ACT No. XXVI of 1994 AN ACT for/heT /0 omend Ih~ C~n/ral Bank alMo/IQ ACI, Cap 104 BE IT ENACTED by the President, by and ",ith the advice and consent of the House of Representatives, in this present Parliament usembkd, and by the authority of the same, as follows;· (simintotlund)

l lmn!.

Uga Mifsud Bonnici

(1..S.)

President

Ist Novembcr. l994

ACT No. XXVI of 1994

AN ACT for/heT /0 omend Ih~ C~n/ral Bank alMo/IQ ACI, Cap 104

BE IT ENACTED by the President, by and ",ith the advice and consent of

the House of Representatives, in this present Parliament usembkd, and

by the authority of the same, as follows;·

This Act may be cited as tbe Cmlral Bank of Malla

(I)

(Amcoomcllt) Aa. 1994, and Jball be read and ccnstrucd as onc with the

Central Bank of Malta Act. hereinafter referred to a.s "the principal Ad~.

TIle provisions of this Act shaU come into force on such

(2)

date as the Minister responsible for flJ"l;ll1(le may by notice in the QUdle

appoint, and different date.! may be $0 appointed for different provisions

and diffi:rmt purposes of the Act.

The· ARRANGEMENT Of ACT" of the principal Act sNJl be

l.

Arran""*,,, or AG. substituted with the folloy.ing

Sections

°AllRANGEMDo/TOI' ACT

Part I

I ·2

Preliminary

Establishment and Conduct of AffaIrs

Port "

1 • 17

of""'"

Part III

Financial Provisions

18 - 24

Relations ",i !h Government

Part IV

2S - 32

Relations with Banks and Financial

Part V

Institutions

33 - JSC

Relations \lith the Competent Authority

38D - J8F

Part V1

Pan VII

Cum:ncy

39 -49A

General

Pan VU

53 - 5"-.

Section 2 ofthc principal Act shall be amended as follows

immediately after the defmition of "Bank" thell: shall be

(a)

addcrl the follO\Oo1118 new definition

" "bank" means any pe rson carrying on the business of

banking and includes any bram:h. agency or office in Malta of a

bank not incorporated in Malta;

for the definition of "business of banking" there shal l

(b)

be substituted the following

• -OOsiDess of bank inS" means

the husiness of a person ..... bo, as set out in

(a)

sub-section (2) of section 2 of the Banking Act, accepts depo$its

of money from cbe publi c wi thdrawable or repayable on demand

or after a fixed period or after notice or who borrows or raises

money from the public (including the raising or borrowing of

money by the issue of certificates of deposit, debentures or

debentu re stock o r other instruments creating o r acknowledgi ng

indebtedness), in either case fo r the purpose of emplo)ing such

1TIOI1ey in whole or in pan by lending to others ~ otherwise

investing for the aeoounl and at the risk of the person aeccpting

such mOllty; or

any businc$s defined by

the Minister as

(b)

constitu ting the business of banking by an order published in the

Gazette,· ,

"

(c)

immediately after the definition of "b usincss of banking"

as substituted by this Act there shall be added the following new

definition

• · Competent Authority" means that Authority nominated

to regulate the business of banks, flMllCial institutions or other

.

,

financial services·"·

the definition of "COJI1lI1(:rcial bank" shall be deleted;

(d)

(c)

for the definition of - financial institu tion " there shall be

substituted the following

" "financial institution" means an institution licensed

under the Financial Institutions Act. 1994 and includes any

branch in Malta of an institution noc: incorporated in Malta;" ;

~d

in the definition of "savings deposits" the words "on

(f)

presentation of a passbook or" shall be deleted.

For paragraph (d) of section 4 ofth!: princ;ipal Act there shall be

substituted the following

"(d) {O promote a soutld fmaneial structure and to foster an

orderly capital market in Malta;".

Secti0ll6 oflhe principal Act shall be deleted .

Section 8 of the principal Act shall be amended as follows

(a)

for subsection (I) thereof and the proviso thereto there shall

be substituted the following

"(I) The Governor and the Deputy Go\'emor shall be

persons of recognised expcrience in financial matters and shal l

each be appointed by the President of Malta, acting on the advice

of the Prime Minister. They shall be appointed for a period nOl

elIceeding five years hut shall be eligible for re-appointment.

Tncy shall receive S\lch remuneration as shall be set out in their

Itspcx:tive letters ofappointmcnt.";

(b)

for subsection (5) Iheroof there shalt be substituted the

follol'<mg

"CS) The <iovernoI'" and the Deputy Governor shall dc\lOle

the whole of their professional time to the service of the Bank and

while holding that office shall not occupy any other office or

cmplO)menl whether remurlerated or not

Provided that they may-

(a) act or serve as chairmen, govt:rnors, directors or

members of any boord, commission or committee, by

whatever name called, established by or uoocr any law 10

promote, regulatc or cnquin: into mallers affecting cum:ncy,

banking or flnanoc in Malta;

(b) become governors, directors or members of the Board,

by whatever name called, of any international authority to

which the Govt:mmcnt shall ha\'e adhered or gi\U1 support

or approval ;

(e) become chairmen or directors of any body corporate in

Malta specified under paragraph (i) of su bsectiol1 (I) of

sectiOllIS of this Act.",

For p3.la!'3ph (b) of subsection (I) of section It of the principal Amcudmelll of ~ II

7,

Act then: shall be substitutod the fot~ina

"(b) is a director or salaried OfflCiaJ of an institution

rqulatcd by the Bank or holds more lhan one per centl:m of the

ordinary paid up Jhare capilal ofsuch instilulioa;",

8, Immediately aner seclioo 13 of the prineipal Act there shall Addition of new lOCIion

be added the following new section

"£Xc/lIS/OIl of/iab/lily.

