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Fintech Exploring the funds travel rule in terms of virtual assets issued by the FATF

In June 2019, the Financial Action Task Force (FATF) established various rules to combat the misuse of virtual assets for the purpose of money laundering and financing of terrorism. The funds travel rule featured in the FATF’s recommendations as well as it requires Virtual Asset Service Providers (‘VASPs’) to collate and share information about the sender (originator) and receiver (beneficiary) whilst undertaking a transaction.

IT & technology Defending key national infrastructures from cyber attacks

The possibility of Malta’s power grid being hit by a disruptive cyberattack is not remote. In October 2019, Siemens and Ponemon published the findings of a worldwide joint survey carried out on a sample of 1,700 utility professionals responsible for cybersecurity within their companies (1).

Audit and Assurance Taking joint responsibility for corporate failures – An audit perspective

Following the Dutch Authority for the Financial Markets' (AFM) assessment during 2017-2018 on ‘quality change’ at PIE audit firms over quality safeguards that failed to prevent or detect deficiencies in a number of statutory audits inspected, trust in auditors has declined after a number of these high-profile corporate reporting failures.

Tax & regulatory ICO: fundamentals and the cryptocurrency tax in Malta

Initial coin offering (ICO) campaigns, sometimes referred to as ‘token sales’ or ‘token-generating events’ (TGE), which raise funds for a venture through the issue of a cryptographic token in exchange for digital currency (fiat or virtual) may be paralleled to online crowdfunding campaigns or initial public offerings (IPOs).

Artificial Intelligence Malta’s national AI strategy: is the country ready?

The Maltese government has officially launched its national AI strategy during the Delta Summit 2019. The document is a blueprint for the progressive introduction of AI into Maltese society, which will position the island as a centre of excellence for artificial intelligence-backed technologies. The strategy, which sets a vision for Malta to become the “Ultimate AI Launchpad” by 2030, relies on the attainment of three strategic objectives.

BUDGET Malta Budget 2020: what are green bonds?

Malta Budget 2020: what are green bonds? During the presentation of the 2020 budget, Malta’s Finance Minister Edward Scicluna has announced that the Malta Stock Exchange will open up for green bonds. Green bonds are a way to raise money for projects which bear interest in environment improvement or carry an eco-friendly aspect. Indicatively, such projects may entail the introduction of sustainable renewable energies, clean transportation, low carbon, and good energy efficiency buildings or sustainable waste management.

Business consulting services Duties of the company director

Directors are in charge of the management and control of the company. They take decisions for and act on behalf of the company, usually during board meetings. These decisions are logged in board minutes or in a resolution signed by all the directors of the company. The appointment of directors, other than the first directors, will typically be regulated by the Articles of Association of the company. However, where the Articles fail to make any mention on this point, the Companies Act provides for their appointment accordingly.

RESIDENCY Applying for residence in Malta

Any EU, EEA or third country national who resides in Malta for more than 3 months is obliged to apply for a Residence Permit. There are various grounds upon which an applicant may apply to require a residence permit

Accounting Accounting for leases under IFRS 16

Definition of a lease IFRS 16 represents the first major overhaul of lease accounting in over 30 years. The new Standard will affect most companies that report under IFRS and are involved in leasing, and will have a substantial impact on the financial statements of lessees of property and high value equipment.

Fintech Preventing and detecting the misuse of virtual financial assets: introducing the tools

Technology is rapidly evolving, and this is proven with the development of blockchain technology, cryptocurrencies and other virtual assets. Concurrently, criminals are also advancing in terms of technology use since traditional crimes such as money laundering, theft, drug trafficking and financing of terrorism are being shifted to the cyber world.

Blockchain Can GDPR and blockchain coexist?

A study published by the European Parliamentary Research Service (EPRS) seeks to examine whether the European Data Protection Regulation and the ancillary framework (GDPR) can coexist with the peculiar nature of blockchain technologies. The study argues that the multiple points of friction which have emerged between the GDPR and blockchain technologies are mainly due to three factors:

TAX Say goodbye to the arm's length principle

The G20 has endorsed the The Organisation for Economic Co-operation and Development’s (OECD’S) roadmap for resolving the ‘tax challenges arising from the digitalisation of the economy’. The reallocation of profits and minimum tax proposals that have emerged following a recent round of consultations could put an end to the arm’s length principle that has governed transfer pricing for decades.

Business risk consultancy The code of ethics – why is it important for organisations and professions?

