If the Malta Business Registry (‘MBR’) wrote to your company tomorrow asking for documents to confirm who the Ultimate Beneficial Owner/s (‘UBO/s’) are, would you be able to respond on time?

The MBR’s Compliance Unit carried out close to 1,700 inspections in 2025 alone, with similar volumes in recent years, demonstrating that inspections are now an established feature of Malta’s corporate landscape.

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The MBR’s Compliance Unit carries out inspections to confirm that Maltese registered companies comply with the Companies Act (Register of Beneficial Owners) Regulations, which transpose the beneficial ownership requirements established under EU legislation. The power to inspect sits in Regulation 12, and the obligations being inspected sit in Regulations 5 and 6.

In simple terms, the MBR is inspecting whether the company:

• holds accurate, complete and up-to-date UBO information; and
• has notified the MBR of changes within the required timeframes.

Inspections can be carried out:

• onsite at the company’s registered office; or
• offsite, typically via an information request by email.

In both cases, the MBR has a clear right at law to access and verify this information.

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Inspections follow a risk-based approach and being selected does not necessarily mean the MBR suspects your company of wrongdoing. As reported in its Annual Reports, the MBR uses an automated tool to assess how likely it is that a company’s structure could obscure its true beneficial ownership.

Higher risk profiles are more likely to be selected, but no company is exempt.

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Before an inspection, the MBR issues a formal notice addressed to the company’s directors. This typically sets out:

• the inspectors;
• whether the inspection is onsite or offsite;
• the scope of the review; and
• a fixed deadline for response or attendance.

Deadlines are not generous, so having documents readily available is crucial.

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Although document requests can seem extensive and may defer from time to time, they generally fall into three main areas:

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Most issues arise not from the complexity of structures but from records that are either are not kept up to date or missing.

Common issues include:

• BO registers that do not reflect changes;
• missing or outdated UBO identification details;
• incomplete documentation linking UBOs to the company; and
• disorganised record keeping.

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Consistency is key. In practice, that means:

• updating the BO register as soon as changes occur and promptly filing the required updates with the MBR;
• maintaining a clear, up-to-date structure chart detailing the ownership structure; and
• keeping a complete document pack for each BO and each layer of the structure.

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MBR inspections are typically straightforward if one is well organised. However, where records are not up to date or readily available, things can become more challenging, potentially resulting in:

• administrative penalties for missed deadlines;
• ongoing daily fines where updates are delayed; and
• restrictions affecting the company’s ability to carry out certain changes.

The key point is not the penalties themselves (although these can be relatively substantial) but how quickly small gaps in documentation can turn into larger problems if they are not addressed early.

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Once the review is complete, the MBR will issue a follow-up letter confirming its findings. This may range from no action required, to requests for clarification or corrective filings where gaps are identified.

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Fenlex assists clients in maintaining proper records and can provide support throughout an MBR inspection should one arise. Working with an experienced licensed CSP can help companies meet these obligations and remain inspection-ready.