MGA Licensees are required to submit audited financial statements for each financial year by not later than 180 days after the end of such financial year. The MGA, however, appreciates that adhering to such obligation may be difficult for some licensees given that they must undergo a thorough process with qualified third parties. In addition, the situation stemming from the Covid-19 pandemic which has affected Malta in recent times has been of hindrance to the normal timeframes by which audited financial statements may be ready by.
In light of the above, the Authority has informed licensees whose last concluded financial year ended, or ends on 31st December 2020, that the deadline for submission of the audited financial statements envisaged in Article 41 of the Gaming Authorisations and Compliance Directive (Directive 3 of 2018) (the Directive) has been extended to the end of October 2021.
Notwithstanding, licensees are obliged to submit unaudited accounts by not later than 180 days after the end of their financial year, in order for the Authority to maintain visibility over their financial standing.
The unaudited accounts are to be uploaded through the LRMS under the ‘Audited Financial Statements 2020’, after which the Authority will enable licensees to upload the audited version through the same record by 31st October 2021.
In accordance with Article 41 (2) of the Directive, licensees are reminded to ensure that the audited financial statements which are due by 31 October 2021 are prepared in accordance with International Financial Reporting Standards. In the case of B2C licensees providing gaming services by remote means, they are to illustrate the Player Funds Account Balance separately under the ‘Cash and Cash Equivalents Note’ to the audited financial statements, as well as illustrate player funds under the ‘Trade and Other Payables Note’ to the audited financial statements.
Additionally, the Directors’ Report which shall be drawn up in accordance with Article 177 of the Companies Act (CAP. 386 of the Laws of Malta) is to accompany audited financial statements. This requirement shall also apply to companies defined as “small” under the Companies Act.
The requirement to submit the audited financial statements applies to all companies licensed by the MGA, including all companies covered by a Corporate Group Licence. This applies irrespective of whether or not the company was licensed by the MGA during the period covered by the financial statements.
For further information or clarification, please feel free to contact [email protected] where a consultant will be able to assist you further.
