ACT No. XIII of 2013 AN ACT to amend the Central Bank of Malta Act, Cap. 204.

I assent.

G EORGE A BELA

(L.S.)

President

5th November, 2013

ACT No. XIII of 2013

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

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:-

(1) The short title of this Act is the Central Bank of Short title and

Malta (Amendment) Act, 2013, and this Act shall be read and coming

force.

construed as one with the Central Bank of Malta Act, hereinafter Cap. 204.

referred to as "the Act".

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

date as the Minister responsible for Finance may by notice in the

Gazette establish, and different dates may be so established for

different provisions or different purposes of this Act.

Article 2 of the Act shall be amended as follows

Amendment of

article 2 of the

Act.

(a)

the definition "director" shall be substituted by the

following

" "director", in relation to the Bank, includes the

Governor and the Deputy Governors;";

(b) in the definition "European Central Bank" the words

"with Article 8 of the Treaty" shall be substituted by the words

"with Article 13 of the Treaty on European Union" and

immediately thereafter there shall be inserted the following new

definition

" "European Systemic Risk Board" means the

Board established by Article 1 of Regulation (EU) No

1092/2010 of the European Parliament and of the Council

of 24 November 2010 on European Union macro-

prudential oversight of the financial system and

establishing a European Systemic Risk Board;

"European Union" or "Union" means the European

Union referred to in the Treaties;";

(c) the definition "Governor" shall be substituted by the

following

" "Governor", and "Deputy Governors" mean

respectively the Governor and the Deputy Governors of the

Bank appointed under article 8;";

(d) immediately after the definition " "Governor" and

"Deputy Governors" " there shall be added the following new

definition

" "Joint Financial Stability Board" means the Board

established by article 17B;";

(e) immediately after the definition "Malta" there shall

be added the following new definition

" "Member State" means a State which is a member

of the European Union;";

(f)

the definition "reserve assets" shall be deleted and

immediately after the definition "Minister" there shall be added

the following new definitions

" "participant" in relation to a payment system

means a person, including the Bank, who participates in a

payment system and may include an indirect participant

approved by the Bank if it is warranted on the grounds of

systemic risk and on condition that the indirect participant

is known to the system;

"payment system" or "system" means a formal

arrangement between three or more participants with

common rules and standardised arrangements, for the

execution of transfer orders between participants,

including a clearing house, or for the settlement of

payments relating to securities, which is approved by the

Bank, and may include a payment, clearing, settlement,

securities clearing, securities settlement, netting and, or,

similar system. The Bank may also, on a case-by-case

basis, designate as a payment system such a formal

arrangement between two participants where the Bank

considers that this is warranted on grounds of systemic

risk;";

(g) in the definition "Statute" the words "to the Treaty;"

shall be substituted by the words "to the Treaty on the

Functioning of the European Union;"; and

(h) the definition "the Treaty" shall be substituted by the

following

" "the Treaties" means the Treaty on European

Union and the Treaty on the Functioning of the European

Union, both signed at Lisbon on 13 December 2008 and as

subsequently amended.".

In sub-article (1) of article 3 of the principal Act, the word Amendment of

"Treaty", wherever it occurs, shall be substituted by the word article

principal Act.

"Treaties".

Article 4 of the principal Act shall be substituted by the Substitution of

article 4 of the

following new article

principal Act.

"4. In accordance with the Treaties 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 Union with a

view to contributing to the achievement of the objectives of the

Union as laid down in Article 3 of the Treaty on European

Union and shall act in accordance with the principles set out in

Article 119 of the Treaty on the Functioning of the European

Union.".

Article 5 of the principal Act shall be amended as follows

Amendment of

article 5 of the

principal Act.

