ACT No. I of 2007 AN ACT to amend the Central Bank of Malta Act, Cap. 204 and the External Transactions Act, Cap. 233.

I assent.

(L.S.)

E DWARD F ENECH A DAMI

President

2nd March, 2007

ACT No. I of 2007

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

External Transactions Act, Cap. 233.

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, 2007.

PART I

AMENDMENT OF THE CENTRAL BANK OF MALTA ACT,

(1) This Part amends and shall be read and construed as one

with the Central Bank of Malta Act, hereinafter referred to as “the

Malta Act, Cap 204.

principal Act”.

(2) This Part shall come into force on such date as the

Minister responsible for finance may by notice in the Gazette establish

and different dates may be so established for different provisions and

different purposes thereof.

(1) The headings of the Parts of the principal Act, that is

Part I Preliminary, Part II Establishment and Conduct of Affairs of Bank,

Part IIA Monetary Policy, Part III Financial Provisions, Part IIIA

Collection of Information, Part IV Relations with Government, Part V

Relations with Banks and Financial Institutions, Part VI Relations with

the Competent Authority, Part VIA Relations with International and

other Organisations, Part VII Currency and Part VIII General, shall be

deleted and the new Parts shall be styled as follows

(a) “Part I Preliminary”;

(b) “Part II Establishment and Conduct of Affairs of Bank”;

(c) “Part III Financial Provisions”;

(d) “Part IV Collection of Information”;

(e) “Part V Relations with Government”;

(f) “Part VI Relations with Credit and Financial Institutions”;

(g) “Part VII Payment Systems”;

(h) “Part VIII Relations with the Competent Authority”;

(i) “Part IX Relations with International and Other

Organisations”;

(j) “Part X Currency”;

(k) “Part XI General”; and

(l) “Part XII Transitional Provisions for the Maltese Lira”.

(2) Articles 6, 16, 17A, 17B, 17C, 17D, 19, 20, 21, 29, 30, 32,

35, 38D, 39, 40, 41, 50, 51, 52 and 55 of the principal Act shall be

deleted.

(3) Articles 5, 13, 13A, 14, 15, 17, 18, 22, 23, 24, 24A, 24B,

31, 33, 34, 36, 36A, 37, 38, 38A, 38B, 38C, 38E, 38F, 38G, 49A, 49B,

49C, 49D, 49E, 49F, 52A, 52B, 53 and 54 of the principal Act shall be

renumbered as articles 6, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 29,

30, 31, 34, 35, 32, 33, 36, 37, 40, 41, 39, 50, 51, 52, 53, 54, 55, 56, 57,

58 and 59 respectively.

(4) The new headings of the Parts in subarticle (1) hereof

shall appear respectively as follows

(a) the heading in paragraph (a) before article 1;

(b) the heading in paragraph (b) before article 3;

(c) the heading in paragraph (c) before article 19, as

renumbered;

(d) the heading in paragraph (d) before article 23, as

renumbered;

(e) the heading in paragraph (e) before article 25;

(f) the heading in paragraph (f) before article 30, as

renumbered;

(g) the heading in paragraph (g) before article 34, as

renumbered;

(h) the heading in paragraph (h) before article 36, as

renumbered;

(i) the heading in paragraph (i) before article 39, as

renumbered;

(j)

the heading in paragraph (j) before article 42;

(k) the heading in paragraph (k) before article 56, as

renumbered; and

(l)

the heading in paragraph (l) before new article 62.

For the Arrangement of Act, there shall be substituted the

following

“ARRANGEMENT OF ACT

Articles

Preliminary

1-2

Establishment and Conduct of Affairs of Bank

3-18

Financial Provisions

19-22

Collection of Information

23-24

Relations with Government

25-29

Relations with Credit and Financial Institutions 30-33

Part VII.

Payment Systems

34-35

Part VIII.

Relations with the Competent Authority

36-38

Relations with International and Other Organisations 39-41

Currency

42-55

General

56-61

Part XII.

Transitional Provisions for the Maltese Lira

62-63

Schedule

For the long title to the principal Act, there shall be substituted Substitutes

to principal Act.

the following

“An Act to make provision for the establishment of a Central

Bank of Malta and the determination of its functions and powers

and to provide for matters ancillary or incidental thereto.”.

Article 2 of the principal Act shall be amended as follows

Amendment of

article 2 of the

principal Act.

