigated regulatory failures surrounding the licensing of Nemea Bank, Pilatus Bank, and Satabank. (source)

Notably, all three banks had their licenses revoked by the European Central Bank (ECB) between 2017 and 2020, raising questions about the oversight effectiveness of MFSA during that period.

The Legacy of Joseph Cuschieri

Gavin succeeded Joseph Cuschieri, who resigned amid public outrage following revelations of his association with Yorgen Fenech, the alleged mastermind behind the assassination of journalist Daphne Caruana Galizia. Cuschieri initially resisted resignation but ultimately stepped down after mounting pressure.

During his term, Cuschieri approved substantial discretionary spending, including luxury travel accommodations. He was frequently accompanied by Edwina Licari, who remains employed at MFSA and had previously traveled to Las Vegas with Yorgen Fenech.

The Rise and Fall of Christopher P. Buttigieg

After Cuschieri’s exit, Christopher P. Buttigieg was named Acting CEO but was passed over for the permanent role in favor of Michelle Mizzi Buontempo. Despite enjoying rapid career advancement under Cuschieri, Buttigieg is now embroiled in serious allegations. He is accused of attempting to pressure a regulated individual into selling their business to a competitor—an accusation currently under review by Malta’s judiciary.

Unresolved Conflicts and Declining Credibility

Both Mizzi Buontempo and Buttigieg have faced criticism for failing to disclose conflicts of interest while holding senior roles at MFSA for more than a decade. Their time at the authority coincides with several high-profile regulatory failures, including the mishandling of the Pilatus Bank case.

Despite growing calls for accountability, neither has been investigated by Malta’s police. Meanwhile, the MFSA has suffered significant reputational damage and financial decline, with hundreds of licensed entities relinquishing their Maltese registrations in recent years.

Overview of Key Events

Conclusion

The rapid turnover and legal troubles among MFSA’s leadership reflect deeper governance and integrity issues within Malta’s regulatory system. As more licensed firms abandon the island and losses mount, the country’s ability to restore confidence in its financial supervision remains uncertain.