The code of ethics is an important tool which can enhance the reputation and the perception of the public of a profession and an organisation. In fact, local professionals such as lawyers, accountants, auditors and teachers must abide by a code of ethics which is issued by a recognised organisation. Moreover, businesses tend to establish their own code of ethics when they do not have an official code.

Access to Finance How Maltese companies can raise finance through Prospects MTF

A constant challenge faced by our clients is raising finance to fund their ideas and achieve their goals. As part of our service offering, we guide clients through the process of raising funds. Grant Thornton Malta employs a team of specialists from different disciplines who have decades of experience raising finance through various methods, including bank financing, EU funding, capital markets, mergers, acquisitions and private equity.

Cyber security 5 simple steps to protect your office data from hackers

Digital threats to companies are on the rise, and organizations worldwide are investing a growing share of their budgets to secure their networks. A report published by digital security specialists Gemalto reveals that 945 data breaches led to 4.5 billion data records being stolen worldwide in the first half of 2018.Here are a few easy steps to follow in order to mitigate the risks posed by a cyber-attack at your workplace.

Fintech Drivers of the digital era: stay ahead of the competition

The quest for digitisation may be deemed elusive by some, however in switching from postal mail to fax and eventually to email, from paper-ledger to spreadsheet or even to fully fledged process automation, the road to digitisation has already been embarked upon by organisations. Staying ahead of the competition, however, is not about the technology itself, but a matter of strategy.

FINTECH Issuing a VFA from Malta

Malta was the first country to enact a comprehensive regulatory framework to cater for ICOs. This move to regulate initial coin offerings inspired other regulators around the world to move to regulate the space themselves.

Fintech Malta: A digital asset hub providing clarity and certainty through regulation

Malta has led the way in the regulation of the application of distributed ledger technology (DLT), including blockchain, to the financial world, paving the way for the issuers of DLT and digital assets as well as firms dealing with such digital assets.

Artificial Intelligence Human-centric artificial intelligence: a European approach

Since homo sapiens developed from earlier primates c. 300,000 years ago, we have constantly improved technology to serve our needs efficiently and with less effort.

Artificial Intelligence Ethical considerations surrounding artificial intelligence

There is little doubt about the fact that AI and robotics will be two of the most defining technology accelerators of this decade. Apart from their deployment in the field of business, these technologies bear potential to enhance the quality of life of millions of individuals worldwide.

Brexit Brexit: a Maltese perspective

Ever since that faithful day on 24 June 2016 Brexit has been characterized by disarray, discord and disorder. The British Parliament has been in disarray and even after countless parliamentary votes remains undecided on the next course of action. 29th March 2019 should have marked the day the United Kingdom (UK) officially leaves the European Union (EU).

Business Related Services Non-Performing Loans Solutions

Resolving the issue of Non-performing Loans (NPLs) is not just a regulatory problem to address but a way to manage a bank’s balance sheet and increase profitability. Sound management of non-performing loans means that these would be replaced by new, sound exposures.

Business Related Services Non-Performing Loans and the risk posed to banking institutions

NPLs constitute a liability for bank institutions and require an organic strategy to deal with.

Technology Leveraging knowledge in a data rich world - Big Data and Business Analytics

We all heard about “big data”; which is incomprehensibly large data generated by real people. To give you an idea of scale; 90% of all data was created in the last 2 years, and we currently generate c. 2.5 quintillion bytes of data a day.

Technology How companies are using Big Data

Big data analytics refers to the possibility of gathering and analysing a substantial amount of data through advanced Business Intelligence (BI) software systems.

Healthcare and medtech APAC'S ageing population: the opportunities in health and medtech

The Asia Pacific (APAC) region is ageing more rapidly than any in history and Grant Thornton’s International Business Report (IBR) reveals that business leaders in the region view ageing as the most significant threat to their businesses over the next five years. It will reduce the supply of labour, increase wages, and potentially reduce competitiveness. But it isn’t all bad news. Health and medical technology (medtech) businesses are leading the way in identifying rich opportunities in this disruption.

REITs in Malta Can REITs provide new options for real estate finance in Malta?

Real Estate Investment Trusts (REITs) are companies who own and manage various types of properties. These companies earn regular income through the rental of these properties which is then distributed to shareholders in the form of regular dividends. The companies also offer investors the potential to gain from the long-term appreciation of properties within the company’s portfolio.

Travel and tourism Malta’s travel and tourism sector review

2018 was an exceptionally good year for Malta’s tourism industry as the number of inbound tourists reached a record 2.6 million, reflecting an increase of 14.3% over the previous year.