11Ie Bank. directors, officers or scrvanlS thereof, and

IlA.

any other person appointed to perform a function under this Ad, or

under any rules or reaulations made thereunder, shall not be liable in

damages for anything done or omincd to be done in the disclwge or

purported discharge of any functions under this Act, or any rules or

regUlations aforesaid, unless the act or omission is 5ho\I.n to have been

done or omittod to be done in bad faith.".

,.

Section 15 of the principal Ad shalt be amc:oded as follows

in paragraph (a) of subsection ( I ) thereof for the words

(I)

"Part VI" there shall be substilutod the words "Part VU";

for panaraph (c) of Jubsa:tion (I) thereoflhere shall be

(2)

substituted the foUowins

"(e) purt:hasc, sell, lend or deposit gold or silver eoin or

gold, sil ver or other precious metal in bullion or in any other

form '· '

"

in paragraph (d) of subsoccion (I) thereof for the word

(3)

"Minister" there shall be substituted the \\ord "Board";

(4) for p,aragrapb (t) of subsection (I) thereof there shall be

subSlttutod tbt fol~'in8

"(t) purchase, sell, discount or rediscount ·

(i)

Government Treasury Bills forming part of a

public iuue;

(il) commercial or financial instnunerllS as may be

appro\l'Cd by the Board;";

immediately after pangrnph (t) of subsection (I) thereof

(5)

there shall be added the following new pangraph

"W issue, purchase, sell. divounl or mijeco"nt fiIwlcial

instruments bearing !he Bank's name and sueh instruments shall

be in such form and for such tenns and maturities tu may be

approved by the Board;";

paragraph W of subscctiOll (I) thereof;s to read (h);

(6)

(7)

in paragraph (h) tu renumbered of su bse<:tion (I) thereof

for the words "of the demand liabilities of the Bank;" there shall be

substituted the words

·ofthc wresate 0(

the value of the Bank's noces and coins issued,

(l)

excluding coins issued for numismatic purposes;

the deposit liabilities ohlle Bank; and

(ii)

the nominal amount of financial illli!ruments

(iii)

issued and outstanding in terms of paragraph (g) of

lubse<:tion ( I) of tlUs se<;;lion;·;

in the proviso 10 paragraph Ch) of subsection (I) thereof

(I)

substitute the words ·undeT" section S2 of this Act;" by the words

"under section 11 of this Act;";

paBgnlpM (h) and (i) of subsection (I) Ihcrcof arc 10 read

(9)

(I) and (i). and paragraphs fj) and (k) are 10 read (le) and (m);

(10) for paragraph (k) u rcnumbe,cd ofsubsection (I) thereof

there shall be substituted the following

"(k)

gfant 10 any bank im:orporalcd in Malta loans and

advances on such (emu and conditions as may be approved by

the Board and for such periods not exceeding twelve months

against promi1SOry nou:, SCCtued by the: pledge or deposit With

the Bank of·

(i)

gold or sil \'er coin, or gold, sil\'er or other

precious metals in bullion form ;

publICly issued Governmenl Treasury bills

(ii)

and securities of the: ~'t'O\J1leD1 whICh have been publicly

offered for sale maturing "ithin tWally yeaf1;

financial instruments issued by the Bank;

(Hi)

(IV)

deposits held al the Bank ;

other marb:table securities as may be

(V)

approved by the Board;

such bills of exchange and promissory notes

(vi)

as are eligible for purchase, discount or rediscounl by the

""",. ,

(vii)

documents of title 10 goods in Malta. duly

iru;ured;";

(11) inl1llediatety after paragraph (le) as renumbered of

subsectIOn ( I) thereof there shall be added the following new

paragraph

enter inlO contractual agreements .... ith banks

"(I)

incorporated in Malta for the repurchase and reverse rcpurchase

of publicly issued securities of or guaranteed by the Government

and of other financial instruments as may be approved by the

..

Board'· ·

in pl\Tll.graph (m) as renumbered of subsection (1) thereof

(12)

fot the ..... ords "to any COITlIllCrcial bank" there shal l be substituted the

wo rds "to any bank incorporated in Malta";

paragraphs (I), (m), (n), (0) and (P) of subsection (I)

(13)

thereof arc to read (n). (P), (q) , (r) and (s);

( 14)

for paragraph (n) as renumbered of subsection (\) thereof

there shall be substituted the following

purchase and sell

"en)

(i)

convertible foreign currencies;

and

(H)

negotiable certificates of deposit

bankers' acx:epcances, maturing ..... ithin leIl )UB;

(iii)

floating rate llOI:es maturing within leIl

years;

(i ... ) other internationally accepted marketable.

instruments maturing .... ithin ten )'CaJS

Provided that the instruments referred to in subparagraphs

(il) and (iii) of this paragraph shall be of first class standing and

denominated in convertible foreign currencies and their value

shall not exceed twenty-fh-e per centum of the total assets

referred 10 in subsection (3) of section 19 of this Act.";

(15) immediately after paragraph (n) as renumbered of

subsection ( I) thereof there shall be added the following new paragrap h

purchase, sell, di5N'llJnt and rediscount bills of

"(0)

exchange dra .... n in or on places abroad and maturing ""thin

ninety-three days exclusive of days of grace from the date of

acquisition and Treasury bills issued in or on places abroad and

maturing within IwO years;";

in paragraph fp) as renumbered of subsec:tion (I) tbCIoof

(16)

for the: words ·purchase and sell" then: shall be substituted the words

·purchase, sell, deposit or lend for consideration";