(a)

in sub-article (1) thereof, the words "Treaty and the

Statute, the tasks" shall be substituted by the words "Treaties

and the Statute, the functions";

(b) in paragraph (b) of sub-article (1) thereof, the words

"reserve assets" shall be substituted by the words "financial

assets";

(c)

paragraphs (d), (e), (f), (g) and (h) of sub-article (1)

thereof shall be renumbered as paragraphs (e), (f), (g), (h) and

(i) of sub-article (1) respectively;

(d) immediately after paragraph (c) of sub-article (1)

thereof there shall be added the following new paragraph

"(d) to formulate and implement macro-prudential

policy;";

(e)

in sub-article (2) thereof, the word "Treaty" shall be

substituted by the word "Treaties"; and

(f)

sub-article (3) thereof shall be deleted.

Article 7 of the principal Act shall be amended as follows

(a)

in sub-article (1) thereof the word "Treaty" shall be

substituted the word "Treaties"; and

(b) in sub-article (2) thereof, the words "the Deputy

Governor and the three other directors appointed under article

9" shall be substituted by the words "the two Deputy Governors,

and the four other directors appointed under article 9".

Article 8 of the principal Act shall be amended as follows

(a)

the marginal note thereof shall be substituted by the

following

"Governor and Deputy Governors.";

(b) in sub-article (1) thereof the words "The Governor

and the Deputy Governor shall be" shall be substituted by the

words "The Governor and the Deputy Governors shall be";

(c)

in paragraph (a) of sub-article (2) thereof the word

"Treaty" shall be substituted by the word "Treaties";

(d) sub-article (3) thereof shall be substituted by the

following

"(3) One Deputy Governor shall support the

Governor by performing duties related to monetary policy

and other duties as the Governor may direct. A second

Deputy Governor shall support the Governor by

performing duties related to financial stability and other

duties as the Governor may direct. In the event of -

(a) the absence of the Governor, the

Governor shall designate a Deputy Governor to

perform the duties of the Governor;

(b) a vacancy in the office of the Governor,

the Board shall designate a Deputy Governor to

perform the duties of the Governor, until a new

Governor is appointed as soon as possible under

subarticle (1);

and the Deputy Governor so designated shall have and

may exercise the powers and perform the functions of the

Governor.";

(e)

in sub-article (4) thereof the words "The Governor

and the Deputy Governor shall devote" shall be substituted by

the words "The Governor and the Deputy Governors shall

devote" and in the proviso thereto the words "as Governor or

Deputy Governor of the Bank" shall be substituted by the words

"as Governor or Deputy Governors of the Bank"; and

(f)

in sub-article (5) thereof the words "The Governor

and the Deputy Governor may be" shall be substituted by the

words "The Governor and the Deputy Governors may be".

Article 9 of the principal Act shall be amended as follows

Amendment of

article 9 of the

principal Act.

(a)

the marginal note thereof shall be substituted by the

following

"Directors other than Governor and Deputy

Governors"; and

(b) in sub-article (1) thereof the words "the Governor

and the Deputy Governor" shall be substituted by the words "the

Governor and the Deputy Governors".

Article 12 of the principal Act shall be amended as Amendment of

article 12 of the

follows

principal Act.

(a)

in sub-article (3) thereof the words "the Deputy

Governor shall preside" shall be substituted by the words "a

Deputy Governor shall preside" and the words "nor the Deputy

Governor is present" shall be substituted by the words "nor the

Deputy Governors are present"; and

(b) in sub-article (4) thereof the words "Three

members" shall be substituted by the words "Five members" and

the words "the Deputy Governor" shall be substituted by the

words "a Deputy Governor".

In article 13 of the principal Act the words "nor the Deputy

Governor" shall be substituted by the words "nor a Deputy

Governor".