(a) in the definition “ “bank” or “credit institution” ”, the

words “means any person carrying on the business of banking”

shall be substituted with the words “has the same meaning assigned

to it by article 2 of the Banking Act”;

(b) in the definition “business of banking”, the word “under”

shall be substituted with the words “by article 2 of”;

(c) immediately after the definition “business of banking”

there shall be added the following new definition

“ “the Community” means the European Community

referred to in article 2 of the European Union Act;”;

(d) the definition “Competent Authority” shall be substituted

with the following

“ “competent authority” means any such authority or

authorities, as the case may be, nominated to regulate the business

of credit institutions, financial institutions or financial services

institutions under any law listed in the Schedule to this Act;”;

(e) immediately after the definition “director” there shall

be added the following new definition

“ “European Central Bank” means the bank established

in accordance with Article 8 of the Treaty;”;

(f)

the definition “external assets” shall be deleted;

(g) in the definition “financial institution”, the words “means

an institution licensed under” shall be substituted with the words

“has the same meaning assigned to it by article 2 of ”;

(h) the definition “Gazette” shall be deleted;

(i)

the definition “Government” shall be deleted;

(j) in the definition “ “Governor” and “Deputy Governor”

”, the words “, and “Governor” includes a person for the time being

acting as Governor” shall be deleted;

(k) immediately after the definition “Minister” there shall

be added the following new definitions

“ “reserve assets” shall include

(a) foreign exchange assets comprising currency,

deposits and securities in any currency other than the

euro, and

(b) monetary gold, Special Drawing Rights

(SDRs) and reserve position in the International

Monetary Fund;“Statute” means the Protocol on the

Statute of the European System of Central Banks and of

the European Central Bank annexed to the Treaty;”; and

(l) the definition “the Treaty” shall be substituted with the

following

“ “the Treaty” means the Treaty establishing the European

Community done at Rome on 25 March 1957 and as subsequently

amended.”.

For subarticle (1) of article 3 of the principal Act, there shall

be substituted the following

“(1) There shall be a Bank to be called the Central Bank of

Malta. The Bank shall form an integral part of the European System

of Central Banks as established under the Treaty and shall

participate in carrying out the tasks and complying with the

objectives conferred upon it by the Treaty and the Statute and shall

assume all rights and obligations consequential to such a status.”.

Article 4 of the principal Act shall be amended as follows

(a) in the marginal note thereto, for the words “Principal

objective” there shall be substituted the words “Objectives”;

(b) subarticles (2) and (3) thereof shall be deleted; and

(c) subarticle (1) thereof shall be renumbered as the whole

provision and shall be substituted with the following

“In accordance with the Treaty and the Statute, the

primary objective of the Bank shall be to maintain price

stability. Without prejudice to its primary objective, the Bank

shall support the general economic policies in the Community

with a view to contributing to the achievement of the

objectives of the Community as laid down in Article 2 of the

Treaty and shall act in accordance with the principles set out

in Article 4 of the Treaty.”.

Immediately after article 4 of the principal Act, there shall be Addition of new

article 5 to the

added the following new article 5

principal Act.

5. (1) In accordance with the Treaty and the Statute,

the tasks of the Bank shall include the following –

(a)

to implement monetary policy;

(b) to hold and manage reserve assets;

(c)

to ensure the stability of the financial system;

(d)

to promote a sound and efficient payment

system;

(e) to provide for the circulation of euro

banknotes;

(f) to provide for the circulation of euro coins

issued for and on behalf of the Government;

(g) to advise the Government generally on

financial and economic matters;

(h) to compile and publish statistics as may be

necessary to carry out its tasks.

(2) In accordance with the Treaty and the Statute,

neither the Bank nor any member of the Board or any official

of the Bank, when exercising any function, duty or power

under this Act, shall seek or take instructions from the

Government or any other body.

(3) The Bank may issue, amend or revoke directives

as may be required for carrying into effect any of the

provisions of this Act.”.

Article 7 of the principal Act shall be amended as follows

(a) in subarticle (1) thereof, for the words from “the Bank,”

to “17D.” there shall be substituted the words “the Bank, except in

relation to the functions imposed, and the exercise of powers

conferred, on the Bank by or under the Treaty or the Statute.”;

(b) for subarticle (2) thereof there shall be substituted the

following

“(2) The members of the Board shall be the Governor,

the Deputy Governor and the three other directors appointed

under article 9.”; and

(c)

subarticles (3) and (4) thereof shall be deleted.

Article 8 of the principal Act shall be amended as follows

(a) the present subarticle (2) shall be renumbered as

paragraph (b) of the subarticle, and immediately before it there

shall be inserted the following new paragraph (a)

“(a) The Governor has the sole responsibility for the

performance of the functions imposed, and the exercise of

powers conferred, on the Bank by or under the Treaty and the

Statute.”;

and for the words “Without prejudice to the provisions of article

17,” there shall be substituted the words “Without prejudice to

paragraph (a) of this subarticle,”; and immediately after the word

“decisions” there shall be inserted the words “in this respect”;

(b) subarticle (4) thereof shall be deleted;

(c) subarticle (5) thereof shall be renumbered as subarticle

(4); and

(d) immediately after subarticle (4), as renumbered, there

shall be added the following new subarticles (5) and (6)

“(5) The Governor and the Deputy Governor may be

relieved of their office only if they no longer fulfil the

conditions required for the performance of their duties or if

they have been guilty of serious misconduct.

