ACT No. IX of 2005 AN ACT to amend the Central Bank of Malta Act, Cap. 204 and to make consequential amendments.

I assent.

E DWARD F ENECH ADAMI

(L.S.)

President

5th July, 2005

ACT No. IX of 2005

AN ACT to amend the Central Bank of Malta Act, Cap. 204 and to

make consequential amendments.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows>-

The short title of this Act is the Central Bank of Malta

(Amendment) Act, 2005 and it shall be read and construed as one with Short title.

the Central Bank of Malta Act, hereinafter in this Act referred to as

“the principal Act”.

Article 7 of the principal Act shall be amended as follows>

Amendment of

article 7 of the

(a)

subarticle (3) shall be renumbered as subarticle (4)

principal Act.

thereof<

(b) immediately after subarticle (2) thereof, there shall be

inserted the following new subarticle (3)>

“(3) For the purposes of fulfilling its responsibilities

in matters related to the internal and external audit process,

to the system of risk management and internal control and to

the financial reporting process, the Board shall establish and

will be assisted by an Audit Committee, to be chaired by one

of the directors who is neither the Governor nor the Deputy

Governor.”< and

(c) in subarticle (4) as renumbered, for the words “articles

39 to 49A,” there shall be substituted the words “articles 39 to

43,”.

Immediately after article 38F of the principal Act, there shall

be inserted the following new article>

“38G. The Bank may own shares and undertake other

participations in international and national organisations and may

further participate in international monetary agreements to the

extent necessary to carry out its tasks and duties under the law and

to fulfil its international obligations.”.

Immediately after article 49E of the principal Act, there shall

be inserted the following new article>

49F. (1) Whosoever, unless authorised by the

“Sanctions for

Commission

of the European Union, produces, sells, imports

tokens similar

to euro coins. or distributes for sale or for other commercial purposes medals

and tokens, other than exempted medals and tokens, similar

to euro coins>

(a) which have the terms “euro” or “euro cent”

or the euro symbol on their surface< or

(b) having their size inside the reference band

appearing in the Schedule< or

(c) having on their surface any design similar to

any of the national obverse designs or to the common

reverse face of euro coins, or is identical or similar to

the edge design of the two-euro coin,

shall be guilty of an offence and shall, on conviction, be liable

to a fine (multa) not exceeding ten thousand liri, or to

imprisonment for a term not exceeding six months, or to both

such fine and imprisonment.

(2) The following shall be exempted medals or

tokens>

(a) medals and tokens bearing the terms “euro”

or “euro cent” or the euro symbol without an associated

nominal value unless their size is outside the reference

band<

(b) medals and tokens whose size is inside the

reference band and which>

(i) are pierced with a hole of over six

millimetres in their centre, or when their shape is

polygonal but limited to six edges, provided the

condition under subarticle (3)(b) is satisfied< or

(ii) are made of alloys containing gold, silver

and platinum with a millesimal fineness in weight

of at least 375, 500 and 850 respectively< or

(iii) fulfil the conditions laid down in

subarticle (3).

(3) The conditions referred to in subarticle

(2)(b)(iii) are the following>

(a) the combinations of diameter and edge height

of medals and tokens are consistently outside the ranges

defined in each of the cases specified in item 1 of the

Schedule to this Act< and

(b) the combinations of diameter and metal

properties of medals and tokens are consistently outside

the ranges defined in each of the cases specified in item

2 of the Schedule to this Act.

(4) In this article>

“reference band” means the set of combinations

between the values for diameter and values for edge

height included in the reference range for diameter and

the reference range for edge height respectively<

“reference range for diameter” is the one between

19,00 millimetres and 28,00 millimetres< and

“reference range for edge height” is the one included

between 7,00% and 12,00% of each value within the

reference range for diameter.

(5) The provisions of this article shall not apply

to medals and tokens issued before the 6 December 2004.”.

Immediately after article 55 of the principal Act, there shall Addition of

Schedule to the

be inserted the following Schedule>

principal Act.