Article 17 of the principal Act shall be amended as

(a) the marginal note thereof shall be substituted by the

following

"Monetary operations and other functions of the

Bank.";

(b) in sub-article (1) thereof, the word "Treaty" shall be

substituted by the word "Treaties", and for the word "tasks"

there shall be substituted the word "functions";

(c)

paragraph (a) of sub-article (1) thereof shall be

substituted by the following new paragraph

"(a) opening of accounts for persons as provided

in this Act, and, in special cases for other persons with the

prior approval of the Board;";

(d) paragraph (b) of sub-article (1) thereof shall be

substituted by the following new paragraph

"(b) maintenance of accounts with central banks

or other domestic or foreign credit institutions and agents

and acting 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;";

(e)

in paragraph (c) of sub-article (1) thereof the words

"to subscribe to, purchase, sell, discount or re-discount" shall be

substituted by the words "subscription to, purchasing, selling,

discounting or re-discounting";

(f)

in paragraph (d) of sub-article (1) thereof, the words

"to issue, purchase, sell, discount or re-discount" shall be

substituted by the words "issuing, purchasing, selling,

discounting or re-discounting";

(g) in paragraph (e) of sub-article (1) thereof, the words

"to grant" shall be substituted by the word "granting";

(h) in paragraph (f) of sub-article (1) thereof, the words

"to enter" shall be substituted by the word "entering";

(i)

in paragraph (g) of sub-article (1) thereof, the words

"to grant" shall be substituted by the word "granting";

(j)

sub-articles (2) to (7) thereof shall be renumbered as

sub-articles (3) to (8) respectively;

(k) immediately after sub-article (1) thereof, there shall

be added the following new sub-article (2)

"(2) In accordance with the Treaties and the

Statute, credit institutions may be required to hold

minimum reserves with the Bank, and to report thereon.";

(l)

in sub-article (3), as re-numbered, thereof, the word

"reserve" shall be substituted by the word "financial";

(m) in paragraph (a) of sub-article (3), as re-numbered,

thereof, the word "reserve" shall be substituted by the word

"financial";

(n) in paragraph (b) of sub-article (3), as re-numbered,

thereof, the word "transaction" shall be substituted by the word

"transactions";

(o) in sub-article (4), as re-numbered thereof, the words

"may invest its staff and pension funds" shall be substituted by

the words "may invest staff and pension funds"; and

(p) in paragraph (a) of sub-article (7), as re-numbered,

thereof, the words "as a Central Bank" shall be substituted by

the words "as a central bank".

Immediately after article 17 of the principal Act there shall Addition of new

article to the

be added the following new article

principal Act.

" Macro-

(1) In accordance with the provisions of the

prudential

Treaties and the Statue, the Bank may issue, amend or

Policy.

revoke directives in order to implement macro-

prudential policy and tools.

(2) Without prejudice to any other provisions on

the exchange of information under the Treaties and the

Statute or legal acts issued thereunder, the Bank may,

on the basis of international agreements or upon

reciprocity agreements, or otherwise in order to fulfil its

international obligations in relation to macro-prudential

oversight, cooperate with the European Systemic Risk

Board and, as may be required, with other national or

international macro-prudential authorities, in the

exchange of information which is required to ensure

effective macro-prudential oversight.".

13. Immediately after the new article 17A of the principal Act,

there shall be added the following new article

(1) There shall be a Joint Financial

Stability Board which is a body established for the

purpose of ensuring effective cooperation between the

Bank and the competent authority in the area of

financial stability and which shall have the functions set

out in this Act.

(2) The Joint Financial Stability Board shall be

composed of the Governor of the Bank, who shall be

the Chairman, and in his absence the Deputy Governor

of the Bank responsible for financial stability who shall

preside, two other representatives of the Bank and two

representatives of the competent authority.

(3) The Minister may appoint a representative to

participate as a non-voting observer at meetings of the

Joint Financial Stability Board. The Chairman may co-

opt other non-voting observers.