(6) The Governor may be requested by the House of

Representatives to report on the conduct of the Bank before a

committee of the House of Representatives appointed for this

purpose and to provide such committee with any information

deemed necessary

Provided that the Governor may not be so requested more

often than once every six months.”.

Article 9 of the principal Act shall be substituted with the Amendment of

article 9 of the

following:–

principal Act.

“9. (1) For the purposes of this article, the term director

shall exclude the Governor and the Deputy Governor.

(2) The directors of the Bank, shall –

(a)

be appointed by the Prime Minister;

(b) be persons of recognised standing and professional

experience in economic, financial or banking affairs;

(c) hold office for a period of five years and on such

terms and conditions as may be set out in their respective

letters of appointment, and shall be eligible for re-

appointment;

(d) be entitled to such honorarium as the Prime

Minister may determine.

(3) No person shall be appointed or shall remain a

director who –

(a)

is a member of the House of Representatives;

(b) is a director or salaried official of an institution

licensed to provide financial or banking services or holds more

than one per centum of the ordinary paid up share capital of

such institution;

(c)

is an officer in the public service;

(d) under the law of any country has been adjudged

bankrupt or made a composition with his creditors or is legally

incapacitated or has been convicted of a crime affecting public

trust or of theft or of fraud or of knowingly receiving property

obtained by theft or fraud;

(e) holds any other position, or is otherwise in a

position, which is in conflict with his duties as a director under

this Act.

(4) A director may be relieved of his office on the

grounds of inability to perform the functions of his office, or of

misbehaviour; and for the purposes of this subarticle, repeated

unjustified non-attendance of Board meetings may deem to amount

to misbehaviour.”.

Subarticles (1) and (2) of article 11 of the principal Act shall

be deleted and subarticles (3) and (4) thereof shall be renumbered as

subarticles (1) and (2) respectively.

For subarticle (4) of article 12 of the principal Act, there

shall be substituted the following

“(4) Three members of the Board, one of whom shall be

either the Governor or the Deputy Governor, shall form a quorum

at any meeting.”.

Immediately after article 12 of the principal Act, there shall

be added the following new article 13

13. The Board shall establish an Audit Committee to

be chaired by one of the directors who is neither the Governor

nor the Deputy Governor for the purposes of assisting it in

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.”.

Article 17, as renumbered, of the principal Act shall be

amended as follows

(a) for subarticle (1) thereof there shall be substituted the

following

“(1) In accordance with the Treaty and the Statute, in

order to achieve its objectives and to carry out its tasks, the

operations of the Bank shall include the following

“(a) to open accounts and accept and place

deposits as provided in this Act, and, in special cases,

with the prior approval of the Board, to open accounts

for and accept deposits from other persons;

(b) to maintain accounts with central banks or

other credit institutions and agents, accept from, and

place deposits with, any such credit institution or agent,

and act as correspondent, banker or agent for any central

bank or other credit institution or other monetary

authority and for any international financial institution

established under international treaties;

(c) to subscribe to, purchase, sell, discount or re-

discount equity, debt or other financial instruments as

may be approved by the Board, provided that any equity

interests in an undertaking or immovable property as

the Bank may in any way acquire in the course of the

satisfaction of debts due to it shall be disposed of at the

earliest suitable moment;

(d) to issue, purchase, sell, discount or re-discount

financial instruments bearing the Bank’s name in such

form and for such terms and maturities as may be

approved by the Board;

(e) to grant to any credit or financial institution

in Malta loans and advances against adequate security;

(f) to enter into repurchase and reverse repurchase

agreements; and

(g) when it deems such action necessary to

safeguard financial stability or in other exceptional

circumstances, to grant a loan or advance to any credit

institution incorporated in Malta against such forms of

security as the Board may consider appropriate.”;

(b) in subarticle (2) thereof for the words “external reserves”,

wherever they appear, there shall be substituted the words “reserve

assets”, and immediately after the words “the Bank may” there

shall be inserted the words “, in accordance with the guidelines

and instructions of the European Central Bank,”;

(c) in subarticle (3) thereof for the words “government

securities or other first class securities” there shall be substituted

the words “financial instruments”;

(d) subarticles (4), (5) and (6) thereof shall be renumbered

as subarticles (5), (6) and (7) respectively; and

(e) immediately after subarticle (3) thereof there shall be

inserted the following new subarticle (4)

“(4) The Bank may purchase, acquire or lease

immovable property as the Bank may consider necessary or

expedient for the provision, or future provision, of premises

for the conduct of its business or for other similar requirements

incidental to the performance of its functions under this Act.”.