“SCHEDULE

Ranges referred to in article 49F (3)(a)

1. Defined ranges

Diameter

Edge height

(mm)

(mm)

1. 19,45 – 20,05

1,63 – 2,23

2. 21,95 – 22,55

1,84 – 2,44

3. 22,95 – 23,55

2,03 – 2,63

4. 23,95 – 24,55

2,08 – 2,68

5. 25,45 – 26,05

1,90 – 2,50

Ranges referred to in article 49F(3)(b)

2. Metal properties

(mm)

1. Electrical conductivity between 14,00 and 18,00% IACS

2. Electrical conductivity between>

- 14,00 and 18,00% IACS< or

- 4,50 and 6,50% IACS, unless the medal or token is of

single alloy and its magnetic moment is outside the range

from 1,0 to 7,0 µVs.cm

3. Electrical conductivity between>

- 15,00 and 18,00% IACS< or

- 13,00 and 15,00% IACS, unless the medal or token

is of single alloy and its magnetic moment is outside the

range from 1,0 to 7,0 µVs.cm

4. Electrical conductivity between 13,00 and 15,00% IACS,

unless the medal or token is of single alloy and its

magnetic moment is outside the range from 1,0 to 7,0

µVs.cm

”.

The Internal Audit and Financial Investigations Act, hereinafter Consequential

amendments to the

in this article referred to as the “principal Act”, shall be amended as Internal Audit and

Financial

follows>-

Investigations Act,

(1) in article 2 of the principal Act> –

(a) immediately before the definition “auditee” there

shall be added the following new definition>

“ “Audit Committee” means the Audit Committee

established under article 7(3) of the Central Bank of Cap. 204.

Malta Act<”< and

(b) immediately after the definition “Board” there shall

be added the following new definition>

“ “Central Bank of Malta” or “the Bank” means

the Central Bank of Malta established by article 3 of the

Central Bank of Malta Act<”<

(2) immediately after subarticle (2) of article 14 thereof,

there shall be added the following new subarticle>

“(3) Notwithstanding subarticles (1) and (2) hereof,

where the auditee is the Central Bank of Malta, any report of

a financial investigation carried out at the Bank shall be

presented to the Chairman of the Audit Committee of the Bank

who shall, within one month of the receipt of such report,

give instructions to the Governor of the Bank as may be

necessary to remedy any shortcomings, and shall inform the

Director accordingly.”<

(3) in article 18 thereof, for the words “of the auditee.” there

shall be substituted the words “of the auditee>” and immediately

thereafter there shall be added the following proviso>

“Provided that in the case of the Central Bank of Malta,

where the Director is of the opinion that the irregularity is of

an administrative nature, he shall inform the Chairman of the

Audit Committee of the Bank.”< and

(4) in subarticle (2) of article 22 thereof, immediately after

the words “Permanent Secretary” there shall be added the words

“or, as the case may be, the Chairman of the Audit Committee of

the Central Bank of Malta,”.

Article 9B of the Income Tax Act shall be amended as

follows>

(a) in subarticle (1) thereof, in the definition “qualifying

asset”, immediately after the words “the Exchange Control Act”

there shall be added the words “or article 11 of the External

Transactions Act”<

(b) in paragraph (b) of subarticle (2) thereof>

(i) immediately after the words “or an accumulation

thereof,” there shall be inserted the words “at any time before

the date on which that asset is registered as a qualifying asset,”<

(ii) for the words “the 1st September, 2001” there shall

be substituted the words “the 31st March, 2005”< and

(iii) for the words “the 1st January, 2001” there shall

be substituted the words “the 1st January, 2005”<

(ç)

in paragraph (c) of subarticle (2) thereof>

(i) for the words “the 1st September, 2001” there shall

be substituted the words “the 31st March, 2005”<

(ii) immediately after the words “in consideration of

such transfer or transmission” there shall be added the words

“at any time before the date on which that asset is registered

as a qualifying asset”< and

(d) in subarticle (3) thereof, for the words “the 1st

September, 2001” there shall be substituted the words “the 31st

March, 2005”.

Passed by the House of Representatives at Sitting No. 285 of 28th June, 2005.

A NTON T ABONE

Speaker

R ICHARD J. C AUCHI

Clerk to the House of Representatives