The Malta Tax and Customs Administration (MTCA) has published a circular outlining the outcome of the CRS/FATCA Annual Self-Compliance Questionnaire (SCQ) exercise conducted during the first quarter of 2026.

The exercise forms part of MTCA’s ongoing monitoring activities under the Cooperation with Other Jurisdictions on Tax Matters Regulations and aims to assess how Financial Institutions falling within scope of the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) are implementing their obligations under such frameworks. 

The circular provides an overview of key observations arising from the SCQ responses, focusing in particular on governance arrangements, due diligence procedures, operational controls and oversight practices. It also sets out MTCA’s supervisory expectations and highlights areas where Financial Institutions may need to strengthen their compliance frameworks. 

The findings indicate that, while there is general awareness of CRS and FATCA obligations across the sector, certain areas require further attention, notably the consistent implementation of governance frameworks, the effectiveness of operational controls and the oversight of outsourced functions. 

The circular also outlines examples of good practice, including the adoption of clear and documented policies and procedures, ongoing staff training, structured review processes and effective internal oversight mechanisms.

Financial Institutions are encouraged to review the observations set out in the circular and, where necessary, take timely remedial action to ensure that their policies, procedures and controls are aligned with regulatory requirements and monitoring expectations.

MTCA will continue to monitor compliance with CRS and FATCA obligations and may engage further with Financial Institutions as part of its supervisory activities. 

A copy of such circular can be viewed here.