(4) Without prejudice to the Treaties, the Statute

and any legal acts issued thereunder, the Joint Financial

Stability Board shall have the function to facilitate

cooperation between the relevant authorities in matters

impacting on financial stability, including macro-

prudential policy and, where relevant, micro-prudential

instruments. In addition, it shall have the following

functions

(a)

to formulate policy recommendations

designed to safeguard the stability of the financial

system and which may be communicated to the

relevant public authority or public institution;

(b) to identify and assess macro-

prudential instruments and, where relevant,

micro-prudential instruments required to be

implemented to mitigate or control potential

systemic and other risks to the financial system;

(c)

to give advice about whether and how

an authority or public institution should act in

respect of a credit or financial institution, where

the issue appears to the Joint Financial Stability

Board to be relevant to the stability of the

financial system;

and any such recommendation, advice or assessment

made by the Joint Financial Stability Board shall be

taken into consideration by a public authority or public

institution in Malta in the execution of its functions. It

shall be the duty of such public authority or public

institution to seek the opinion of the Joint Financial

Stability Board prior to exercising any functions in

matters which may impact on financial stability.

(5) The Joint Financial Stability Board shall

meet as often as may be necessary or expedient but in

any case not less frequently than once every three

months. The meetings shall be convened by the

Chairman either on his own initiative or on the written

request of any three members.

(6) The Joint Financial Stability Board may act

notwithstanding any vacancy amongst its members

provided there is a quorum consisting of not less than

three members present at the meeting including one

member from the competent authority.

(7) Subject to the provisions of this article, the

Joint Financial Stability Board shall regulate its own

procedure.".

14. Article 18 of the principal Act shall be substituted by the Substitution of

Without prejudice to the Treaties, the

Statute and any legal acts issued thereunder any data

or information which is transferred within the Bank

and, or between the Bank and other persons or entities

under the provisions of this Act or of directives issued

thereunder, shall be transferable without any

restriction or limitation arising under any other law, in

particular but not solely related to secrecy or

confidentiality, provided that such data or information

shall retain its secret or confidential status for other

effects and purposes.".

15. Article 21 of the principal Act shall be amended as

(a)

in paragraph (a) of sub-article (1) thereof the words

"by the auditors," shall be substituted by the words "by the

auditors; and";

(b) paragraph (b) of sub-article (1) thereof shall be

deleted and paragraph (c) shall be renumbered as paragraph (b);

(c)

in sub-article (2) thereof, for the words "the report

referred to in paragraph (c)" there shall be substituted the words

"the report referred to in paragraph (b)"; and

(d) in paragraph (a) of sub-article (3) thereof, the words

", of the statement" shall be deleted.

16. The title in Part IV of the principal Act shall be substituted

by the following

"COLLECTION

OF

STATISTICAL

AND

OTHER

INFORMATION".

17. Article 23 of the principal Act shall be substituted by the

(1) Without prejudice to the functions of

the Bank to collect statistical information under the

Treaties and the Statute and any legal acts issued

thereunder, and without prejudice to the provisions of

article 36(2), the Bank may require any person in

general or any entity which is licensed, authorised or

registered by a competent authority, any branch of a

foreign legal person, or any other person or entity, as

may be determined by the Bank, to provide the Bank

with such statistical and other information as the Bank

may consider necessary to carry out its functions under

this Act or any other Act, including in relation to its

macro-prudential policy function, and the Bank may

enquire into and ask for clarifications of any

information so provided.

(2) It shall be the duty of every person or entity

required to provide the Bank with statistical and other

information to comply with such requirement, without

invoking any professional or other secrecy restrictions.

(3) The Bank may issue directives providing

for the definition and imposition of reporting

requirements, establishing the standards for

transmission and accuracy of statistical and other

information, and specifying the conditions under

which the right to verify or to carry out the compulsory

collection of statistical and other information may be

exercised under the provisions of subarticle (4).

(4) The Bank shall have the right to verify the

accuracy and quality of statistical and other

information submitted under this article, and to carry

out its compulsory collection. The right to verify

statistical and other information or to carry out its

compulsory collection shall comprise the right to

(a) require submission of documents;

(b) examine the books and records of the

persons or entities referred to in subarticle (1);

(c)

take copies or extracts from such

books and records; and

(d) obtain written or oral explanations.

Any reference to documents, books or records

under this article includes a reference to the electronic

form of any such documents, books or records.

