CENTRAL BANK OF MALTA ACT

CHAPTER 204

CENTRAL BANK OF MALTA 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.

17th April, 1968

7th June, 1968

1st January, 2000

ACT XXXI of 1967, as amended by Acts: X and XXIX of 1968, XVII and XX of 1971, XXIV of

1972, XIX and LVIII of 1974; Legal Notice 148 of 1975; and Acts: XX of 1981, XIII of 1983,

XXXVIII of 1986, XI of 1988, XIV and XXVI of 1994, XXIV of 1995, IX and XVI of 1997, XVII

of 2002, III of 2004, IX of 2005, I and IV of 2007, XIII of 2013, XXIV of 2014, and IX and

XLIX of 2016 and XXX of 2020 , XII of 2021 and XIII of 2024.

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

Added by

I. 2007.50.

(Article 2)

Amended by

XIII. 2013.45;

XXX.2020.14.

-

Banking Act (Cap. 371);

-

Financial Institutions Act (Cap. 376);

-

Investment Services Act (Cap. 370);

-

Insurance Business Act (Cap. 403);

-

Insurance Distribution Act (Cap. 487);

-

Financial Markets Act (Cap. 345);

-

Securitisation Act (Cap. 484);

-

Malta Financial Services Authority Act (Cap. 330).

In this Act, unless the context otherwise requires -

"Bank" means the Central Bank of Malta established by article 3;

''bank'' or ''credit institution'' has the same meaning assigned to it

by article 2 of the Banking Act and includes any branch, agency or

office in Malta of a bank or credit institution not incorporated in

Malta;

"Board" means the Board of Directors of the Bank established by

article 7;

''business of banking'' has the same meaning assigned to it by

article 2 of the Banking Act;

''the Community'' means the European Community referred to in

article 2 of the European Union Act;

"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 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;

"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;

''directive'' means a directive issued by the Bank under this Act;

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

Deputy Governors;

' ' E u r o p e a n C e n t r a l B a n k ' ' m ea n s t h e b a n k e s t a b l i s h e d i n

accordance with Article 13 of the Treaty on European Union;

"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;

"financial institution" has the same meaning assigned to it by

article 2 of the Financial Institutions Act, and includes any branch

in Malta of an institution not incorporated in Malta;

"Governor" and "Deputy Governors" mean respectively the

Governor and the Deputy Governors of the Bank appointed under

article 8;

"Joint Financial Stability Board" means the Board established by

article 17B;

"Malta" has the same meaning as is assigned to it by article 124

of the Constitution of Malta;

"Member State" means a State which is a member of the European

Union;

"Minister" means the Minister responsible for finance;

"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 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

D i r e c t i v e s 2 0 0 2 / 6 5 / E C , 2 0 0 9 / 11 0 / E C a n d 2 0 1 3 / 3 6 / E U an d

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

a r ti c le 4 o f th e Di r e c ti v e ( E U ) 20 15 /2 36 6 o f th e E ur op e a n

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 system" or "system" means a formal arrangement between

three or more participants with common rules and standardised

arrangem ents, f or 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;

"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;

"Statute" means the Protocol on the Statute of the European

System of Central Banks and of the European Central Bank

annexed to the Treaty on the Functioning of the European Union;

"supervisory authority" means the authority responsible for the

supervision and monitoring of credit reference agencies licensed in

accordance with the Trading Licences Regulations;

"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.

PART II

ESTABLISHMENT AND CONDUCT OF AFFAIRS OF BANK

(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 Treaties and shall

participate in carrying out the tasks and complying with the

objectives conferred upon it by the Treaties and the Statute and

shall assume all rights and obligations consequential to such a

status.

(2) The Bank shall be a body corporate having a distinct legal

personality and be capable, subject to the provisions of this Act, of

entering into contracts, of acquiring, holding and disposing of any

property for the purpose of its functions, of suing and of being

sued, and of doing all such things and entering into all such

transactions as are incidental or conducive to the exercise or

performance of its functions under this Act.

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.