Article 18, as renumbered, of the principal Act shall be

amended as follows

(a) in the marginal note thereto, the words “Advisory

Council” shall be deleted; and

(b) for subarticles (1) and (2) there shall be substituted the

following subarticles

“(1) The sole authority and responsibility within the

Bank to take decisions and to perform any function or duty or

to exercise any power relating to monetary policy shall vest

in the Governor who, when performing this function, shall

act in accordance with the powers and duties conferred by

the Treaty and the Statute.

(2) The Governor may establish a Monetary Policy

Advisory Committee to advise him on matters relating to

monetary policy. The Committee shall be constituted of such

number of persons as the Governor may determine and may

also include suitably qualified persons from outside the Bank

being persons who the Governor is satisfied have knowledge

or experience which is likely to be relevant to the Committee’s

functions.

(3) Whenever the Governor is unable, by reason of

absence, ill-health or any other cause to discharge the

functions, duties and powers referred to in this article, or where

the office of the Governor is vacant, the authority and

responsibility vested in the Governor under sub-article (1)

shall, during such inability or vacancy, vest in the Deputy

Governor.”.

Article 19, as renumbered, of the principal Act shall be Amendment of

article 19, as

amended as follows

renumbered, of the

principal Act.

(a) in subaricle (1) thereof, for the words “five million liri”

there shall be substituted the words “twenty million euro”;

(b) subarticle (2) thereof, shall be substituted with the

following

“(2) The Bank shall maintain a General Reserve Fund

which shall be of not less than twenty million euro and which

shall be available for any purpose as may be determined by

the Board. Whenever the amounts have been drawn from the

General Reserve Fund, these shall be replaced, as may be

decided by the Board, from the profits of the Bank arising in

subsequent years.”; and

(c)

subarticle (3) thereof shall be deleted.

In article 20, as renumbered, of the principal Act, immediately Amendment of

article 20, as

before the words “The accounts of”, there shall be inserted the words renumbered, of the

“In accordance with Article 27 of the Statute,”, the word “annually” principal Act.

shall be deleted, and for the words”“with the approval of the Minister”

there shall be substituted the words “as recommended by the European

Central Bank and approved by the Council of the European Union”.

Article 21, as renumbered, of the principal Act shall be Amendment of

article 21, as

amended as follows

renumbered, of the

principal Act.

(a) subarticles (1), (2) and (3) thereof shall be renumbered

as subarticles (2), (3) and (4) respectively; and

(b) immediately before subarticle (2), as renumbered, there

shall be inserted the following new subarticle (1)

“(1) The financial year of the Bank shall begin on the

first day of January and end on the thirty-first day of

December.”; and

(c) immediately after subarticle (4), as renumbered, there

shall be inserted a new subarticle (5)

“(5) The Bank shall observe the standard rules of

accounting and reporting as may be established by the

Governing Council of the European Central Bank under

Article 26(4) of the Statute.”.

Article 22, as renumbered, of the principal Act shall be

amended as follows

(a) in subarticle (1) thereof, the word “current” shall be

(b) subarticles (2) and (3) thereof shall be deleted; and

(c)

subarticle (4) thereof shall be renumbered as subarticle

Article 23, as renumbered, of the principal Act shall be

amended as follows

(a) in subarticle (1) thereof, for the words “article 38A(2)”

there shall be substituted the words “article 36(2)”, and immediately

after the words “under this Act” there shall be inserted the words

“or to implement instructions or guidelines issued in terms of the

Treaty and the Statute”;

(b) subarticle (3) thereof shall be amended as follows

(i) paragraph (g) thereof shall be substituted with the

following

“(g) a person who holds reserve assets and

liabilities or carries out cross-border transactions which

the Bank determines relevant to compile balance of

payments statistics or to establish the balance sheet of

the stock of external financial assets and liabilities for

Malta, otherwise referred to as the international

investment position;”;

(ii) immediately after paragraph (g) there shall be

inserted the following paragraph (h)

“(h) a recognised investment exchange under the

Financial Markets Act; or”; and

(iii) paragraph (h) thereof shall be renumbered as

paragraph (i); and

(c) in subarticle (4) thereof, for the words “Part VI” there

shall be substituted the words “Part VIII”.

Article 24, as renumbered, of the principal Act shall be Amendment of

article 24, as

amended as follows

renumbered, of the

principal Act.

(a) in subarticle (1) thereof, for the words “The Bank may”

there shall be substituted the words “In accordance with the Treaty

and the Statute and the guidelines and instructions of the European

Central Bank, the Bank may”;

(b) in subarticle (3) thereof, for the words “article 38A(1)”

there shall be substituted the words “article 36(1)”; and

(c) immediately after subarticle (3) there shall be added the

following new subarticle (4)

“(4) Where a reporting agent contravenes or fails to

comply with a reporting requirement under the provisions of

article 23 or fails to comply with a requirement contained in

any directive issued under article 24(1), the Bank shall impose

sanctions as set out in Article 7 of Council Regulation (EC)

No. 2533/98 of 23 November, 1998 concerning the collection

of statistical information by the European Central Bank.”.

