Published on CNBC July Issue
 George Mangion, Senior Partner of PKF Malta - an audit and business advisory firm - has been instrumental in establishing numerous iGaming companies on the island and has vigorously championed Malta as a "prime captive insurance destination."
Reaching out for international business from Malta is not always easy, but Mangion's efforts in many ways mirror Malta's developments. He has forged his reputation over a 30-year career building a stable of domestic clients, but was swift to see opportunities for growth abroad, particularly as Malta's integration in the international financial community gathered pace.
The firm was established in 1988 and is now a member of PKF International, a global network of independent firms operating in 119 countries. The association has benefited local clients who increasingly want to look overseas, as well as give Mangion the clout to serve a growing list of international customers.
Malta is now firmly established as a leading iGaming hub. The industry was targeted early by the MFSA and as a result a number of gaming companies came to Malta. But a change in the UK's tax regime succeeded in drawing most of them back to the UK. Since 2004, however, many have returned to Malta. According to the chief regulator, Mario Galea, Malta currently has over 250 licence applications on its books. "As gaming companies sought to go public, our regulations offered them the most protection and credibility," he says. The stringent regulations include anti-money laundering provisions, real time monitoring and the promotion of responsible gambling.
"Malta has proved that prohibition does not work; tight regulation is the answer," says Mangion. A subsidiary of PKF Malta, GMM Business Solutions, acts as a one-stop-shop for gaming companies setting up in Malta. "I work hard to polish Malta's image as an iGaming hub and now we need to make sure they stay here for good. The US embargo has completely transformed the landscape and EU members are still working out how to deal with their monopolies, so I invest heavily in organising conferences to maintain contacts and keep abreast of all the latest developments."
Malta is also coming of age in the insurance sector. The islands are proving to be an attractive captive insurance domicile and are geared up to take advantage of EU passporting rights. IFRS was introduced in 1998 and Malta is one of the few jurisdictions to allow the redomiciliation of companies.
Mangion stresses Malta's advantages. "Malta is competitive because we combine a favourable tax regime with a firm but manageable regulatory environment. The regulator is approachable and we have the man-power to cope. We also have very attractive PCC regulations which so far have only been taken up by one company. PCCs are very flexible and reduce the cost of establishing a captive, which should attract smaller companies in the future."
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