(1) In accordance with the Treaties and the Statute, the

functions of the Bank shall include the following

(a) to implement monetary policy;

(b) to hold and manage financial assets;

(c) to ensure the stability of the financial system;

(d) to formulate and implement macro-prudential policy;

(e) to promote a sound and efficient payment system;

(f)

to provide for the circulation of euro banknotes;

(g) to provide for the circulation of euro coins issued for

and on behalf of the Government;

(h) to advise the Government generally on financial and

economic matters;

(i)

to compile and publish statistics as may be necessary

to carry out its tasks.

(2) In accordance with the Treaties 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.

The Bank shall have its principal office in Malta; it may

o p e n o ff i c e s o u t s i d e M a l t a a n d i t m a y a p p o i n t a g e n t s a n d

correspondents.

(1) There shall be a Board of Directors which shall be

responsible for the policy and general administration of the affairs

and business of the Bank, except in relation to the functions

imposed, and the exercise of powers conferred, on the Bank by or

under the Treaties or the Statute.

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

Deputy Governors, and the four other directors appointed under article

8. (1) The Governor and the Deputy Governors shall be

persons of recognised standing and experience in economic,

financial or banking matters and shall each be appointed by the

President of Malta, acting on the advice of the Cabinet of Ministers.

They shall be appointed for a term of five years but shall be eligible

for re-appointment. They shall receive such remuneration as

approved by the Board.

(2)

(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

Treaties and the Statute.

(b) Without prejudice to paragraph (a), the Governor shall

be in charge of the day-to-day management and

operations of the Bank in accordance with the policy

of the Board and shall be answerable to the Board for

his acts and decisions in this respect. The

representation of the Bank in judicial proceedings

shall be vested in the Governor.

(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 sub-article (1);

and the Deputy Governor so designated shall have and may exercise

the powers and perform the functions of the Governor.

(4) The Governor and the Deputy Governors shall devote the

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

while holding that office shall not occupy any other office or

employment whether remunerated or not

Provided that they may be appointed in their capacity as

Governor or Deputy Governors of the Bank, as the case may be, to

sit on any board, commission or committee, by whatever name

called, whether in Malta or outside Malta and provided further that

such activity is not in the opinion of the Board in conflict with the

performance of their duties under this Act.

(5) The Governor and the Deputy Governors 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.

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

exclude the Governor and the Deputy Governors.

(2)

The directors of the Bank, shall -

(a) be appointed by the Prime Minister acting on the advice

of the Cabinet of Ministers;

(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

reappointment;

(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 sub-article, repeated unjustified non-

attendance of Board meetings may deem to amount to

misbehaviour.

(1) A director who is directly or indirectly interested,

otherwise than as a director or in common with other directors, in a

contract made or proposed to be made by the Bank shall disclose

the nature of his interest at the first meeting of the Board at which

he is present after the relevant facts have come to his knowledge.

(2) Any disclosure made under the preceding sub-article shall

be recorded in the minutes of the Board and, after the disclosure,

that director shall withdraw from the meeting while such contract is

discussed or decided on by the Board.

(3) No director shall obtain any credit accommodation from the

Bank during his period of office.

(1) A director may resign his office on giving at least three

months’ notice of his intention in writing to the Prime Minister.

(2) If a director dies, or resigns or otherwise vacates his office

before the expiry of the term for which he has been appointed,

another person shall be appointed in his place, in accordance with

the provisions of article 8 or 9, as the case may require.

(1) Meetings of the Board shall take place as often as may

be required but not less frequently than ten times in each year, and

there shall not be an interval greater than two months between a

meeting of the Board and the next meeting.

(2) Meetings of the Board shall be called by the Governor

either on his own initiative or at the request of any two of the other

directors.

(3) The Governor shall preside as chairman at the meetings of

t h e B o a r d a nd , i n h i s a b s e n c e f r o m a n y m e e t i n g , a D e p u t y

Governor shall preside; and no decision shall be valid which is

taken at a meeting of the Board at which neither the Governor nor

the Deputy Governors are present.

(4) Five members of the Board, one of whom shall be either the

Governor or a Deputy Governor, shall form a quorum at any

meeting.

(5) No act or proceeding of the Board shall be invalidated

merely by reason of the existence of a vacancy or vacancies among

the directors.

(6) Decisions shall be adopted by a simple majority of the

votes of the directors present and voting. The chairman shall have

an initial vote and, in the event of an equality of votes, he shall

have and exercise a casting vote.