(17) paragraplls Cq) and (r) of subsection (I) thereof are 10 read

(t) and (v); and

(18) immediately after paragraph (t) as renumbered of

subsection (I) thcrt(lf there shall be added the folla-.mg new

paragraph

10 exercise tbe functiQf1S assigned to it under the

"(u)

BankingAct, 1994;",

Section 16 afthe principal Act shall be amended as follows

toIid .... ' I ...... primpoli.l-artikolu gdid

in paragraph (b) thereof the words "in paragraph (b) and

(\)

(n) of section 1 S" to read "in paragraph (i) and (q) of section 15";

in paragraph (d) thc:rt(lf the words "and in section 21 of

(2)

this Act" shall be deleted, and the v.'Ords "in paragraph (k) of section

IS" and "in paragraph (j) of section IS" should read "in paragraph (m)

of section IS" and "in paragraph (k) of section IS· respectively;

in paragraph (f) thereof immediately after the v.'Ords "on

(3)

demand" there shall be added the words 'or as provided for under

paragraph (g) ofsubseclion (I) of section 15 oftllis Act"; and

in paragraph (i) thereof for the word "Minister" there

(4)

slwl be substituted the wonl "Board".

For section 18 of the principal Act and the marginal note thereto

there shall be substituted the following

"Capilal and Reserves.

/l·Bank, dirclluri, funzjonarji jcw impjcglli tiegllu, \J

kull pe:rsuna 0 1'1 ... appuntata bicx tckltita xi filtlzjoni talll dan I-All,

jew ' t.al'It xl rcgoli jew regolamenti maghmula latiN, nu jlcunU)C

resporlsabbli &had-danni dwar dak li jflf jew jooq05 milli jsir

D.etekuzzjoni jew ctekuzzjoni mahsuba Ia')[1 funzjoni ta/'lt dan I-All,

jew xi regoli jew regolamen li kir i~mm.i aklat 'I (\Iq, kenun il-darba

dale li jsir jew jonqol li jsir j inlwcnI bIIlla li j kun SIr jcw naqas li jsir,

skond il·kat, in nMle ftck.",

,.

L-artikolu 15 ta' I-Att printipaJi ghandu jiti emenm t kif gej

( I)

fil .parJgtllfu (I) la' subartikol u (I) lieghu min flok il·kliem

"Taqsi ma VI" ghlndho m jidhlu l·klitm "Taqsima VU";

(2) minfl ok iI.ptf1Ignr.fu (t) Ill' suba.rtikolu Cl ) liegllu ghandu

jidhol dan li iej

"Ct )

j ill.tr1 , jbiegb, j islef jc:w j iddtpotita flul lad-dcheb

jew IIII · fidda, jc:w debeb, tidda jew metlm prenj u.ti fingotti jc:w

h i fOmlll oI'trJ ;~;

fiI· parJgtllfu Cd) ta' sublrtikol u (I) tieghu mi nflok il-kclma

(3)

~Mjnistru " gbldbl lidhol il·kclma" 'Bord";

(4) minfl ok iI·parJgrafu (t) Ill' 5u bartikolu ( I ) lieghu ghan du

j idhol dan Ii sej

-Cl)

j ill.tri, ibicgh, jiskon la jew j iskoo\.1l mill -8did -

bills I.!-Tetor lal·Gve m li jUfu rmlw parti

(i)

minn hrut: pubbl iku;

(ii)

sltUmenti kummercjali jew finanzj.rji kif

approvati mill -Bord;";

minnufih WIll1l I-paragn.fu (1) la' subartikolu (I) tieghu,

(5)

ghandu j idhol dan il-paragn.fu gdid li gej

tuui ta', jiJ[tri, ibiegh, jiskonta jr;w

~W

jag,llmcl

jiskonla mill-gdid stnlmenti finanzjarj i fisem il-Ihnk u dawn

l-isltUmenti ghandhom ikunu f fonna u &hal termin i u

mlturillj ict kif j islghu jkunu .pprovati mill -Bord; ";

il -pIUlIgrafu W ta5-subartikol u (I) tieg.hu r)landu jigi

(6)

(7)

rparagnfu Cb) kir enumerat mill-gdid ta' subart.ikolu ( I )

licgh u, ghlll -k1iem "tad-demand 116b#ities tal-Bank,", ghandhom

jidhlu I-kl iem

" ta' I ... ggregat

1I1-valur tal-bilje ui tal-Dus u tal-munita mal'u'Up

(t)

mill -Bank,

barra minn mUDili mabrugl ghal ghaniji el

numismali ~ i ,

(ii)

tad-dcpotiti pa$5ivi tal-Bank; u

(iti ) la' I-ammon t nominali ta' strumenti finanzjarji

mallruga u gh.dhom ma skadcW)t skond it-termini tal-pal1lgrafu

(S) tas·subartikolu ( I) ta' dan ]·artikolu;";

fil .JV'I'I'1So tal-paragn.fu (1'1) tas'liubartiko]u (I) tieghu

(8)

minDok il·kl icm "skond I-artikolu 52 ta'dan I_Att;M ghandhom jidhlu

]·k1iem "skond I-&nikolu 18 ta' dan I·A tt;~;

