MFSA Moves Towards a Dedicated Framework for Aircraft Financial Leasing

Malta is lining up a more streamlined way in for aircraft financial leasing companies, with the Malta Financial Services Authority (MFSA) working on a purpose-built regulatory framework for the sector.

At the heart of the proposal is a move away from full licensing towards a notification-based regime. Companies that meet set asset thresholds would be able to enter the market through notification, while supervisory oversight and regulatory standards remain in place. The MFSA’s thinking is that an easier route in for aircraft and aircraft engine leasing structures will make Malta a sharper competitor in international aviation finance, and draw new institutional players to the island.

The timing makes sense given aviation is already a meaningful contributor to the local economy, backed by a deep pool of legal, financial and operational expertise, and the new framework is designed to tie that expertise more closely to the financial services sector. It was developed alongside the Malta Financial Services Advisory Council, helping keep it grounded in how the industry actually operates.

The groundwork has been laid in stages. A public consultation on the framework and draft legislation opened in January 2026 and was met with a supportive response from stakeholders, with relevant feedback built into the proposed law and the rulebook now being finalised.

MFSA Head of Strategy, Policy and Innovation Clare Farrugia said the framework gives reputable lessors “a clear and efficient route” to operate in Malta, while keeping the jurisdiction competitive and responsive to the needs of international aviation.

Notified entities will still face AML/CFT requirements, due diligence checks and ongoing reporting, and a new category of Due Diligence Service Providers will assess the fitness and properness of their key functionaries.

The MFSA is now finalising the rules, while the legislative drafts work their way through the approval process.