News round up Forecasting the future

Even if many believe the world is getting harder to predict, that hasn’t stopped international publications from trying to forecast the year ahead. Here we round up some of the predictions making headlines around the world

Tax Direct to indirect taxation

How manage the hidden complexities of indirect taxation? It’s not just the immediate demands of VAT/GST that are complex and challenging, but the extent to which it forms part of wider shifts in how businesses are taxed.

Finance The evolutionary progress of money

Progress in finance has facilitated the exchange of value to an automated process, but behind the scenes it has been a centuries’ long process to get where we are today.

Growth iQ Who's embracing in the latest finance technology?

Only around half of businesses have a clear strategy and business case for enhanced digital transformation within the finance function. Is your organisation ready to make better business decisions?

Blockchain Malta leading the blockchain revolution

Many predict that DLT is reinventing and transforming key industries and creating new business models, making every transaction transparent, democratic, decentralized, efficient and secure. The belief in blockchain’s potential is so widespread that financial and tech entities have invested an estimate of $1.4 billion in 2016, which is expected to go up to $2.1 billion in 2018.

Artificial Intelligence How Artificial Intelligence is changing the world

AI has slowly been working its way into businesses. Business Intelligence (BI) systems generate and automatically process a wealth of digital data providing the necessary metrics to efficiently run an organization. Machine learning and AI solutions have the potential to further crunch such data creating unprecedented opportunities for improvement across health, lifestyle, transportation, education and practically every human activity.

Blockchain How blockchain is revolutionising finance

No doubt that blockchain technology presents many opportunities that will keep transforming the financial space. The disruptive technology is exponentially opening up international markets the same way the internet transformed access to information. For those that recognize what blockchain technology has to offer, its potential has no barriers, both for entrepreneurs and consumers who will be able to gain access to any service or assets they need where they are and when they need them.

Budget Malta Budget 2019

Monday 22 October 2018 marks the presentation of the 2019 budget of this government aimed at stimulating economic growth, reducing government debt and delivering a budget surplus year on year.

TAX Taxing the digital economy

Commerce is increasingly digital. Yet, the global tax system is still geared to the needs of a traditional ‘bricks and mortar’ economy. The OECD’s Base Erosion and Profit Sharing (BEPS) Action Plan recognises the need for modernisation and has achieved quite a lot since the issue of its reports in October 2015. However, specific recommendations on digital taxation have been limited and the OECD’s calls for an international consensus on the way forward have so far been unheeded.

Not for Profit Fundraising: adapt your message and medium to your audience

The most recent edition of the Charities Aid Foundation’s World Giving Index(i) reports a global decrease in giving over the previous 12 months. This slowdown is particularly marked among Western countries including the US, Australia, the Netherlands, Germany, Norway and the UK.

IFRS Accounting for cryptocurrencies

Cryptocurrency is digital or ‘virtual’ money, which uses cryptography to secure its transactions, to control the creation of additional currency units, and to verify the transfer of assets. Cryptography itself describes the process by which codes are written or generated to allow information to be kept secret.

INTERNATIONAL BUSINESS REPORT Skills concerns hit new high

Global business concerns over a shortage of skilled workers hit a record high in the second quarter of 2018, according to research from Grant Thornton’s International Business Report (IBR). Some of the world’s largest economies, drivers of global trade, report significantly higher fears. Business leaders struggling to recruit skilled staff should consider automating processes where skilled worker problems are most acute.

INTERNATIONAL BUSINESS REPORT Revenues rise but investment remains flat

The dip in optimism suggests that the global economic cycle may have peaked. Business leaders should therefore consider using increased revenue to structurally invest at this stage of the cycle to ensure long-term prosperity.

Insolvency in retail Will online shopping make retail giants extinct?

Looking at the Maltese scenario, in 2017 only 18% of respondents sold their products online and of these, the majority said that total online sales accounted to less than 10% of their total sales. Yet for the 19% of those who sell online, online sales accounted for more than 50% of their sales, which is a remarkable percentage.

IFRS Accounting for cryptocurrencies

The popularity of cryptocurrencies has soared in recent years, yet they do not fit easily within IFRS’ financial reporting structure. In this Viewpoint we explore the acceptable methods of accounting for holdings in cryptocurrencies while touching upon other issues that may be encountered.

International Business Report (IBR) Women in Business 2018

The percentage of businesses around the world with at least one women in senior management has increased significantly, rising from 66% in 2017 to 75% in 2018. However, at the same time the proportion of senior roles held by woman has marginally declined.

Family Businesses 1.5% reduced duty on intra-family donations. Don't miss out.