In subarticle (1) of article 26 of the principal Act, for the Amendment of

article 26 of the

word “shall” there shall be substituted the word”“may”.

principal Act.

Article 27 of the principal Act shall be amended as follows: Amendment of

article 27 of the

principal Act.

(a)

subarticle (1) shall be substituted with the following

“(1) The Bank shall not grant overdrafts or any other

type of credit facility to Community institutions or bodies or

the government or to any public authority or bodies governed

by public law, or to any public undertaking or government-

owned corporation of any Member State, nor shall the Bank

directly purchase their debt instruments.”; and

(b) in subarticle (2) for the words “The Government-

controlled credit institution” there shall be substituted the words

“Government-controlled credit institutions”.

Article 28 of the principal Act shall be substituted with the Amendment of

article 28 of the

following

principal Act.

In accordance with the provisions of this Act and

in conformity with its duties and functions, the Bank may act

Government.

generally as agent for the Government.”.

27. In article 29 of the principal Act, for the words “of the Bank,”

there shall be substituted the words “of the Bank:” and immediately

after there shall be inserted the following proviso

“Provided that

(a) this does not result in interference with the

independence of the members of the Bank’s decision making

bodies;

(b) the special status of the Governor in his capacity

as member of the Governing Council and General Council of

the European Central Bank is fully respected; and

confidentiality requirements resulting from the Statute are

observed.”.

28. Article 32, as renumbered, of the principal Act shall be

amended as follows

(a)

subarticles (2), (3) and (4) thereof shall be deleted; and

(b) subarticle (1) thereof shall be renumbered as the whole

provision, and shall be substituted with the following

“Deposits of

In accordance with the Treaty and the Statute, credit

institutions may be required to hold minimum reserves with

the Bank, and to report thereon.”.

29. Article 34, as renumbered, of the principal Act shall be

amended as follows

(a) in this article, in the Maltese text, for the words “[las”

and “[lasijiet”, wherever they appear, there shall be substituted

the words “pagament” and “pagamenti” respectively;

(b) in subarticle (1) therefore, immediately after the words

“The Bank shall” there shall be inserted the words “, in accordance

with the Treaty and the Statute,”;

(c) in subarticle (3) thereof, for the words “twenty thousand

liri” there shall be substituted the words “forty-five thousand euro”;

(d) at the end of subarticle (5) thereof there shall be inserted

the following proviso

“Provided that the Bank’s powers to issue directives

under this subarticle shall be exercised in accordance with

the Treaty, Article 22 of the Statute and any regulations issued

under Article 22 of the Statute.”;

(e) in subarticle (6) thereof, immediately before the words

“Any payment order” there shall be inserted the words “To the

extent specified by the Bank in directives as aforesaid,”; and

(f) in subarticle (7) thereof, immediately after the word

“settlement,” there shall be inserted the words “securities clearing,”,

and in the Maltese text, for the words “[las ta’ pagamenti” there

shall be substituted the words “konklu]joni ta’ pagamenti”.

30. Article 35, as renumbered, of the principal Act shall be Amendment of

article 35, as

amended as follows

renumbered, of the

principal Act.

(a) in paragraph (a) thereof, for the words “article 36(2)”

there shall be substituted the words “article 34(2)”, and for the

words “article 36(5)(a)” there shall be substituted the words “article

34(5)(a)”;

(b) in paragraph (b) thereof, for the words “article 36(5)(b)”

there shall be substituted the words “article 34(5)(b)”; and

(c) in paragraph (c) thereof, for the words “article 52A(1)”

there shall be substituted the words “article 56(1)”.

31. In article 36, as renumbered, of the principal Act, including Amendment of

article 36, as

the marginal note thereto, in the English text, for the words “Competent renumbered, of the

Authority”, wherever they appear, there shall be substituted the words principal Act.

“competent authority”.

32. Article 37, as renumbered, of the principal Act shall be Amendment of

article 37, as

amended as follows

renumbered, of the

principal Act.

(a) in this article, including in the marginal note thereto, in

the English text only, for the words “Competent Authority”,

wherever they appear, there shall be substituted the words

“competent authority”; and

(b) in subarticle (2) thereof, for the words “article 24A”

there shall be substituted the words “article 23”.

The English text of article 38 as renumbered, of the principal

Act shall be amended as follows

(a) in the marginal note thereto, for the words “Information

by banks” there shall be substituted the word “Confidentiality”;

and

(b) in this article, for the words “Competent Authority” there

shall be substituted the words “competent authority”.

In article 39, as renumbered, of the principal Act, immediately

before the words “The Bank may own shares” there shall be inserted

the words “In accordance with the Treaty and the Statute,”.