(5) Except as provided for under Part VIII and

Part IX of this Act, information collected under the

provisions of this article shall be subject to

professional secrecy.

(6) When it deems it necessary in the carrying

out of its tasks under this Act and any other Act, the

Bank shall prepare and publish statements,

consolidating and, or aggregating statistical and other

information so furnished under this article and, where

necessary, under article 36(1).

(7) The duty of any public authority to consult

the National Statistics Office under article 39(2) of the

Malta Statistics Authority Act when it undertakes

activities with statistical implications shall not apply

to the Bank in relation to the execution of its functions

under this Act.".

18. Article 24 of the principal Act shall be deleted.

19. Article 26 of the principal Act shall be amended as

(a)

in sub-article (1) thereof, the words "and accept

deposits from" shall be deleted; and

(b) in sub-article (2) thereof, the words "and accept

deposits from" shall be deleted.

20. In sub-article (1) of article 27 of the principal Act, for the

words "Community institutions or bodies" there shall be substituted

the words "European Union institutions or bodies".

21. Article 30 of the principal Act shall be amended as

(a)

in sub-article (1) thereof, for the words "and may

open accounts for and accept deposits from such credit and

financial institutions" there shall be substituted the words "and

may open accounts for credit institutions and financial

institutions"; and

(b) in sub-article (2) thereof, the words "and place

deposits" shall be deleted.

22. Article 31 of the principal Act shall be substituted by the

following new article

(1) The Bank may appoint one or

more credit or financial institutions in Malta to act

as its agent for the issue, re-issue, exchange and

withdrawal of currency notes and coins, or for

other purposes, on such terms and conditions as

may be agreed between the Bank and each of such

credit or financial institutions.

(2) The Bank may also appoint one or more

agents to provide services related to the storage,

authentication, processing, counting and packaging

of currency notes and coins.".

23. For the words "PAYMENT SYSTEMS" in the heading of Substitution of

Part VII of the principal Act, there shall be substituted the words heading

VII of the

"PAYMENT SYSTEMS AND PAYMENT SERVICES".

principal Act.

24. Article 32 of the principal Act shall be deleted.

Deletion of

article 32 of the

principal Act.

25. Article 33 of the principal Act shall be deleted.

Deletion of

article 33 of the

principal Act.

26. Article 34 of the principal Act shall be amended as Amendment of

article 34 of the

principal Act.

(a) in sub-article (1) thereof, for the word "Treaty" there

shall be substituted the word "Treaties";

(b) sub-article (2) thereof shall be substituted by the

following new sub-article

"(2) No person shall organise, establish, operate or

participate in a domestic payment system unless such

system, including the rules of the system, are approved by

the Bank and, without prejudice to subarticle (3), the Bank

shall have the right to order

(a) the closure of a domestic payment

system which has been set up, or is being operated,

without the necessary approval, and

(b) the suspension of the operations of an

approved domestic payment system or the revocation

of the approval granted by the Bank in cases where

the domestic payment system is or has been operated

in breach of such approval, or of any term or

condition imposed by the Bank,

and the person concerned shall abide by any such orders

issued by the Bank.";

(c)

sub-article (5) thereof shall be substituted by the

following new sub-article

"(5) The Bank may issue, amend or revoke

directives in respect of any or all of the objects mentioned

in subarticles (1) and (2) including, without prejudice to

the generality of the aforesaid, the regulation of payment

systems, the regulation of clearing houses, settlement

agents and participants in payment systems as well as the

legal enforceability of payments made through such

systems and the collateral given in connection with the

operation of such a payment system

Provided that the Bank’s powers to issue

directives under this subarticle shall be exercised in

accordance with the Treaties, Article 22 of the Statute and

any regulations issued thereunder."; and

(d)

sub-article (7) thereof shall be deleted.

27. Immediately after article 34 of the principal Act there shall

be added the following

(1) Without prejudice to the Treaties,

the Statute and any legal acts issued thereunder, the

Bank may, in order to promote the stable and

sustainable development and provision of payment

instruments, issue, amend or revoke directives

which impose conditions on the provision of

payment services.