The introduced Family Business Act in 2017 saw the introduction of an incentive scheme for family businesses, whereby donations of marketable securities and business property used in a family business would be subject to a reduced duty rate of 1.5%, from the standard 2% or 5%.

GrowthiQ Talent: essential tips to future-proof your business

SMEs may look to automate as they try to future-proof their businesses, but data from Grant Thornton's IBR suggests finding talent is a bigger issue. Read more.

Tax Taxation in real-time: Gearing up for blockchain

The question is no longer whether blockchain will disrupt the tax system, but how far, how fast and how to ensure your business is up to speed. Putting the hype aside, what does blockchain really mean for tax compliance and management within your business? What are the main risks and opportunities? How can you begin preparing for the shake-up ahead?

Funding Finding the funds to make it all happen

With the rapid pace of change in the local business scenario, today’s entrepreneurs are dealing with more complexity and facing new challenges when it comes to sourcing finance for their business ventures.

GDPR Taking stock of GDPR – 10 key changes it will bring about

When it comes to the way companies handle and protect data, things are soon going to change thanks to a new set of rules that are stepping into force as of May 2018. Better known as the General Data Protection Regulation (GDPR) –the new legal framework is meant to harmonise data protection standards across the 28 EU member states and is expected to ultimately reduce compliance costs, complexity, risks and uncertainty and ensure that people’s data is adequately protected.

MERGERS AND ACQUISITIONS Reducing risk in cross-border transactions

Cross-border merger and acquisition opportunities are increasing as healthy company financials in many economies drive an appetite for deals. However, while cross-border transactions can generate new market opportunities, they often bring heightened risk and a range of challenges.

Budget Malta Budget 2018

Monday 9 October 2017 marked the presentation of the first budget of this government’s legislature, one which focused primarily on social welfare. Interestingly, no new income, corporate or excise taxes were announced.

Blockchain Fairer and just societies using blockchain

Although blockchain technologies are mostly associated with Bitcoin and the current ICO craze going on right now, another less mentioned feature that blockchains enable are the use of smart contracts for computation. Not many people are aware of the possibilities that come from smart contracts and such technology will revolutionize the way the Internet works and perhaps how our societies function.

Startup and innovation 7 tips for startups and innovators

Just like no two zebras have the same stripes, no two business strategies are the same. Grant Thornton can help you develop yours.

Intelligent Business Preparing your business for the GDPR

On 25 may 2018 the European Union's new data protection law comes into effect, it will govern all businesses operating within the union and embed a more consistent approach to data protection.

Advisory Valuing startups: a combination of science and art

Typically, the valuation of any new economic asset is based on expected future cash flow, discounted at a rate that reflects the inherent risk facing the business. Getting it right, however, requires a complex combination of science and art.

Innovation Mapping your innovation strategy

Innovation remains a frustrating pursuit in many companies, often due two reasons - lack of a sound business strategy to support and implement fresh ideas, and falling short on financing requirements.

Digital Currency Will our government issue a digital currency?

Blockchain.com CEO and founder Peter Smith has recently stated that within 24 months we will see the emergence of a government-backed digital currency.

Blockchain technology Moving forward

Exploiting the full potential of Blockchain requires a solid technology infrastructure, along with the necessary skills to set it up, maintain and operate it.

Budget Malta Budget 2017

A summary of the main implications of Malta's 2017 Budget, including changes in personal income tax and other taxation, business requirements and more

Brexit Can your business navigate Brexit?

In thinking about the impact of Brexit on your businesses you will want to consider not only legal and regulatory changes but also market reactions, consumer and business behaviours and the wider political and economic environment.

Family business succession planning Family business are the backbone of our industry

Malta’s family businesses employ about two-thirds of the private sector workforce, and contribute more than half of the country’s value added.

Growth Can you make your company more agile?

Dynamic organisations face many challenges. Whether it’s the war for talent, currency fluctuations, trade tariffs, aggressive competition or digital transformation, there are many barriers to growth.

Blockchain Blockchain technology and intellectual property ownership

Blockchain based technology has experienced impressive growth over the past five years. It went from being ignored or unheard of, to becoming a buzz phrase in the innovation and technological world. But it is not only the financial world that can benefit. With its relatively low cost of maintenance, increased transparency, lessened administrative burden and resilience to fraud, Blockchain technology applications are endless and far more radical and diverse, ranging from healthcare to the fashion industry, from solar energy to management of intellectual property rights.

Family Business Reduction on tax on business inheritance comes into force

The Family Business Act came in to force in January 2017 with the aim of facilitating the transfer of family businesses from one generation to the next with the hope of addressing significant succession planning issues.