ACT No. XXX of 2020 AN ACT to amend the Central Bank of Malta Act, Cap. 204.

I assent.

(L.S.)

GEORGE VELLA

President

12th June, 2020

ACT No. XXX of 2020

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 Malta

commencement.

(Amendment) Act, 2020, and this Act shall be read and construed as

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

principal Act".

(2) The provisions of this Act 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.

In the heading of Part VII of the principal Act under the

Arrangement of the Act, the words "Payment Systems and Payment

Services" shall be substituted by the words "Payments Landscape".

Article 2 of the principal Act shall be amended as follows

Amendment of

article 2 of the

principal Act.

(a) immediately after the definition "the Community"

there shall be added the following new definitions

" "credit information" means a collection of public

and non-public information and other related information,

including Central Credit Register data, which when

assessed, assembled and evaluated indicates the

creditworthiness of a legal or natural person;

"credit reference agency" means any undertaking

licenced by the Trade Licensing Unit in terms of regulation

47A of the Trading Licences Regulations, the main S.L. 441.07.

business of which is to prepare, assemble and evaluate

credit information and related credit and risk management

services on legal and natural persons for the purpose of

issuing credit scores to be furnished to third parties,

provided that a credit reference agency is not precluded

from carrying out other related tasks;

"credit score" means a measure of creditworthiness

derived from credit information and which must under pain

of nullity include data derived from the Central Credit

Register;";

(b) immediately after the definition "participant" there

shall be added the following new definitions

" "payment application" means computer software or

equivalent, loaded on a device enabling payment

transactions to be initiated and allowing the payer to issue

payment orders;

"payment card scheme" means a single set of rules,

practices, standards and/or implementation guidelines for

the execution of card-based payment transactions;

"payment service" means any business activity set

out in Annex I of the Directive (EU) 2015/2366 of the

European Parliament and of the Council of 25 November

2015 on payment services in the internal market, amending

Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and

Regulation (EU) No. 1093/2010, and repealing Directive

2007/64/EC;

"Payment Services Directive" means Directive (EU)

2015/2366 of the European Parliament and of the Council

of 25 November 2015 on payment services in the internal

market, amending Directives 2002/65/EC, 2009/110/EC

and 2013/36/EU and Regulation (EU) No. 1093/2010, and

repealing Directive 2007/64/EC, as may be amended from

time to time and includes any implementing measures that

have been issued or may be issued thereunder;

"payment service provider" has the same meaning

assigned to it by article 4 of the Directive (EU) 2015/2366

of the European Parliament and of the Council of 25

November 2015 on payment services in the internal

market, amending Directives 2002/65/EC, 2009/110/EC

and 2013/36/EU and Regulation (EU) No. 1093/2010, and

repealing Directive 2007/64/EC;

"payment service user" has the same meaning

assigned to it by article 4 of the Directive (EU) 2015/2366

of the European Parliament and of the Council of 25

November 2015 on payment services in the internal

market, amending Directives 2002/65/EC, 2009/110/EC

and 2013/36/EU and Regulation (EU) No. 1093/2010, and

repealing Directive 2007/64/EC;";

(c) immediately after the definition "payment system" or

"system" there shall be added the following new definition

" "payment transaction" means an act, initiated by the

payer or on his behalf or by the payee, of placing,

transferring or withdrawing funds, irrespective of any

underlying obligations between the payer and the payee;";

and

(d) immediately after the definition "Statute" there shall

be added the following new definition

" "supervisory authority" means the authority

responsible for the supervision and monitoring of credit

reference agencies licensed in accordance with the Trading

Licences Regulations;".

Article 23 of the principal Act shall be amended as follows

(a) in sub-article (1) thereof, the words "so provided."

shall be substituted by the words "so provided:" and immediately

thereafter there shall be added the following new proviso

"Provided that the Bank may provide any

person, as described in sub-article (1), with statistical and

other information as the Bank may consider necessary to

carry out its functions under this Act or any other Act.";

and

(b)

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

following

"(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, the safeguards to be in

place and 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

sub-articles (1) and (4).".

Article 24 of the principal Act shall be amended as follows

Amendment of

article 24 of the

principal Act.

(a) in sub-article (2) thereof, immediately after the

words "and other institutions" there shall be added the words ",

including the Malta Development Bank for the purposes of

fulfilling its functions under the Malta Development Bank Act,"; Cap. 574.

(b) sub-article (4) thereof shall be substituted by the

following

"(4) Without prejudice to article 41, the Bank may

provide access to the information held on the Register

(a) on the basis of reciprocity arrangements

to central banks and other institutions of Member

States of the European Union, and to other

institutions of the European Union, that create

databases comparable to the Register;

(b) to the Listing Authority for the purposes

of performing the functions set out in Part III of the

Financial Markets Act;

(c) to the Malta Stock Exchange for the

purposes of fulfilling its objects;

(d) and to any other institution as the Bank

may consider necessary

Provided that the conditions of access to

this information and the confidentiality requirements

in the Member State in question meet the criteria as

laid down by this Act.";

(c) in sub-article (6) thereof, immediately after the

words "to pass to it" there shall be added the word "non-

financial"; and

(d) in sub-article (7) thereof, immediately after the

words "extracts of the information" there shall be added the word

"non-financial".