(9)

il -paragra fi (b) u (i) tas ·subartikol u (I) tieghu ghandhom

m,

jigu j aqraw (i) u

u I-paragrafi (j) u (k) ghandhom jigu jaqraw (k) u

(10)

minflok il-paragrafu (k) kif enumerat mill·gdid ta'

subsrtikolu ( I) ticghu ghandu jidhol dan It gc;

"(k) jagllli lil J[i bank inkorporat fMIllIa , se lf u avva nri

b'dawk il-paltijicl u lrundizzjonijicl kif j islghu jkunu approvali

mi ll -Bord u glial perjodi stabbil iti ta' mhwc itjed minn !nu

il -nhar kontra biljetti ncgozzjabbli alis igurati bi r-rahan jew

bid-depotitu ma' I- B.nk Ia'-

(i) mUDiti tad-dchcb jcw t~l-fidda jew dchcb, fidda

jcw metalli ohra prezzjuti fforma la' ingolti;

mahrug.

bills

tal-Tetor

tal-Gvem

(i;)

pubblikament u Ijlol; tal -Gvem li jkunu gew offiuti

pubblikament gllall -bejgh 1i jiskadu fi tmicn ta' mhux

alrtar minn ghoxrin SCIlA;

sltlJrncnti .fioaDzjllrj i mahrugll mill-Bank;

(Hi)

(iv)

depoti ti la' nus mitmuma ma' I-Bank;

titoli ohra Ji gtlalihom hcmm suq SllI.bbi lit

(v)

kif jista' jkun approval mill-Bord;

(vi) dawk il-kambj ali u biljetti ncgozjabbli Ii

jistghu j inxtraw, jigu skunllli jcw skuntati mill -gdid

mill -Bank;

(vii) dokument i la' lilOlu glial oggel1i fMllila.

assigul1lti ki fimiss ;";

( 11)

minnufih wara l-pilrgarafu (It) kif enumeral mill-gdid

tas-subutikol u ( I ) lieghu ghandu j itdicd dan il-JlIIl1Igrafu gdid I i gej

jidhol fi ftchim kon ltll1lwali ma' banek inkorpol1lti

"(I)

fM.lta ghal lrpwrhllSe U n lVCI'SC lr~ ta' thall mahruga

pubblikament jcw glnm titi mill -Gvem jew la' stroment;

finanl!jarji ohra lrifj ilita ' jkun Ipproval mm-Bord;~;

(1 2)

fil -pal1l grafu (m) kifcnumcral mill-gdi d las-subartikolu

(I) lieghu minfiok iI -kJi em "Iil kul! bank kummcltjali" ghandhom

j idhlu dawn il-k.l icm "Iil kul! bllllk inkorpol1l1 rMal!a";

il-paragno. fi (1), (m), (n), (0) u (P) tas-subartiko lu (1)

( 13)

licghu ghandhomjigu jaqnlw (11), (P), (q), (r) u (s);

( 14) minDok il-paiagrafu (n) kir cnumeral mill-gdid !as-

subartikol u (1) licghu ghftndu jidl'lol dan li gcj

jixtri u jbicgh

"(n)

(i)

Dus cSlcri konvcrtibbli

(ii)

tcrt ifi kali 11.' dcpotiti negoujabbli u

bankers' MUplll1lres., Ii jiskadu fi ?.micn la' mhux aklar

minn gl'laxar slI ill;

biljelli OOlllillg ralc li jiskadu fi tmic n la '

(Hi)

mhux aktar minn ghaxlt snin;

at~ettati

(i Y)

,trumenti

finanzjarji

oJ\nl

intemattjoDalmcnt u li ghalihom hemm suq slabbil it u li

j iskadu fi tmien ta' mhux aktar minn ghant snin

Itda \.istrumenti msenunija fis.subpal'agrafi (H) u (iil) ta'

clan il-patlgralU gtlandhom. ikunu ta' \ ~wwd klllSsi u

rdenomi nuzjoni ta' flus barranin konycrlibbli u I· Yalur tagl'lhom

nu. ghandux ikun itjed minn tlamsa u ghoxrin fi l-mija ta' I-assi

totaH msemmij a fis-subanikolu (3) la' I-arlikol u 19 ta' dan I-A n.";

( IS)

minnufih wara I·paragrafu (n) kif c:numcrat mifl-gdid

t&$-subutikolu ( I) tieghu ghandu jitdied dan il -paragrafu gdid li ge;

"(0) j:lltri. j biegh, jis kon ta u jiskonla mi ll-gdid kambjali

mat\nJp f'postij iet Jew fuq postijiet bam. minn Maltl u li jisb du

fi tmicn tliCla u disghin gumala bma mill '1,ranet 1.1' grnzja

mid-dala ta' I-akkwist u bills tat·Tetor matlrup f'postijicl jcw fuq

poslijicl bun minn Malta u 1i jiskadu fi tmicn sen lej n ;~;

( 16) Ill -paragrafu (p) kif cnumcral mill -gdid tas-subartikolu

( \ ) licghu mi ntl ok il-klicm "jill \ri u jbicgh" ghandhom j idhlu il -kl icm

"jilllri, jbiegh, jiddcpotita Jew jislcf ghal rcmuneraujoni";

( 17) iI -pang.rafi (q) u (r) tas-subarti kolu (l ) ticghu ghandhom

jigu jaqraw (I) u (Y); U

( 18) minnufih wan l-paragralU (I) kif enumeral mill·gdid

las-.ubartikolu ( I) ticghu ghandu jitdied clan il- pang.rafu gdid li ge;

"(u)

biex jet.ertita l-funzjonij ic l assenjati lil u tahl I-A t!

ta' 1· 1994 dwar il-Kummcrt Oankalju;",

10, L·artikolu 16 ta' I-An printipal i gl\lndu jigi cmcndal Id r gej

I.' I·An pri"iplU.