(7) All acts done by any person acting in good faith as a

director shall be as valid as if he were a director notwithstanding

that some defect in his appointment or qualification be afterwards

discovered. No act or proceeding of the Board shall be questioned

on the ground of the contravention by a director of the provisions

of article 10(1).

(8) Subject to the provisions of this article, the Board may

regulate its own procedure.

The Board shall establish an Audit Committee to be chaired

by one of the directors who is neither the Governor nor a 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.

The appointment of officials and other employees of the

Bank shall be made by the Board and on such terms and conditions

as may be established by the Board.

(1) The Bank, directors, officers or servants thereof, and

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

under any rules or regulations made thereunder, shall not be liable

i n d amag es f or any thi ng don e o r o mi tt ed t o b e do ne in the

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

any rules or regulations aforesaid, unless the act or omission is

shown to have been done or omitted to be done in bad faith.

(2) The provisions of sub-article (1) shall also apply to the

Bank and to any director, officer or servant thereof and to any other

person appointed by the Bank, in the performance or purported

performance of any function assigned to the Bank or to any

director, officer, servant or other person under any other law.

No salary, fee, wage, allowance or other remuneration paid

by the Bank shall be computed by reference to net or other profits

of the Bank.

(1) In accordance with the Treaties and the Statute, in

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

operations of the Bank shall include the following

(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;

(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;

(c) subscription to, purchasing, selling, discounting or re-

discounting 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) issuing, purchasing, selling, discounting or re-

discounting financial instruments bearing the Bank’s

name in such form and for such terms and maturities as

may be approved by the Board;

(e) granting to any credit or financial institution in Malta

loans and advances against adequate security;

(f)

entering into repurchase and reverse repurchase

agreements; and

(g) when it deems such action necessary to safeguard

financial

stability

or

in

other

exceptional

circumstances, granting a loan or advance to any credit

institution incorporated in Malta against such forms of

security as the Board may consider appropriate.

(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.

(3) In managing and maintaining the financial assets, the Bank

may, in accordance with the guidelines and instructions of the

European Central Bank, carry out any transactions that it deems

suitable, and in particular it may

(a) hold, manage, acquire and sell, spot and forward, all

types of financial assets and precious metals; and

(b) carry out any type of financial transactions with

domestic or foreign institutions or with international

organisations, including borrowing and lending

operations.

(4) The Bank may invest staff and pension funds and other

internal funds of the Bank in financial instruments approved by the

Board.

(5) 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.

(6) Subject to any other provisions of this Act, the Bank may

generally conduct business as a bank, and do all things as are

incidental to or consequential upon the exercise of its powers or the

discharge of its duties under this Act.

(7)

(a) The Bank shall, in the exercise of its functions as a

central bank under this Act, enjoy a special privilege

over any funds held in the accounts of the Bank as well

as any securities, precious metals or any other assets

belonging to its debtors and deposited with it as well

as any other funds or other assets pledged in its favour

by its debtors or by third parties to guarantee the

obligations of its debtors.

(b) The special privilege granted by this sub-article shall

rank before any other privilege under any other law

and notwithstanding the provision of any other law the

funds and other assets subject to such privilege shall

be applied to the satisfaction of the debt due to the

Bank before any other claim.

(c) The Bank may, subsequent to prior notification to the

debtor, apply any such funds or assets in satisfaction

of the debts due to it without the necessity of any

authorisation or sanction by any court or other

authority, and may also, for such purpose, dispose of

any such assets so held by it or pledged in its favour

and apply the proceeds from such disposal directly to

satisfy its claims.

(8) The rights of the Bank of any collateral security provided to

it by a debtor or other counterparty shall not be affected by the

insolvency proceedings against such debtor or counterparty, and

such collateral security may be realised by the Bank in satisfaction

of its rights.

(1) In accordance with the provisions of the Treaties and

the Statue, the Bank may issue, amend or 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.

(1) There shall be a Joint Financial Stability Board which

is a body establ ish ed for the p urpose of ensurin g effecti ve

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.

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.

PART III

FINANCIAL PROVISIONS

(1) The Bank shall have an authorised capital of twenty

million euro which shall be fully paid and shall be held exclusively

by the Government.

(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.

In accordance with article 27 of the Statute, the accounts of

the Bank shall be audited by independent external auditors

appointed by the Board as recommended by the European Central

Bank and approved by the Council of the European Union.

