Malta Proposes Streamlined Regulatory Framework for Aircraft Leasing

The Malta Financial Services Authority (MFSA) working with the Malta Financial Services Advisory Council (MFSAC), has launched a consultation on establishing a notification-based framework for aircraft financial leasing companies with assets exceeding €100 million. The proposals to streamline the regulatory regime will further support the country as it becomes a major hub for aircraft leasing.  

Under the proposed system, lessors and financiers of aircraft and engines meeting the threshold would no longer require banking or financial services licenses. Instead, they would simply notify the MFSA and be added to a register of aircraft financial leasing companies. 

The consultation notes that this is about reducing regulatory burden whilst maintaining appropriate oversight. Malta-registered companies would need to exclusively focus on aircraft and engine leasing, maintain the €100 million asset threshold through own funds or asset ownership, and appoint both a due diligence service provider and money laundering reporting officer. 

The MFSA would be required to process admissions within 20 working days, with ongoing reporting obligations kept deliberately minimal. Companies would need to provide basic details about client jurisdictions and business operations. 

The initiative forms part of the MFSAC's National Strategy for the Financial Services Sector, which identifies aircraft leasing as a potential centre of excellence for Malta. The jurisdiction already benefits from established aviation infrastructure, favourable legislative frameworks, and recent improvements including enhanced enforcement mechanisms for share pledges and simplified aircraft importation procedures. 

Alongside the new framework, existing exemptions for financial leasing of ships and aircraft will remain in place for entities owned, controlled, or funded by regulated financial institutions including banks, investment firms, and insurance companies. 

The consultation proposes amendments to the Financial Institutions Act, new regulations specifically for aircraft leasing companies, revised fee structures, and strengthened anti-money laundering provisions covering all forms of financial leasing. 

Feedback on the proposals must be submitted by February 9, 2026.