<I) fil -paragrafu (b) il-kliem "Ill-paragrafu (h) u (n) lal -klawtola

IS" ghandu jinqara "fi I-paragra fu (i) u (q) 1.I]· kJ awto la 15 ";

(2) Iil -paragrafu (d) ticgtlu il-klicm "u r.rtikolu 27 ta' dBn

I·A"" ghandl'lom j ithllSliN u l-klicm "Iil-palllgrafu (k) tal -klawtola

15" u "fiI-palllg.rafu (j) \al-kllwtola 1 S" ghlndu jinqBlII "fil -pata.gra IU

(m) laJ·klawtola IS" u "Iil-paragrafu (k) tal -klawtola [S"

rispelliYament;

(3) fil ·pata.grafu (t) licgtlu minnufih Wlra I-kl icm "lUq \alba"

glu ndhom ji1.diedu I-kl icm "jew tltlt id-disposil:.:jonijiet lRI·paragralU

(t) tu·subBrtikolu (I) ta' I-a rtikolu 15 ta' dan I-An"; u

(4)

minnok il-kelma "Ministru"

(i)

fil-paragrafu

tieghu

&f'Jandha tidhol il-kelma ~Bord".

11. Mintlok I-artikolu J8 la' I-At! prin~plJ i un -nota marginal i

lie&l\u ghandu jidbol dan li gej

"XapiW u Rizrrvi

(I) The Bank shall have an authorised capital of fi ve

million Maltese liri IYhieh shall be fully paid and ~haU be held

exclusively by the Government.

The Bank shal l maintain a Genera! R.cscrve Fund

(2)

and a Special Reserve Fund.

The General Reserve Fund and the Specia! Reserve

(3)

Fund shall not be less than tv .. o million Maltese lid and five million

Maltese liri respectively.

The Special Reserve Fllnd shall be available for

(4)

those investments provided for in paragraph (i) of section 15 of this

Act or for any other simi!ar purpose approved by the Minister.

(5)

With !he approval ofthc Minister, further allocations

may be made to both the Gencl1l1 Reserve Fund and the Special

Reserve Fund as may become necessary from lime to time." .

For subsection (2) of section 19 of the principal Act there shall Amendment 0( soaioD 19

12. be substituted the following

-(2) The relation of the value of the rescrn: o f external assets

to the value of the Bank's liabilities undu pangraph (h) of subsection

(I) of section 15 of this A~ shall be determined and may be varied by

the Minister on the recommendation ofthc Board by a directive issued

under section 32 oflhis Act and such detenrunation or variation shall

.be duly notified in the Gazette. ~.

13. The proviso 10 section 21 ofthc principal Act shall be dcl~ed.

F()f" subsection (4) of section 24 oftlle principal Act then: shall Amo:ndment of seclion 24

14. be substituted the following

"(4) After such allocations as arc referred to in subsection (4)

of section 18 of this Act have been made, the remainder of the nCt

profits established as aforesaid shall be paid to the ()Qvcmmenl.- .

For section 27 of the pri nci pal Act there shalt be substituted the SubstilWian or Kdiall1

15. follov.ing

"27 Any balance of a temporary advance made by the Bank

to the Go\'Cmmcnt and still outstanding and unpaid on the dale of the

coming into force of this section shall be repaid in full by the cnd of

the calendar year when this section comes into force.".

16. For section 32 of the principal Act theTC shall be substi tuted the Am<:n<Imo:>lofKdial12

follo\\1ng

-32. The Minister may. if he thinks it necessary in the national

interest.. and after consultation \\; th the Governo r of the Bank or as

provided for under subsection (2) of section 19 of this Act, give to the

Bank such directions in writing as he may deem appropriatc in terms of

paragraphs (b) and (c) of section 4 of thi s Act , and the Bank shall

comply with such dircctions.".

17. Immediately after section 32 of tile principal Act and immediately

preceding section 33 theralf for !he heading "PART V RELATIONS wrTH pTllII:.pol Act.

1lM'XS" there shall be substituted ·PART V RElATIONS wrrn BANKS AND

FfNANCIALINSTTTUTlONS" .

Stttion 33 of the principal Act shall be amended as follows

in substction (1) thereoftht word "commercial" shall be

(a)

deleted and ill1llledialely after the words "deposits from such banks"

there shall be added the words "and financial institutions"; and

in subsection (2) thereof the word "such" shall be deleted.

(b)

For section 35 of the principal Act there shall be substituted

the following

"35. The Bank shall scelc the co-operation of, and shall

co~ratc with, banks and financial illstitutions in Malta to further

' l1ch policies not inconsistent with (lIis Act as shall be in the national

interest." .