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

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

(2) The Bank shall, as soon as may be but not later than three

months after the close of each financial year of the Bank, transmit

to the Minister -

(a) a copy of the annual accounts certified by the auditors;

and

(b) a report on its operations during that year,

and shall publish the report referred to in paragraph (b).

(3) The Minister shall, as soon as may be and, in respect of the

requirement of paragraph (a) of this sub-article, not later than the

first sitting of the House of Representatives after the seventh day of

April -

(a) cause a copy of the annual accounts and of the report

aforesaid to be laid before the House of

Representatives; and

(b) cause a copy of the annual accounts of the Bank to be

published in the Gazette.

(4) The Bank shall, as soon as may be after the last working

day of each month, make up and publish a return of its assets and

liabilities as at the close of business on that day. A copy of the

return shall be transmitted to the Minister who shall cause it to be

published in the Gazette.

(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.

(1) Subject to the following provisions of this article, the

net profits of the Bank for each financial year shall be determined

by the Bank after meeting all expenditure for that year and after

making such provision as it thinks fit for bad and doubtful debts,

depreciation in assets, contributions to staff and pension funds and

all other reserves and contingencies.

(2) After such allocations as may be determined by the Bank

under the provisions of sub-article (1) have been made, the

remainder of the net profits established as aforesaid shall be paid to

the Government.

PART IV

COLLECTION OF STATISTICAL AND OTHER INFORMATION

(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

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.

(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, 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).

(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 sub-article (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.

(1) There shall be established a Central Credit Register

(hereinafter referred to as "Register") at the Bank with non-

anonymised granular information on actual and contingent exposures

arising from credit and other facilities granted to natural or legal

persons or entities, either resident or non-resident in Malta, to be used

for the following purposes

(a) centralisation of information on credit exposures;

(b) analysis of the stability of the financial system;

(c) implementation of monetary policy;

(d) compilation of statistics; and

(e) facilitating the assessment of credit risk.

(2) The Bank may issue, amend or revoke directives imposing

requirements on credit and other institutions , including the Malta

Development Bank for the purposes of fulfilling its functions under

the Malta Development Bank Act, to provide information in relation to

the Register and setting out the conditions for granting access to the

information held on the Register. The transfer of information into or

from the Register under the conditions laid down by the Bank’s

directives shall not be deemed to be a breach of banking secrecy and

confidentiality obligations under any other law; provided that

institutions and other entities granted access to the information held on

the Register shall ensure that the information is protected against

misuse and remains secret as if it were information on their own

clients.

(3) Borrowers shall have the right to have an extract of the

information kept on them on the Register.

(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.

(5) The Bank may impose fees for information provided or access

granted to the Register to institutions, persons or other entities.

(6) Notwithstanding the provisions of the Malta Statistics

Authority Act, the Bank may require the Director General of the

National Statistics Office to pass to it non-financial information in

possession of or accessible to the National Statistics Office which

is necessary for the Bank in the discharge of its duties in relation to

the Register and the National Statistics Office shall comply with

such request.

(7) The Bank shall forward extracts of the information non-

financial as received under sub-article (6) to authorised officials of

credit and other institutions who are required to use this

information only for the purpose of sub-article (1) to the extent and

at the level of detail necessary for the performance of their duties.

(1)

The Bank shall be the supervisory 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.

PART V

RELATIONS WITH GOVERNMENT

The Bank shall advise the Government generally on

financial and economic matters.

(1) The Bank may act as banker to the Government and

may open accounts for the Government.

(2) The Bank may open accounts for funds, corporations and

institutions controlled by the Government or established by law and

act as banker to any such funds, corporations and institutions.

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

of credit facility to European Union 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.

(2) Government-controlled credit institutions shall be given the

same treatment as other credit institutions with regard to the supply

of reserves.

In accordance with the provisions of this Act and in

conformity with its duties and functions, the Bank may act

generally as agent for the Government.

The Bank shall keep the Minister informed of the policy of

the Bank

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

(c) confidentiality requirements resulting from the Statute

are observed.

PART VI

RELATIONS WITH CREDIT AND FINANCIAL INSTITUTIONS

(1) The Bank may act as banker to credit and financial

institutions in Malta and may open accounts for credit institutions and

financial institutions.