(2) The Bank is appointed as competent

authority for the purposes of Article 9 of

Regulation (EC) No 924/2009 of 16 September

2009 on cross-border payments in the Community

and repealing Regulation (EC) No 2560/2001, and

shall be responsible to monitor compliance with

this Regulation and to take all the necessary

measures to ensure such compliance.

(3) The Bank is also appointed as

competent authority for the purposes of Article 10

of Regulation (EU) No 260/2012 of 14 March 2012

on

establishing

technical

and

business

requirements for credit transfers and direct debits

in euro and amending Regulation (EC) No 924/

2009, and shall be responsible to monitor

compliance with this Regulation and take all

necessary measures to ensure such compliance.".

28. Article 35 of the principal Act shall be substituted by the Substitution of

following new article

Any person who

(a) is aggrieved by decisions taken by

the Bank under article 34(2) or under any

directives issued under articles 34(5) or 34A;

(b) is a party to any dispute in respect

of rights and obligations arising under any

directives issued under articles 34(5) or

34A(1) or under the provisions of Regulation

(EC) No 924/2009 of 16 September 2009 on

cross-border payments in the Community and

repealing Regulation (EC) No 2560/2001; or

(c) is a party to any dispute arising in

respect of rights and obligations under the

provisions of Regulation (EU) No 260/2012

of 14 March 2012 on establishing technical

and business requirements for credit transfers

and direct debits in euro and amending

Regulation (EC) No 924/2009; or

(d) has had an administrative penalty

imposed upon him pursuant to article 56,

may appeal to the Financial Services Tribunal

established under article 21 of the Malta Financial

Services Authority Act within such period and

under such conditions as established under that

Act.".

29. Article 39 of the principal Act shall be amended as Amendment of

(a)

the marginal note thereof shall be substituted by the

"Participation

in

International

and

other

Organisations."; and

(b) for the word "Treaty" there shall be substituted the

word "Treaties".

30. In article 41 of the principal Act for the words "The Bank

may", there shall be substituted the words "Without prejudice to any

other provisions on the disclosure of information under the Treaties

and the Statute or legal acts issued thereunder, the Bank may,".

31. In article 42 of the principal Act, for the words "Article

106 of the Treaty" there shall be substituted the words "Article 128 of

the Treaty on the Functioning of the European Union".

32. Article 43 of the principal Act shall be amended as

(a)

in sub-article (2) thereof, for the words "Article 106

of the Treaty" there shall be substituted the words "Article 128

of the Treaty on the Functioning of the European Union"; and

(b) immediately after sub-article (2) thereof, there shall

be added the following new sub-articles

"(3) In accordance with the Treaties or any legal

acts issued thereunder, the Bank shall have the sole right in

Malta of issuing legal tender euro collector coins not

intended for circulation which are legal tender only in

Malta.

(4) Without prejudice to subarticle (1) and in

accordance with the Treaties or any legal acts issued

thereunder, the Bank shall have the sole right in Malta to

issue euro circulation coins and commemorative euro

circulation coins.".

33. Article 44 of the principal Act shall be substituted by the

following new article

" Reference

For the purposes of the following

to currency

provisions of this Part, any reference to the terms

note or coin.

"currency note" or "coin" shall be a reference to

euro banknotes or euro coins or any other note or

coin, by whatever name called, which is legal

tender in the country outside Malta in which it is

issued.".

34. In sub-article (1) of article 49 of the principal Act, for the

words from "Whosoever counterfeits or lightens" to the words "and

not exceeding nine years:", there shall be substituted the following

"Whosoever counterfeits or utters any counterfeit coin or,

without lawful authority or lawful or reasonable excuse (the

proof whereof shall lie on the accused person) lightens or

impairs or melts down any coin or introduces or utters any

debased coin knowing the same to be counterfeit or debased

shall be liable, on conviction, to imprisonment for a term of not

less than thirteen months and not exceeding nine years:".