Section 37 of the principal Act shall be amCllded as follows

(a)

in subsection ( 1) thereof for the words "may require

commercial banks in Malta" there shall be substituted the words "may

require banks carrying on the business of banking in Malta";

in 5ub$CCtions (2), (5) and (6) thereof the ..... ord

(b)

"commercial", wherever it occurs, shall be deleted;

subsections (4), (S) and (6) therrof shall be renumbered as

(c)

subsections (5), (6) and (7); and

immediately after subsection (3) thereof there shall be

(d)

added the foUo""ing new subsoction (4)

"(4) NOl\.\ilhstanding whal is provided for in subsections

(I). (2) and (3) of tIW section, the Bank may. at its discrdion,

allow any bank as is referred to in subsection (I) of this section

10 make dra ... ings from its re5eMi dcp05its to meet temporary

delicienc:es in its ... 'Orking balances ... ith the Bank

Provided !hat such drawings shal l be made and

repaid in such manner and within such period as the Bank may

from time 10 time by notice 10 the banks prescribe;

Provided further that in the event !hat a bank fails

10 repay sueh dra\\i ngs in the manner and period prescribed, the

Bank may charge interest at a rate not occcding five percentage

points per annum ovcr the Bank's minimum di$COWlt rate on any

unpaid amount as long as such default persists.".

:no Section 38 of the principal ACI shall be amended as follows

(a)

for wb$oction (I) thereof there shall be substituted the

Notwithstanding an)'wng else contained in

"(I)

any other taw. the Bank may from time to time: determine

and aMOUlICC

(a) the maximum or the minimum nltcs

of inten::st "ilid! banks may pay on depos its or bolh

wch maximum and minimum nuts

the maximum peroentase matJlIl 0\'eT

(b)

the Bank's minimum discount rate whieh banks and

flll8Dcial instirutions may c:hatJe on Ioaru and

advancct; ditretmt margins may be set for different

categOrlc:$ of lransadions or for different cconomie

sectors."; and

III flIblc :tiorI (2) thercofthe word "conunercia.I" dIaIl be

(b)

Immc:diatdy after section 38 of the principal Act there shall be Additiom of DCW II!ttioru

added the follQo.l.ing new .soctions

·R~pIQrion

oJloons ond odvoncu by bona Qnd jll'ltmclol

i/UtirutiQl1l.

The Bank may in respect of Ioaru and advances Brantcd

by banks and financial institutions

prescribe the purposes for which these mayor may

(a)

not be ma<k;

prcscribe maximum maturities and the type of

(b)

security that may be required;

(c) establish limits for any particular Cltegories of

loans and advances or fOf the toW amoullt OI.Iutandilll.

AutU' htld by bona andj/nonc/a/lmllfultons ouWd, MD/ID.

The Bank may detennillC from time to time the amount

that banks and financial institutions may hold as assets oouK!e Malla.

Information by banks.

)8C. (I) The Bank may requ1re banks 10 submit such

infonnalion as the Bank may require in the discharge of its duties

under this Act.

Any information ~ub mitlcd by banks shall be

(2)

regarded as secret and confidential except as provided for under

section 38F of this Act .

(3)

The Bank shall prepare and publ ish consolidated

statements aggregating the information so furnished under this section

and under subsection (I) of section 380 of this Ad.",

23. Immediately after new section Jlle added 10 the principal Act

by section 22 orthi s Act there shall be added the followirog new Part

·PARTVI

REl.AnON~ wm! TIlE COMPETENT AUTHORITY

Information, inspection and reponing by the Competent

Authority.

380 (I)

The Bank may require the Competent Authority to

pass to it any information in the po:ssessioo of or accessible to the

Competent Authority which is necessary for the Bank in the discharge

of its duties under this Act or any other Act.

The Bank may, in writing, request the Competent

(2)

Authority to inspect, verify and file a report 10 the Bank on any matter

which the Bank may reasonably require in the e.~en::ise of its duties

under this Act or any other Act and the Competent Authority shall

comp ly with such request.

Informallon 10 Competent AUlhorlty.

The Bank shall pass to the Competent Authority any

lSE.

inform.:uion in the possession of or accessible to the Bank whcn so

requested by the Competent Authority in the c.""crci$C of its duties

under the: Banking Act. 1994 or any other Act.

Confidentiality.

38F . Any information obtai llCd by Ihe Bank pUTSuanlto

nc

section

of this Act may be communicated to Ihe Competent

Authority which shall receive such infonnation subject 10 the duly of

professional Sl,Xrcey.".

A

9SS

24. lmmcdiately after new section 38F added 10 the principal Act by AmendmmlofhudinB

section 23 of this Act and immediately prccc:ding section 39 of the of.J>a:t VI of the

CURRENCy" there shall be pru>Clpal AeI.

principal Ael for the heading "PART VI

substituted "PART VU

CURRENCY",

Ammdmc:m. of !CCli<1II ] ~

Section 39 of the principal Aet shall be amended as follows

25. of the prin<i~ Act

(a) for subsections (1) and (3) lhereofthcre slWI be substituted

the foUo .. ing

"(1) The Maltese lira shall be divided into one hundred

cents and each cmt shaH be divided into ten mils .

The Minister may make regulat ions regarding the

(3)

treatment of the Maltese lira for accounting purposes."; and

subsections (4) and (S) thereof sball be deleted.

(b)

The proviso to subsection (2) ofscction 42 of the principal Aet Arno:ndmmlofllOdi<1ll41

26. shall be deleted.

of the principal Act

The proviso to subsection (2) of section 43 of the prineipal Act Amendmenl of_lion 4)

27. shall be deleted.

of the principii Act

28. In the proviso of section 45 of the principal Aet for the words Amondmenl ofJeClion 45

"not exceeding onc year" there shall be substituted the words "not of the principoJ Act.

exceeding three years" ,

In section 48 of the principal Act for the I\-on:Is "1IOl exceeding Amcr.d>" ... 1 of!leCt1Oll 48

29. ten liri" theTe shall be substituted the words "Il0l. c.""ceedin8 fifty lin".

of tbc Jrinri".1 Act.