In article 41, as renumbered, of the principal Act, immediately

after the words “international obligations”, wherever they appear, there

shall be inserted the words “including in situations of instability in the

financial system”.

Article 42 of the principal Act shall be amended as follows

(a) for the marginal note thereto, there shall be substituted

the words “Issue of euro banknotes”;

(b) subarticles (2), (3), (4), (5), (6) and (7) thereof shall be

deleted; and

(c) subarticle (1) thereof shall be renumbered as the whole

provision, and shall be substituted with the following

“The Bank shall issue euro banknotes in accordance with

Article 106 of the Treaty and Article 16 of the Statute.”.

Article 43 of the principal Act shall be amended as follows

(a) for the marginal note thereto, there shall be substituted

the words “Issue of euro coins”;

(b) subarticle (1) thereof shall be substituted with the

following

“The Bank shall issue euro coins in Malta. In doing so,

the Bank shall act as agent for the Government.”;

(c) subarticle (2) thereof shall be substituted with the

following

“The volume of euro coins to be issued in Malta shall be

subject to prior approval by the European Central Bank in

terms of Article 106 of the Treaty.”; and

(d) subarticles (3), (4), (5), (6), (7), (8) and (9) thereof shall

be deleted.

Article 44 of the principal Act shall be substituted with the Substitution of

article 44 of the

following

principal Act.

L-artikolu 48 ta’ l-Att prinçipali g[andu ji;i emendat kif ;ej>

(a) fin-nota mar;inali tieg[u, minflok il-kliem “biljetti tal-flus”

g[andhom jid[lu l-kliem “karti tal-flus euro”< u

(b) f’dan l-artikolu, minflok il-kliem “[amsin lira” g[andhom

jid[lu l-kliem “mija u [mistax-il euro”.

L-artikolu 51, kif enumerat mill-;did, ta’ l-Att prinçipali Emenda ta’ l-

artikolu 51, kif

g[andu ji;i emendat kif ;ej>

enumerat mill-;did,

ta’ l-Att prin/ipali.

(a) fin-nota mar;inali tieg[u, minflok il-kliem “biljetti ta’

flus u muniti” g[andhom jid[lu l-kliem “karti tal-flus euro”< u

(b) f’dan l-artikolu, minflok il-kliem “ta[t kondizzjonijiet

speçifiçi, jawtorizza r-riproduzzjoni ta’ karti ta’ flus jew muniti”

g[andhom jid[lu l-kliem “skond id-disposizzjonijiet tad-Deçi]joni

BÇE#2003#4 ta’ l-20 ta’ Marzu 2003 u fejn jara xieraq, jag[ti

konferma li r-riproduzzjoni ta’ karta tal-flus euro hija legali.”.

Fl-artikolu 52, kif enumerat mill-;did, ta’ l-Att prinçipali Emenda ta’ l-

artikolu 52, kif

minflok il-kliem “il-lira Maltija u, jew l-ewro” g[andha tid[ol il-kelma enumerat mill-;did,

ta’ l-Att prin/ipali.

“l-euro”.

Fl-artikolu 53, kif enumerat mill-;did, ta’ l-Att prinçipali Emenda ta’ l-

artikolu 53, kif

minflok il-kliem “l-artikolu 49Ç” g[andhom jid[lu l-kliem “l-artikolu enumerat mill-;did,

52”, u minflok il-kliem “il-lira Maltija u, jew l-ewro” g[andha tid[ol il- ta’ l-Att prin/ipali.

kelma “l-euro”.

L-artikolu 54, kif enumerat mill-;did, ta’ l-Att prinçipali Emenda ta’ l-

artikolu 54, kif

g[andu ji;i emendat kif ;ej>

enumerat mill-;did,

ta’ l-Att prin/ipali.

(a)

is-subartikolu (2) tieg[u g[andu jit[assar< u

(b) is-subartikolu (1) tieg[u g[andu ji;i enumerat mill-;did

b[ala dispo]izzjoni s[i[a u minflok g[andu jid[ol dan li ;ej>

“:bir ta’

For the purposes of the following provisions of this

Part, “currency note” or “coin” mean euro banknotes or euro

note or coin.

coins and any other note or coin, by whatever name called,

which is legal tender in the country outside Malta in which it

was issued.”.

39. Article 48 of the principal Act shall be amended as follows: Amendment of

article 48 of the

principal Act.

(a) in the marginal note thereto, for the words “currency

notes” there shall be substituted the words “euro banknotes”; and

(b) in this article, for the words “fifty liri” there shall be

substituted the words “one hundred and fifteen euro”.

40. Article 51, as renumbered, of the principal Act shall be Amendment of

article 51, as

amended as follows

renumbered, of the

principal Act.