(2)

The Bank may also open accounts with credit institutions.

(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.

(Deleted by Act XIII. 2013.24.)

(Deleted by Act XIII. 2013.25.).

PART VII

PAYMENTS LANDSCAPE

(1) The Bank shall, in accordance with the Treaties and

the Sta tute, overse e and r egulate the operation of, and the

participation in, domestic payment systems as well as any form of

cash or securities transactions, whether domestic or cross-border,

that may be involved therein, and may itself establish and operate

such a payment system.

(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

sub-article (3), and article 56(2) or to any other penalty which may be

imposed under this Act, 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.

(3) Any person who contravenes or fails to comply with the

provisions of sub-article (2) shall be guilty of an offence and shall

be liable on conviction to a fine (multa) not exceeding forty-five

thousand euro or to imprisonment not exceeding two years, or to

both such fine and imprisonment.

(4) No proceedings for an offence under sub-article (3) shall be

commenced without the consent of the Attorney General.

(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

sub-article shall be exercised in accordance with the Treaties, Article

22 of the Statute and any regulations issued thereunder.

(6) Unless otherwise provided in the directives made in virtue

of sub-article (5), payments, set-off or netting made through or

within a payment system including any collateral given by a

participant in connection with any such system, shall,

notwithstanding any other law relating to bankruptcy or insolvency

or to the regulation and enforcement of collateral or otherwise

regulating the validity of such payments, set-off or netting and the

giving of collateral, be final and binding on all parties thereto and

may not be attacked or impugned in any court of law. To the extent

specified by the Bank in directives as aforesaid, any payment order,

set-off or netting made through or within a payment system by a

participant and any collateral given in connection with such a

system shall, notwithstanding any other law as aforesaid, not be the

subject of an attachment or seizure order, nor of a warrant of

prohibitory injunction issued at the request of the creditors of the

participant.

(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.

(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.

(6) 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.

(7) 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 am ending

Regulation (EC) No 924/2009, and shall be responsible to monitor

compliance with this Regulation and take all necessary measures to

ensure such compliance.

Any person who

(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);

(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.

PART VIII

RELATIONS WITH THE COMPETENT AUTHORITY

(1) The Bank may require the competent authority to pass

to it any information in the possession of or accessible to the

competent authority which is necessary for the Bank in the

discharge of its duties under this Act or any other Act.

(2) The Bank may, in writing, request the competent authority

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

the Bank may reasonably require in the exercise of its duties under

this Act or any other Act and the competent authority shall comply

with such request.

(1) The Bank shall pass to the competent authority any

information in the possession of or accessible to the Bank when so

requested by the competent authority in the exercise of its duties

under any law.

(2) The Bank shall discuss with the competent authority

matters of mutual interest resulting from information collected

under article 23, and the promotion of the stable and sustainable

development and provision of the payments landscape in Malta under

article 34A.

Any information exchanged between the Bank and the

competent authority shall be subject to the duty of professional

secrecy.

PART IX

RELATIONS WITH INTERNATIONAL AND OTHER

ORGANISATIONS

In accordance with the Treaties and the Statute, the Bank

may own shares and undertake other participations in international

a n d n a t i o n a l o rg a n i s a t i o n s a n d m a y f u r t h e r p a r t i c i p a t e i n

international monetary agreements to the extent necessary to carry

out its tasks and duties under the law and to fulfil its international

obligations.

The Bank may open accounts and provide banking services

to international and other organisations outside Malta, including to

their representative offices in Malta, as may be necessary to fulfil

Malta’s international obligations.

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, on the basis of international agreements

or upon reciprocity agreements, or otherwise in order to fulfil its

international obligations including in situations of instability in the

fi n a n c i a l s ys te m , d i s c l o s e in f o r m a t io n i n i t s po s s e s s i on to

international and other bodies, authorities and, or organisations,

when this is required to carry out its duties under the law or to fulfil

its international obligations including in situations of instability in

the financial system

Provided that the bodies, authorities and, or institutions

receiving the information are obliged to use such information

solely for such purposes as may be specifically agreed upon with

the Bank

Provided further that the bodies, authorities and, or

institutions to which information is disclosed are subject to

obligations of professional secrecy.