35. Article 50 of the principal Act shall be amended as Amendment of

article 50 of the

principal Act.

(a)

sub-articles (2) and (3) thereof shall be renumbered

as sub-articles (3) and (4) respectively;

(b) immediately after sub-article (1) thereof, there shall

be added the following new sub-article

"(2) A cash handler as referred to in Article 6 of

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

laying down measures necessary for the protection of the

euro against counterfeiting, and as subsequently amended,

shall have an obligation to ensure that euro currency notes

and coins which it has received and which it intends to put

back into circulation are checked for authenticity and

counterfeits are detected. Any counterfeits so detected

shall be delivered immediately to the Bank."; and

(c)

immediately after sub-article (4), as renumbered,

thereof, there shall be added the following new sub-article

"(5) Where a cash handler as referred to in

subarticle (2), or any other person delivers

counterfeit currency notes or coins to the Bank in

accordance with subarticle (1), that person shall

upon request provide the Bank with information on

his identity and the identity of the person through

whom it received such currency notes or coins if

available, as well as information on the relevant

date, time and method of receipt. The provision of

such information shall be considered a necessary

measure in terms of paragraphs (d), (e) and (f) of

article 23(1) of the Data Protection Act.".

36. Immediately after article 50 of the principal Act, there Addition of new

article to the

shall be added the following new article

principal Act.

The Bank, in order to protect the

integrity of euro currency notes and coins, and to

implement the provisions of Decision ECB/2010/

14 of 16 September 2010 on the authenticity and

fitness checking and recirculation of euro

banknotes and of Regulation 1210/2010 of the

European Parliament and of the Council of 15

December 2010 concerning authentication of euro

coins and handling of euro coins unfit for

circulation, may issue, amend or revoke directives

which lay down rules and procedures on the

authentication, fitness checking and recirculation

of euro currency notes and coins. Without

prejudice to the generality of the aforesaid, the

Bank may, in any such directives, lay down

procedures to carry out on-site inspections,

conduct any monitoring exercise and impose

reporting requirements related to the authentication

and fitness checking of euro currency notes and

coins and may further impose administrative

measures to ensure compliance with any such

directives.".

37. Article 55 of the principal Act shall be substituted by the

following new article

"55. (1) In accordance with the provisions of Council

Regulation (EC) No 2182/2004 concerning medals and tokens

similar to euro coins, and as subsequently amended, whosoever,

unless authorised by the Commission of the European Union,

produces, sells, imports or distributes for sale or for other

commercial purposes medals and tokens, other than exempted

medals and tokens as provided in the said Regulation, similar to

euro coins shall be guilty of an offence and shall, on conviction,

be liable to a fine (multa) not exceeding twenty-three thousand

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

or to both such fine and imprisonment.

(2) Subarticle (1) shall not apply to medals and tokens

issued before 6 December 2004.".

38. Article 56 of the principal Act shall be substituted by the

following new article

"56. Without prejudice to the Treaties and the Statute and

any legal acts issued thereunder, the Bank may impose

administrative penalties which may be recovered by the Bank

without recourse to a court hearing and which may be imposed

either as a one-time penalty or on a daily cumulative basis until

compliance in respect of the following

(a) where any person contravenes or fails to

comply with a requirement contained in any directive

issued under articles 34(5), 34A(1), 43A, 50A or 60A;

(b) where a person or entity contravenes or fails

to comply with a reporting requirement under the

provisions of article 23, or with any directive issued

thereunder;

(c) where any person contravenes or fails to

comply with any obligation relating to counterfeit currency

notes or coins or the authentication and fitness checking of

euro currency notes and coins under the provisions of

article 50;

(d) 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 over the

body corporate,

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

commission of such offences or the attempted commission

of such offences;