For subsection (I) of section 49 of the principal Act there shall Amendmtnl of section 49

30. be substituted the (ollolling

or the principal Act.

"(I )

Wbosoe\'er counterfeits or lightens or impairs or melts

do\\n any coin or introduces or utters any counterfeit or debased coin

knOll;ng thc umc 10 be counterfeit or debased shall be liable, on

conviction, to imprisonment for a term of not less than thineen months

and not exceeding nine years

Provided that where a counterfeit or debased coin is introduced or

utten;:d by a person wl10 pro\'es that at the time at which it came into

his custody or p<)5$CS5ion he did nO( know the same to be counterfeit

or debased, the punishment shall be reduced 10 a Icnn of imprisonmtJIt

ofoot less than IWO months and nOlI exceeding three years ,",

Immediafely after section 49 of the principal Act there shall be

J 1.

adeW the following new section

"RtproductlOfl a/nOles and coins.

Notwithstanding anything contained in the fon:going

(I) il-8ank jis\.l' jitlob lill·banek jaghtu dak it-taghrif

li I-Bank ikol1u btonn liI-qadi tad-dmiriji el tieghu lallt dan I-Alt.

(2)

Kull taghrir mopt; mill -band: ghandu jigi

kkuosidral taht scgretc:aa u kunfidenzjali minbeml dak mogbti WIt

id-disposizzj<mijicl ta' J-artikoJu 38F ta' clan I-AIt.

(3)

!I-Bank

gllandu

j ipptepatl. u j ippubbJika

retokontijiel konsolidati 11 jigbru f1imkien I-informazzjoni hekk

moglllija lallt dan I-artikolu kif ukoll dik talIt subartikolu (I) a'

l-artikolu 380 ta' dan I-All''.

Minnufih wara l-artikolu gdid 38t mitjud ma' I-A ll printipali

23. bl-arllkol u 22 ta' dan I-An ghandha tidhol din it-Taqsima gdida kif gej;

"TAQSIMA VI

REU.Z.ZJONUIET MA' l..AWTORITA' KOMPETENTI.

380. (I) !I-Bank jista' jillob JiJI-AWlorita' Kompetenti biex

tghaddilu lrull taghrir fiI -pusscss ta' jew attcnibbl i gh.tI -Awtorita'

Kompetenti li I-Bank ikol1 u btonn fil-qadi tad-dmirijiet tieghu WIt

!!an I-An jew xi Aft iebor.

(2) I1 -Bank jista' jitlob bi l-miktub li1l -Awtorita'

Kompetenti bicx tetamina, tivverifika u tis.sottomctti rapport

liIl-Bank fuq INIl matelja li I-Bank jista' I1Igonevolnx.nt j itlob

fil-qldi tad-dmirijict ticgl'lu WI t dan I·An jew Id An ichor u

I-Awtorita' Kompetcnli gI'Iandhl tilql' din it-talba.

Tlg/In·fJill·A wtoritl' Kompdcnli.

JI -BIIIk gl'llI1du jgl'lllddi liII-Awtorita' Kompctcnti kull

tagl'lrif fil -pussess ta' jew accc$.'l ibbli gblll -BIM met. jkun mitlub

mi ll·Awtorill' Kompetenti n-eurtizzju tad-dmirijict lag.l\ha taIItl-An

la' 1· 1994 dwar K.wnmert Bankarju jcw taIIl xi An ichor.

Konlidrnzj.ali11l '.

Kull tagl'lrif migbur mill-Bank skond I-artikolu )Se la'

dan I-All jista' jintbagh.at lilI -Awtorita' KDmpetcnti u clan it -lagl'uif

gI'Ilndu jigi Ilnlnat bllal. obhl igu la' sigriet profc$.'ljonali. ~.

A

MiMUfih wan l.artikolu idid 38F mitjud ma' I-All printipa li [me" II'·~"'I.

2..

bI ' arlikoiu 2J a ' dtn I·A tt u miMufih q.bel l-artikoJu 39 la' I-An ..... T ......... VI

FUlS~ ghandhom 1I . ...... n

printiplli minflok il-Jdiem tat·tilolu "TAQSDU. VI

jidlllu 1·k1iem "TAQSIMA VII FLUS",

pri.tlpoti.

E-" Uo' I·arti.kol.]9

lArtikolu 39 la' I-All priotipali &handu jigi emcndlt kif itj

15. 11' I-AII pri.tipoli.

minDok is-suNrti koli (2) u (1) tiegbu ghandu j idl'lol !!an

(a)

Ii iej

II-lira Mllti;' !kw malj5UITl& rmit! ttnldmu u

~(2)

kul! tcntetmu j kun mtqsum rJ,huar millctmi.

(3)

I1-Minisll'U ji5'" ;ohmg regal.menl i dwu

il-tnlltament tIIl· lil'l MaUlj_ &h.1 5kopijicI ta' kontabilila'. ~; u

is-subartikoli ( .. ) u (S) licgllu ghndhom jitflasstll.

(b)

lI -pI'O"1jo li hcrrm mu-sublrtiko lu (2) ta' l-artikol!! 42 la' I·An Ezr ' p1 , 10' I-oniko .. 41

26. printipali ghandu jithlSSlr.

11' loAn priatipoli.

17. lI -pro"':SV li bemm mlHubettikolu (2) la' l-artikolu 43 ta' l·An E :, 11' I·artikol. 4J

priociJlllli &hlndu jitbusar.