PART X

CURRENCY

The Bank shall issue euro banknotes in accordance with

Article 128 of the Treaty on the Functioning of the European Union

and article 16 of the Statute.

(1) The Bank shall issue euro coins in Malta. In doing so,

the Bank shall act as agent for the Government.

(2) 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 128 of the Treaty on the Functioning of the European Union.

(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 sub-article (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.

For the purposes of the following provisions of this Part, any

reference to the terms "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.

(Deleted by Act XLIX. 2016.4.).

(Deleted by Act XLIX. 2016.4.).

(Deleted by Act XLIX. 2016.4.).

(Deleted by Act XLIX. 2016.4.).

(Deleted by Act XLIX. 2016.4.).

(1) Notwithstanding the provisions of any other law, a

person who is in possession of any counterfeit currency note or

coin shall be obliged to withdraw from circulation such currency

notes or coins which that person knows or has sufficient reason to

believe to be counterfeit, and shall immediately deliver it over to

the Bank.

(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.

(3) Any currency note or coin which the Bank, after

examination, has determined to be counterfeit may be destroyed or

otherwise disposed of in such manner and under such conditions as

the Bank may determine.

(4) Where a cash handler as referred to in sub-article (2), or

any other person delivers counterfeit currency notes or coins to the

Bank in accordance with sub-article (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.

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 generalit y of the

a f o r e s a i d , t h e B a n k m ay, i n a n y s u c h d i r e c t i v e s , l a y do w n

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.

Notwithstanding anything contained in the foregoing

articles, under duly warranted circumstances the Bank may, 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.

(Deleted by Act XLIX. 2016.4.).

(Deleted by Act XLIX. 2016.4.).

There shall be a unit within the Bank which shall have sole

responsibility in Malta to analyse suspected counterfeit euro

banknotes and euro coins in accordance with Council Regulation

(EC) No 1338/2001 of 28 June 2001 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.

(Deleted by Act XLIX. 2016.4.).

PART XI

GENERAL

(1) Without prejudice to the Treaties and the Statute and

any legal acts issued thereunder, and to the provisions of article 34(3)

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 or entity contravenes or fails to comply

with a requirement contained in any directive issued

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

(b) where a person or entity contravenes or fails to comply

with a reporting requirement under the provisions of

articles 23 or 24, 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) 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

(e) 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.

(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).

(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.

(2) Where an administrative penalty is imposed on a person or

entity in respect of a breach of the provisions referred to in article

56(b), such penalty shall be without prejudice to the obligation of

the undertaking to meet the costs of the verification and, or, the

compulsory collection procedure, as the case may be.

(3) Where a notice imposing an administrative penalty is

served on any person or entity and

(a) such person or entity does not appeal to the Financial

Services Tribunal (hereinafter in this article ''the

Tribunal'') in accordance with the provisions of article

35 and fails to pay to the Bank the administrative

penalty within thirty days from the date of service of

such notice; or

(b) such person or entity appeals to the Tribunal and fails

to pay to the Bank the administrative penalty as

confirmed or reduced by the Tribunal within fifteen

days from the date of the decision of the Tribunal,

then, in each case, the Bank shall be entitled to recover the sum due

as a civil debt and the provisions of sub-article (4) shall apply.

(4) A notice as is referred to in sub-article (3) or, as the case

may be, the decision of the Tribunal shall, upon the service of a

copy thereof by means of a judicial act on the person indicated in

the notice or the decision of the Tribunal, constitute an executive

title for all effects and purposes of Title VII of Part I of Book

Second of the Code of Organization and Civil Procedure.

The Board may make bye-laws not inconsistent with this

Act, for the good order and management of the Bank.

The Bank shall be exempt from any liability for the

payment of income tax and duty on documents and transfers under

any law for the time being in force.

(1) The Minister

may,

by

regulations,

amend

the

Schedules to this Act.

(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.

(1) The Bank may issue, amend or revoke directives as

may be required for carrying into effect any of the provisions of

this Act, the Treaties and the Statute.

(2) Directives issued by the Bank may be in the English

language only.

(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.

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 Treaties 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 Treaties and without charge.

(2) No person shall be entitled to redeem from the Bank the

val ue o f an y lo s t, sto len , m u ti la te d o r i mp e r f e c t co in . Th e

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.