Immediately after article 24 of the principal Act there shall be

added the following new article

(1) The Bank shall be the supervisory

reference agencies. authority of the credit reference agencies solely for the

purpose of overseeing and regulating the task of issuing

credit scores, which will include granular information

from the Register established under article 24

Provided that the Bank’s supervisory powers

will include both off-site and on-site inspections at the

premises of the credit reference agency, and any

branch, agent or office providing licensable activities

under the responsibility of the credit reference

agency.

(2) The Bank may issue, amend or revoke

directives as it shall consider appropriate for the

carrying into effect the provisions of sub-article (1).

(3) Any credit reference agency shall be subject

to an annual supervisory fee as may be prescribed,

which is payable upon the granting of the licence, and

thereafter upon every anniversary thereof.".

7. In the heading of Part VII of the principal Act, the words

"Payment Systems and Payment Services" shall be substituted by the

words "Payments Landscape".

8. Article 34 of the principal Act shall be amended as follows

(a) in sub-article (1) thereof, the word "security" shall be

substituted by the word "securities"; and

(b) in sub-article (2) thereof, immediately after the

words "sub-article (3)" there shall be added the words "and

article 56(2) or to any other penalty which may be imposed

under this Act,".

9. Article 34A of the principal Act shall be amended as follows

Amendment of

article 34A of

the principal

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

Act.

following

"(1) Without prejudice to the Treaties, the Statute

and any legal acts issued thereunder, the Bank shall, in

order to promote the stable and sustainable development

and provision of the payments landscape in Malta, oversee

and regulate the provision of payment services, payment

applications, payment card schemes and payment

transactions by credit institutions and financial

institutions.";

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

as sub-articles (6) and (7) respectively; and

(c) immediately after sub-article (1) thereof, as

substituted, there shall be added the following new sub-articles

"(2) No credit institution or financial institution

shall provide any services under sub-article (1) unless it

notifies the Bank.

(3) The Bank shall have the power to review the

rules and procedures of any payment service, payment

application, payment card scheme and payment transaction

in Malta, and in so doing may require the full assistance

and collaboration of any credit institution or financial

institution as may be necessary to enable it to fulfil its

functions under this Act.

(4) Without prejudice to article 56(2) or to any

other penalty which may be imposed under this Act, the

Bank shall have the right to

(a) make an order restraining a credit

institution or a financial institution from taking or

continuing to take an action which is deemed by the

Bank to go against the stable and sustainable

development and provision of the payments

landscape in Malta;

(b) suspend the provision of any payment

service, payment application, payment card scheme

and payment transaction, where a credit institution or

a financial institution fails to comply with any lawful

order or requirement of the Bank, and the Bank may

make public the fact that a credit institution or a

financial institution is failing to comply with an order

or requirement made under the provisions of this

article, and may disclose measures or sanctions

imposed on any institution

Provided that the information published

in terms of this sub-article shall remain on the official

website of the Bank for a period of not less than three

years.

(5) The Bank may issue, amend or revoke

directives which impose conditions on the provision of

payment services, payment applications, payment card

schemes and payment transactions in Malta.".

10. Paragraph (a) of article 35 of the principal Act shall be

substituted by the following

"(a) is aggrieved by decisions taken by the Bank under

articles 24A(1), 34(2), 34A(4) or under any directives issued

under articles 24A, 17A, 34(5) or 34A(5);".

11. In sub-article (2) of article 37 of the principal Act,

immediately after the words "article 23" there shall be added the words

", and the promotion of the stable and sustainable development and

provision of the payments landscape in Malta under article 34A".

12. In the marginal note of sub-article (4) of article 50 of the

principal Act, the words "Cap. 440." shall be substituted by the words

13. Article 56 of the principal Act shall be amended as follows

(a) the article shall be renumbered as article 56(1);

(b) in sub-article (1) as renumbered, immediately after

the words "issued thereunder" there shall be added the words

"and to the provisions of article 34(3)";

(c) paragraph (a) of sub-article (1) as renumbered shall

be substituted by the following

"(a) where any person or entity contravenes or fails

to comply with a requirement contained in any directive

issued under articles 17A, 24A, 50A or 60A;";

(d) paragraphs (d) and (e) of sub-article (1) as

renumbered shall be deleted;

(e) paragraphs (f) and (g) of sub-article (1) as

renumbered shall be renumbered as paragraphs (d) and (e)

respectively; and

(f) immediately after sub-article (1) as renumbered there

shall be added the following new sub-article

"(2) Without prejudice to the right of appeal granted

under the provisions of article 35 and notwithstanding the

provisions of sub-article (1), where a person contravenes or

fails to comply with an order or a requirement under the

provisions of articles 34 and 34A, or with any directive

issued thereunder, the Bank may impose an administrative

penalty recoverable by the Bank without recourse to a court

hearing of up to two per cent (2%) of the total value of

transactions transacted by such person in the preceding

business year, and in any case not more than one million

euro (€1,000,000).".

14. In the Schedule to the principal Act, immediately after the Amendment of

words "Securitisation Act (Cap. 484)" there shall be added the words the

the principal

"Malta Financial Services Authority Act (Cap. 330)".

Act.

Passed by the House of Representatives at Sitting No. 341 of the

9th June, 2020.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€ 0.90