The Malta Financial Services Authority (“MFSA”) in collaboration with the Malta Financial Services Advisory Council launched a public consultation on proposed legislative measures relating to aircraft financial leasing in Malta. The public consultation is accompanied by a package of draft legislative instruments intended to establish a new regulatory framework for aircraft financial leasing companies.
At present, aircraft financial leasing activities are generally subject to licensing under the Financial Institutions Act (Chapter 376 of the laws of Malta) (the “Act”), unless an exemption applies. The proposals seek to introduce a notification-based regime for qualifying companies carrying out the financial leasing of aircraft and/or aircraft engines, under which such entities would no longer be required to obtain a licence but would instead be admitted to a dedicated register maintained by the MFSA, namely the List of Aircraft Financial Leasing Companies. The proposals are intended to introduce a more proportionate regulatory approach to aircraft financial leasing in Malta, by replacing full authorisation requirements with a lighter statutory framework for qualifying operators.
Eligibility under the proposed framework would be limited to companies incorporated in Malta which carry out exclusively aircraft financial leasing activities (and activities ancillary thereto) and which maintain total assets of at least €100 million, whether through own funds or asset ownership.
While not licensed, companies admitted under the framework would remain subject to regulatory oversight. Entities benefitting from the proposed regime would be regarded as subject persons for Anti-Money Laundering / Counter Financing of Terrorism (“AML/CFT”) purposes and would therefore be required to comply with applicable AML/CFT obligations, including the appointment of a money laundering reporting officer.
The due diligence function would be carried out by an external provider appointed by the aircraft financial leasing company, responsible for assessing and monitoring the fitness and properness of beneficial owners, directors, senior officials and other relevant service providers. The consultation further indicates that Company Service Providers (“CSPs”) licensed under the Company Service Providers Act (Chapter 529 of the laws of Malta), excluding under-threshold CSPs, may be considered for this role, subject to the MFSA being satisfied as to their operational capacity and expertise.
Companies admitted under the framework would also be subject to ongoing compliance and reporting obligations.
The consultation is supported by a suite of draft legislative instruments, including a draft bill proposing amendments to the Act and draft subsidiary legislation establishing the notification regime and related compliance requirements. Draft amendments to the Financial Institutions Act (Fees) Regulations (S.L. 376.03) have also been published, proposing notification and annual renewal fees for companies admitted under the framework.
The MFSA has additionally indicated that the existing exemption for financial leasing of aircraft and ships under Article 3A of the Act is intended to remain in place alongside the proposed notification regime. In this context, Article 3A exempts financial leasing activities carried out in or from Malta (whether by entities established in Malta or elsewhere) where the leasing relates to an aircraft, an aircraft engine or a ship, and the leasing entity and the relevant transaction/asset are owned, controlled, or financed exclusively by authorised or regulated persons or entities.
Stakeholders are invited to submit comments on both the general features of the proposed framework and the accompanying draft legislative instruments through the Government consultation portal by 9 February 2026.
The document can be accessed here: Consultation on the Proposed Establishment of a Framework for Aircraft Financial Leasing Companies
For further guidance or assistance in understanding the proposed framework and its potential implications, please do not hesitate to contact us at David Zahra & Associates Advocates. In particular, as a CSP licensed under the Company Service Providers Act, we are able to support aircraft financial leasing companies by performing the external due diligence function contemplated in the consultation, including the ongoing assessment and monitoring of the fitness and properness of beneficial owners, directors, senior officials and other relevant parties. Our team would be pleased to assist stakeholders in navigating these regulatory developments.