(a) in the marginal note thereto, for the words “currency

notes and coins” there shall be substituted the words “euro

banknotes”; and

(b) in this article, for the words “subject to specific

conditions, authorise the reproduction of currency notes or coins”

there shall be substituted the words “acting in accordance with the

provisions of Decision ECB/2003/4 of 20 March 2003 and where

it deems appropriate, provide confirmation that a reproduction of

a euro banknote is lawful.”.

41. In article 52, as renumbered, of the principal Act, the words Amendment of

article 52, as

“the Maltese lira and, or” shall be deleted.

renumbered, of the

principal Act.

42. In article 53, as renumbered, of the principal Act, for the

words “article 49C” there shall be substituted the words “article 52”,

and the words”“the Maltese lira and, or” shall be deleted.

43. Article 54, as renumbered, of the principal Act shall be

amended as follows

(a)

subarticle (2) thereof shall be deleted; and

(b) subarticle (1) thereof shall be renumbered as the whole

provision, and shall be substituted with the following

There shall be a unit within the Bank which shall

“Compilation

have

sole responsibility in Malta to analyse suspected

information

on counterfeit counterfeit euro banknotes and euro coins in accordance with

banknotes and Council Regulation (EC) No 1338/2001 of 28 June 2001

euro coins.

laying down measures necessary for the protection of the euro

against counterfeiting, as may be subsequently amended, and

to carry out any tasks or duties consequential thereto.”.

44. Article 55, as renumbered, of the principal Act shall be

amended as follows

(a)

subarticle (1) thereof shall be amended as follows

(i) in paragraph (b) thereof, for the words “in the

Schedule” there shall be substituted the words “in Annex II

of Council Regulation (EC) No 2182/2004 concerning medals

and tokens similar to euro coins”; and

(ii) for the words “ten thousand liri” there shall be

substituted the words “twenty three thousand euro”;

(b) in subarticle (3)(a) thereof, for the words “item 1 of

Schedule One” there shall be substituted the words “item 2 of Annex

II of Council Regulation (EC) No 2182/2004 concerning medals

and tokens similar to euro coins”; and in subarticle (3)(b) thereof,

for the words “item 2 of Schedule One” there shall be substituted

the words “item 3 of Annex II of Council Regulation (EC) No

2182/2004 concerning medals and tokens similar to euro coins”;

and

(c)

subarticle (4) thereof shall be amended as follows

(i) in the definition “reference range for diameter”, for

the words “19,00 millimetres and 28,00 millimetres” there

shall be substituted the words “19.00 millimetres and 28.00

millimetres”; and

(ii) in the definition “reference range for edge height”,

for the words “7,00% and 12,00%” there shall be substituted

the words “7.00% and 12.00%”.

45. Article 56, as renumbered, of the principal Act, shall be Amendment of

article 56, as

amended as follows

renumbered, of the

principal Act.

(a) in the proviso to subarticle (1) thereof, for the words

“ten thousand Maltese liri” there shall be substituted the words

“twenty three thousand euro”; and immediately after the proviso

there shall be inserted a second proviso

“Provided further that the Minister may not issue

regulations providing for penalties and, or sanctions where

regulations providing for similar penalties and, or sanctions

have been adopted by the European Central Bank under the

Treaty or the Statute.”; and

(b) subarticle (2) thereof shall be amended as follows

(i) immediately after the words “administrative

penalties” there shall be inserted the word “only”;

(ii) for paragraphs (a) to (f) thereof there shall be

substituted the following

“(a) where a participant in a payment system

contravenes or fails to comply with a requirement

contained in any directive issued under article 34;

(b) where any person contravenes or fails to

comply with the provisions of article 50 to withdraw

from circulation currency notes and coins and to deliver

them to the Bank;

(c) upon any body corporate where the offences

referred to in articles 45 to 49 are committed for their

benefit by any person, acting either individually or as

part of an organ of the body corporate, who has a senior

position within the body corporate, on the basis of –

(i) a power of representation of the body

corporate, or

(ii) an authority to take decisions on behalf

of the body corporate, or

(iii) an authority to exercise control within

the legal person,

or where such person aids or acts as an accessory in the

commission of such offences or the attempted

commission of such offences; and

(d) upon any body corporate where the lack of

supervision or control by the person referred to in

paragraph (c) has rendered possible the commission of

an offence referred to in the same paragraph for the

benefit of that body corporate by a person under its

authority.”; and

(c)

subarticle (3) thereof shall be deleted.

46. Article 57, as renumbered, of the principal Act, shall be

amended as follows

(a) in subarticle (1) thereof, for the words “article 52A” there

shall be substituted the words “article 56”;

(b) in subarticle (2) thereof, for the words “article 52A(2)(a)”

there shall be substituted the words “article 56(2)(a)”; and

(c) in paragraph (a) of subarticle (3) thereof, for the

words”“article 36A” there shall be substituted the words “article

47. Immediately after article 59, as renumbered, of the principal

Act, there shall be added the following new articles 60 and 61

The Minister may, by regulations, amend the

Schedules to this Act.

