BUSINESS
BDO Malta The only Firm licenced to act as a Systems Auditor and a VFA Agent DO, through its subsidiary company BDO Technology Advisory Limited, was one of the very first service providers to become a licenced Systems Auditor by the Malta Digital Innovation Authority (MDIA).
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To date, BDO Malta is the only firm licenced to act as both as Systems Auditor and a Virtual Financial Assets (VFA) Agent. The licence enables BDO Malta to conduct both Type I and Type II Systems Audits which are based on guidelines and control objectives issued by the MDIA. Systems Audits are mandatory for Issuers and Service Providers applying for a licence under the Virtual Financial Assets (VFA) Act and for Innovative Technology Arrangements (ITA) seeking a voluntary certification under the MDIA certification process. The certification process is focused on five key principles: 1) Security – The system must be protected and completely secure from unauthorised access (both physical and logical). 2) Availability – The system is available for operational use as committed and/or agreed. 3) Processing Integrity – The system processing is complete, accurate, timely and authorised. 4) Confidentiality – The system will protect any information or data that is designated as confidential. 5) Privacy – The system will collect, use, retain, disclose, or dispose of personal information in full conformity with the commitments in the organisation’s privacy notice. The audit can be categorised into two different sets: TYPE I •Carried out on a certain and specified date, and takes an in depth look at the control design. •Typically carried when an ITA is in the process of applying to be certified by the Authority; or when deemed necessary by the Authority, or other Lead Authority in Malta. TYPE II •Carried out over a certain period of time, usually six months. The focus of this Type is to ascertain the operational effectiveness of the controls that are in place. •Carried out periodically during the operational lifetime of an ITA; or on the request of the Authority or other Lead Authority in Malta (e.g. MFSA).
The requirement to conduct Systems Audits came into force on 1st November 2018 as a result of Malta’s new regulatory framework around blockchain activity and Distributed Ledger Technology (DLT). The process to obtain the MDIA’s recognition as Systems Auditor was very rigorous and requires the Systems Auditor to have deep knowledge and understanding of the technology being audited as well as the systems audit principles applied across IT assurance frameworks. Asked to comment about BDO’s receipt of licences from the MDIA and MFSA, Mark Attard, Chief Executive Officer at BDO Malta states, “the MDIA recognition is a significant milestone for BDO as it positions the firm in a truly unique position, as we are now the only service provider in Malta to have obtained both the MFSA VFA Agent licence as well as the MDIA Systems Auditor licence. BDO is now officially licenced by all relevant regulators to support Malta’s blockchain and Virtual Financial Asset industry into its next stage of growth.” Ivan Spiteri, Head of Technology Advisory at BDO Malta adds, “our Tech Advisory and Assurance team worked very hard to obtain this very important recognition by the MDIA. We are immensely proud to be among Malta’s first to be licenced to carry out Systems Audits. We look forward to being of assistance to fast-growing companies in the blockchain and DLT industry who are making Malta their legal, regulatory and operational home.” BDO Malta is the only firm licenced to act as both a VFA agent and a Systems Auditor. The firm has built a dedicated team of licenced specialists, bringing together a range of skills to undertake MDIA Systems Audits and VFA Agent Services.
If you are interested in learning more about how BDO Malta can help your business succeed, get in touch on T: 2131 3060; E: technology@bdo.com.mt www.bdo.com.mt
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