Malta moves to notification-based regime for aircraft leasing companies

The Malta Financial Services Authority is developing a dedicated regulatory framework for aircraft financial leasing that replaces the traditional licensing model with a notification-based system. Companies that meet specified asset thresholds will be able to enter the market through a simpler process, while still facing regulatory oversight.

The initiative was developed in close collaboration with the Malta Financial Services Advisory Council. A public consultation launched in January 2026 received positive feedback, and the MFSA has incorporated stakeholder input into the draft legislative instruments and accompanying rulebook.

Clare Farrugia, MFSA’s Head of Strategy Policy and Innovation, said the framework reflects the need to align regulatory frameworks with industry realities. She added that the proposed framework provides a clear and efficient route for reputable aircraft financial leasing companies to operate in Malta, while ensuring the jurisdiction remains competitive and responsive to the needs of the international aviation industry.

By simplifying market entry, the framework is expected to attract new institutional participants and further diversify Malta’s financial services ecosystem. The aviation sector is already a significant contributor to the local economy, supported by legal, financial, and operational expertise.

Regulatory safeguards remain in place, including AML/CFT compliance, due diligence requirements, and ongoing reporting obligations. The framework also introduces Due Diligence Service Providers (DDSP), a concept recently added to Malta’s regulatory landscape, to carry out fitness and properness assessments of key functionaries at notified entities.

The MFSA is finalising the applicable Rules, which are expected to be issued for consultation in the near term. Work is also progressing on the legislative drafts needed to make the new regime operational.