The Malta Financial Services Authority (MFSA) has published a new Guidance Note outlining the methodology it will apply when determining administrative penalties imposed on credit institutions for breaches of regulatory requirements. The methodology applies to credit institutions authorised and supervised by the MFSA and, where relevant, to legal persons carrying out unauthorised banking activities. By setting out the factors and processes considered when determining administrative penalties, the Guidance Note promotes a more consistent, proportionate and risk-sensitive approach to enforcement. Administrative penalties are calibrated according to asset-based clusters, ensuring that sanctions remain effective and dissuasive while reflecting the institution’s size and circumstances. The framework also incorporates safeguards to ensure that administrative penalties remain proportionate and do not jeopardise the financial viability of the institution concerned.