1&' "All .,n.tipoli.

21. Fil ' pft",jso li hc:nun ma' l·ar1i kolu 45 ta' I· An printipaJi £mow to' I-.rlikol. 4S

minOok il ·kli~m "mhux itjcd minn ~naM r,handhom j idhlu I ·kli~m I.' 1-An priati,.ll.

~mhux itjed minn lI~n ~in ",

FI·ltIikolu 48 ta' I· AII printipilli minOok il-kli~m "ta' mhux f ' .... to' 1-anikal_.1

29. i tj~d minn ghaxar liri~ r,handhom jidhlu 1· k1i~m "la' mhux itjcd minn 1.0' 1-AII pri-tipali

h~msin lin",

MinOok is·subflrtikolu (I) ta' [·.rtikolu 49 ta' I·An prin~ip'li I"" .. d. to' I·.nlkolw 49

10,

11' I- AlIl"'io.ti p"~,

,handu j idhol cian li g~j;

Kult min jirr.lsilika Jew ih.fJcf il. pit jew i hd.1~n

"(I)

il·kwaJita lA' xi munita j~w id~wwiblla jew j introduti jew imexx i xi

munita r.lu jcw imhd:tn. meta jkun j.r li I·isless tlcun r.lu jew

imhattnl jchel, meta j insab bali, pri&UMrij. g,hal tmitn ta' mhux

anqu minn IltlWt il·xahar u mhux itjcd minn diy' snin

]tda Ji meta munita falsitikata jew imhllJ.t.na tip introdotlll jcw

imml.')(xijj~ minn persun. li tipprov. li fit-:Unicn 1i fill gict r dcjha jcw

fil-pusscss taghh. ma klcnitx tar li l-istc15 lticncl f.lsifikata jcw

imha1.1.na, it-piena g,bandh. tigi ridolta glial tmien ta' priguncrija la'

mhux .nqu miM :nllrejn u mhux itjed min,.. tlcn min. ~.

Minnufih win l-artikolu 49 la' I-An prin~iPIIli ghandu jidhol

31. !dld .... ' L·An priatipl ti. dan J-artikoJu &did klf gej

ffRiproduzzjoni ~ ' kuti /11 ' Bus u munil'

sections, under duly warranted circumstanees the Bank may, subject 10

spc:cific conditions, authorise the reproduction of cu rrency notes or

. ..

"

coms

Immediately after new section 49A adcW 10 the principal Act

3 2.

by section 31 of this Act and immediately pr«eding section 50 of the

principal Act for the mding · PART vu GENERAl." there shall be

substituted ·PART vm GENERAL",

Scetions SO, 5 1 and 52 of the prillCipaJ Act shall be deleted.

33. For section S4 of the principal Act and the marginal note

34. thereto there shall be substituted the following;

~£Ztmprion from

itu:omt lax: and duty on dQCUments and

lransftrt.

"54 . The Bank shall be c:<empl from any liability for the

payment of income tax and duty on documents and transfers under

any law (or the time being in foro:.· .

Section 55 of the principal Act and the Schedulc to the same

35. Act shall be deleted.

A 'SI

1lIc pl'QVlSIOIlS of this Act amending the principal Act in

36. matters concerning the office of the Deputy Governor shall apply only to

persons appointed to that office after the date of the coming into force of

the provisioru of this Act and, in respect of a person appointed before that

date, the provisions of the principal Act on the matters aforesaid shall

continue 10 apply as they were in force prior 10 such ameBdmcnts.

Pusm by the House ofReprc:scntativcs at Sitting No. 323 af me 11th of October, 1994.

LAWRENCE GONZ I

Speaker

RICHARD J. CAUCHl

Clert 10'~ House of/aprtstntotiw!s.

Ippubblib1 ntiej·Dipani .... nl \.I. 1·lnform.az<joni Kutaja - f'W>IiIIW by IN: Df",""TJI 0{ I~ " rh _ KatiIjoo

""SI

Mi'bugll n·!J\.Imporij. ,al.o •••• - h imtd III w G""'''''''''>II PrinM«

"'= 16< - hi« 16<

I1-B8nk &han du jkun ctc ntal mill-lIlas tat-Iaxxa tad-dhul

u dazju lal-boll fuq dokumcnli u trasferimcnti skond !rull liii li hi

IiS-5Chll.".

35. L-1r1ikolu SS ta' I-A ll pri ~ipali u I-Iskeda ta' l-is tes5 All

j·bkoda Ill' I.AII Jrintipt.li. ghandhom jigu mhaMlll.

Id-dispotittjonijiet ta' dan I-An li jcme:ndaw I-All printipali Applihnjoni ta' I-Art.

36. rmatelji li glIandhom x'jaqsmu mal -kariga ta' Dc:putat Gvcmalur

gbandbom japplikaw bin gh.lI· persuni nomin.ti fdik il.brip wan

d-data ta.I-bidu fiS-5Chb tad-dispotizzjonijict ta' dan I-An u, g.IIar-rigwud

ta' pcrsulla nominata qllbel dik id-data. id -dispotittjonijicl ta' I-An

printipalj dwar il-malerji rnsenunija qabel gbandhom jibqghu j'J7Plikaw

kifkicnu fis-schh qabel dawk l-emc:ndi.

Mghoddi mill'Karnra Wl -De putali fis-Seduta Nru. 32J tal· ll g ' Ollubru, 1994.

LAWRENCE GONZI

RIC HARD J. CAUCHI

Skn'~ taJ-KsmnI. t&d-Depul8ll