(1) Reference in any law to the Bank’s discount

and, or official interest rates shall be a reference to the key

interest rates of the European Central Bank.

(2) For the purpose of this article, “key interest

rates” shall mean the interest rates which reflect the

formulation of monetary policy by the European Central

Bank.”.

48. Immediately after new article 61 of the principal Act, there Addition

Part XII to the

shall be added the following new Part XII

principal Act.

“PART XII

TRANSITIONAL PROVISIONS FOR THE MALTESE

LIRA

(1) Upon due notice being given by the Minister

in the Gazette, the Bank shall have the power to call in any

Maltese lira notes on payment of the equivalent of the face

value thereof in euro, and any such notes shall, until ten years

following the expiration of the period mentioned in the notice,

but subject to the provisions of sub-article (2), be redeemable

by the Bank on demand for euro currency at the conversion

rate of the Maltese lira for the euro established in terms of the

Treaty and without charge.

(2) No person shall be entitled to redeem from

the Bank the value of any lost, stolen, mutilated or imperfect

Maltese lira note. The circumstances in which, and the

conditions and limitations subject to which the value of lost,

stolen, mutilated or imperfect Maltese lira notes may be

redeemed as of grace shall be within the absolute discretion

of the Bank.

(3) After the expiration of one year following the

end of the period mentioned in the notice calling in any notes

under sub-article (1), any Maltese lira notes so called in but

not presented for redemption shall cease to be included in the

currency liabilities of the Bank and the value of such notes,

after deducting therefrom the value of any notes which are

subsequently redeemed, shall be apportioned to the profits of

the Bank over the remaining period until the expiration of the

ten-year period specified under the provisions of sub-article

(1).

(4) Until the expiration of the ten-year period

specified under sub-article (1), the provisions of articles 45

to 50 and of article 54 shall also apply to Maltese lira notes.

(5) For the purpose of this article, “Maltese lira

notes” means the currency notes which were legal tender in

Malta prior to the introduction of the euro.

(1) Upon due notice being given by the Minister

in the Gazette, the Bank shall have the power to call in any

Maltese lira coins on payment of the equivalent of the face

value thereof in euro and any such coins shall, until two years

following the expiration of the period mentioned in the notice,

but subject to the provisions of sub-article (4) and provided

that the coins have not been tampered with, be redeemable

by the Bank on demand for euro currency at the conversion

rate of the Maltese lira for the euro established in terms of the

Treaty and without charge.

(2) No person shall be entitled to redeem from

the Bank the value of any lost, stolen, mutilated or imperfect

coin. The circumstances and conditions under which such

value may be redeemed as of grace shall be within the absolute

discretion of the Bank.

(3) After the expiration of six months following

the end of the period mentioned in the notice calling in any

coins under sub-article (1), any Maltese lira coins so called

in but not presented for redemption shall cease to be included

in the coin liabilities of the Bank and the value of such coins,

after deducting therefrom the value of any coins which are

subsequently redeemed, shall be apportioned to the profits of

the Bank over the remaining period until the expiration of the

two-year period specified under the provisions of sub-article

(1).

(4) Until the expiration of the two-year period

specified under sub-article (1), the provisions of articles 45

to 50 and of article 54 shall also apply to Maltese lira coins.

(5) For the purpose of this article, “Maltese lira

coins” means the coins which were legal tender in Malta prior

to the introduction of the euro.”.

49. The Schedule to the principal Act shall be deleted.

50. Immediately at the end of the principal Act, there shall be

inserted the following new Schedule

“SCHEDULE

(Article 2)

- Banking Act (Cap. 371);

- Financial Institutions Act (Cap. 376);

- Investment Services Act (Cap. 370);

- Insurance Business Act (Cap. 403);

- Insurance Brokers and Other Intermediaries Act (Cap. 404);

- Financial Markets Act (Cap. 345)”

PART II

AMENDMENT OF THE EXTERNAL TRANSACTIONS ACT,

51. (1) This Part amends and shall be read and construed as Amendment of the

External

one with the External Transactions Act, hereinafter referred to as “the Transactions Act,

Cap 233.

principal Act”.

(2) The provisions of this Part shall come into force on such

date as the Minister responsible for finance may by notice in the Gazette

establish.

52. Paragraph (a) of the definition of “resident” in article 2(1) of Amendment of

article 2 of the

the principal Act shall be substituted with the following

principal Act.

“(a) any natural person regardless of nationality whose

centre of economic interest is ordinarily in Malta and who has

resided in or has the intention to reside in Malta for a continuous

period of one year;”.

A

Passed by the House of Representatives at Sitting No. 501 of 28th February,

2007. A NTON T ABONE

Speaker

R ICHARD J. C AUCHI

Clerk to the House of Representatives

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

Lm1.04 (€2.42)