The Malta Financial Services Authority has warned of money exchange activities being undertaken by unauthorised entities, especially within key tourist locations.

“These activities vary from retail outlets that accept payments in foreign currencies to physical exchange of foreign currency,” MFSA said on Friday, warning that any such activity is considered as a criminal offence and will be subject to criminal action.

It stressed that unregulated activity carries a number of risks for consumers, ranging from the potential for money-laundering to unofficial rates being used to the detriment of consumers.

Companies authorised by the MFSA to provide services falling under the Financial Institutions Act including foreign exchange are subject to an onerous authorisation process, and regular supervisory checks throughout the lifetime of the licence.

“In assessing allegations of unlicensed activities, the Authority considers specific merits of the case and determines what action may be warranted in the circumstances, in accordance with its legal remit,” it noted.

“In fulfilling this role, it cooperates with various local and foreign authorities including the Malta Police with respect to suspected criminal activity.”