(e) upon any body corporate where the lack of

supervision or control by the person referred to in

paragraph (d) 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

(f) where any person (payment service provider)

contravenes or fails to comply with the provisions of

Regulation (EC) No 924/2009 of 16 September 2009 on

cross-border payments in the Community and repealing

Regulation (EC) No 2560/2001; and

(g) where any person, other than any natural

person who is not acting for purposes of trade, business or

profession in payment service contracts, contravenes or

fails to comply with the provision of Regulation (EC) No

260/2012 of 14 March 2012 on establishing technical and

business requirements for credit transfers and direct debits

in euro and amending Regulation (EC) No 924/2009

Provided that an administrative penalty imposed by

the Bank may not be greater than

(a) fifty thousand euro in case of a one-time

penalty; and

(b) five hundred euro per day for every day in

the case of a daily cumulative penalty, and the

accumulated penalty shall not exceed fifty thousand

euro.".

39. Article 57 of the principal Act shall be amended as

(a) sub-article (1) thereof shall be substituted by the

following new sub-article

"(1) Where by virtue of the provisions of article

56, the Bank imposes an administrative penalty, it shall so

notify the person or, in the case of an entity under article

23, the person in charge of the administrative affairs of that

entity, on whom the penalty is being imposed by means of

a notice in writing.";

(b) in sub-article (2) thereof, for the words "reporting

agent" there shall be substituted the words "person or entity",

and for the words "article 56(2)(a)" there shall be substituted the

words "article 56(b)"; and

(c) in sub-article (3) thereof, immediately after the

words "such person", wherever they appear, there shall be added

the words "or entity".

40. Article 60 of the principal Act shall be re-numbered as

sub-article (1) of the said article, and immediately thereafter there

shall be added the following new sub-article

"(2) Without prejudice to the Treaties, the Statute and

any legal acts issued thereunder and without prejudice to the

ability of the Bank to carry out its functions under this Act, the

Treaty and the Statute, the Minister may, after consultation with

the Bank, by regulations appoint the Bank to act as competent

authority for the purposes of any regulation or other legal act

issued under the Treaties or the Statute or when otherwise

required as a result of Malta’s membership of the European

Union or in order to carry out a function which is important for

the stability or orderly functioning of the financial system. The

Minister may further provide in such regulations for anything

that is necessary for the carrying into effect of any of the

provisions of any such regulation or other legal act, including to

empower the Bank to issue and enforce sanctions and to grant

competence to any court or tribunal in Malta to settle disputes

arising under such regulations or other legal acts.".

41. Immediately after article 60 of the principal Act, there Addition of new

article to the

shall be added the following new article

principal Act.

" Power to

(1) The Bank may issue, amend or

issue, amend

revoke directives as may be required for carrying

and revoke

into effect any of the provisions of this Act, the

directives.

Treaties and the Statute.

(2) Directives issued by the Bank may be in

the English language only.".

42. Article 61 of the principal Act shall be substituted by the Substitution of

article 61 of the

following new article

principal Act.

"61. (1) Reference in any law to the Bank’s discount,

central intervention, and, or official interest rates shall be a

reference to the minimum bid rate on main refinancing

operations established by the Governing Council of the

European Central Bank.

(2) Unless otherwise indicated by the context, reference

in any law to exchange rates published by the Bank shall be a

reference to exchange rates published by the Bank as well as

exchange rates published by the European Central Bank.".

43. In sub-article (1) of article 62 of the principal Act, for the Amendment of

article 62 of the

word "Treaty" there shall be substituted the word "Treaties".

principal Act.

44. In sub-article (1) of article 63 of the principal Act, for the Amendment of

article 63 of the

word "Treaty" there shall be substituted the word "Treaties".

principal Act.

45. In the Schedule to the principal Act, immediately after the

words "Financial Markets Act (Cap. 345)" there shall be added the

words "Securitisation Act (Cap. 484)".

Passed by the House of Representatives at Sitting No. 69 of the

30th October, 2013.

A NĠLU F ARRUGIA

Speaker

R AYMOND S CICLUNA

Clerk to the House of Representatives