Investment Registration Scheme Regulations, 2005

L.N. 121 of 2005

EXTERNAL TRANSACTIONS ACT

(CAP. 233)

Investment Registration Scheme Regulations, 2005

IN exercise of the powers conferred by article 11(2) of the External

Transactions Act (hereinafter referred to as “the Act”), the Prime

Minister and Minister of Finance has made the following regulations>-

(1) The title of these regulations is the Investment Citation,

commencement

Registration Scheme Regulations, 2005.

and scope.

(2) The scope of these regulations is to provide for the

establishment of a registration scheme to be known as the Investment

Registration Scheme, hereinafter referred to as the Scheme, whereby

residents of Malta who hold assets outside Malta without the necessary

exchange control permits and#or, without declaring the relevant income

(including capital gains) for the purposes of the Income Tax Act, may Cap. 123.

regularise their position under the Act, the Income Tax Act and other

relevant laws.

(in Lm)

value

E

Registration Certificate

Section 1 (please use additional prescribed fo4rms if space is not sufficient)

Section 1 (please use additional prescribed forms if space is not sufficient)

(foreign currency)

Registered Assets

At market value

(1) In these regulations, unless the context otherwise requires – Interpretation .

“applicable date” means>

(a) in respect of assets referred to in regulation 6 (a),

any date between 1 January, 2000 and 30 March, 2005, and

(b) in respect of assets referred to in regulation 6 (b)

and 6 (c), any date between 31 March 2005 and 16 June,

2005<

“eligible assets” means deposits as defined in the Banking Cap. 371.

Act, securities including shares and stock in the capital of a

company, debentures, certificates of deposit, bonds, notes and any

other similar instrument acknowledging indebtedness< units in a

collective investment scheme, life and annuity long term insurance

policies, whether index-linked or not< precious metal bullion<

warrants, options, futures and other derivatives as well as any other

financial instruments entered into for investment purposes< loans

to a non-resident company< and immovable property situated

outside Malta<

“loans to a non-resident company” mean, for the purposes of

these regulations, funds advanced by a Maltese resident to a non-

resident company which he owns in part or in whole and which

has as its sole object the investment of funds for portfolio purposes.

(2) The words and expressions which are also used in the

Act or the Income Tax Act shall have the same meaning as in these

Acts.

(3) For the purposes of these regulations, the following shall

be treated as if they were eligible assets held outside Malta>

(a) foreign currency deposits held with credit institutions

licensed under the Banking Act<

(b) investments in a non-prescribed fund of a Malta-based

Scheme as defined in regulation 5(2) of the Collective Investment

Schemes (Investment Income) Regulations, 2001< and

(c) investments in any long-term policy of assurance,

whether index-linked or not, as specified in Classes I to VI listed

in the Second Schedule to the Insurance Business Act, expressed

in foreign currency and issued by an insurer lawfully carrying on

in Malta long-term business of insurance.

(4) For the purposes of these regulations, any income arising

from eligible assets which is received after 31 March 2005 and reinvested

outside Malta before the date of registration, shall be deemed to

constitute eligible assets existing on 31 March 2005 and shall be eligible

for registration under these regulations.

of the Income Tax Act.

D

13 Please indicate the Certificate Number (s) of the additional form(s) used if any

15 Total Value of All Assets being hereby registered (Sum of Rows 12 and 14)

Total Value of the Assets listed above

nominal terms

Amount in

C

14 Total Value of Assets listed in additional forms if any

Currency

B

A

Asset

Type

of

(Regulation 3)

I have read and understood the declaration in Section 4 overleaf. I confirm that on the applicable date I was the owner of these assets/heir or legatee of the owner

Letters)

Letters)

Date

Date

Official

Stamp

Commission

Date

(Lm)

(Block

Heir/legatee

Heir/legatee

(Block

Date

I confirm having received the Registration Fee detailed above

Signature

Signature

Signature

Section 3: To be completed by Appointed Registration Agent (See Declaration in Section 5 overleaf)

Owner

Owner

Registration Fee

at 5%

(Lm)

*If beneficial owner/fiduciary is a body corporate, please insert company name and company registration number

(1) Residents of Malta who own eligible assets outside Malta

may regularise their position under the Act and, or, the Income Tax Act

and, or, other relevant laws, by registering such assets under the Scheme

on the prescribed form as set out in the First Schedule to these

regulations.

(2) Eligible assets shall be registered under the Scheme by

the person who owns such assets outside Malta on the applicable date,

or by the heir or legatee of such person when such heir or legatee

becomes the owner of eligible assets after their repatriation.

The Scheme shall run until 16 June, 2005.

4.

Authorised Signature

Registered Assets

Market Value of

(Lm)

Owner

Address

Address

Address

Owner

as Beneficial

as Beneficial

ID card No *

ID Card No*

ID Card No*

Official

Stamp

* Complete details when not included on official stamp

by Applicant

pleted by Applicant

Title (Mr/Mrs/Ms) * Full name and surname *

Title (Mr/Mrs/Ms) * Full name and surname *

of these assets (please tick as applicable)

Name of Appointed Registration Agent *

Name of Fiduciary (where applicable) *

Section 2: To be completed

Authorised Signature

1.

2.

3. Section 4: Applicant’s Declaration

In completing Section 2, I/ we declare

1. to be the owner/joint beneficial owner(s) of the registered assets or the heir or legatee of the owner;

2. that the registered assets were (a) held outside Malta and owned by me/us on or after 1 January 2000 and

repatriated to Malta prior to 16 June 2005 and/or (b) held abroad and owned by me/us on 31 March 2005;

3. that these assets are being registered only once under this Investment Registration Scheme and that these

assets have not already been registered in any form under the Investment Registration Schemes

established by virtue of Legal Notice 315 of 2001 and Legal Notice 59 of 2002, Legal Notice 209 of

2003, and Legal Notice 226 of 2003;

4. that the registered assets do not represent proceeds from a crime of money laundering in terms of the

Prevention of Money Laundering Act, or from a crime that would result due to an infringement of any

law other than the Exchange Control Act or the Income Tax Act;

5. that the documentary evidence being hereby submitted to the Appointed Registration Agent in support of

the registered assets is true and original;

6. that I/we accept full responsibility for the accuracy and authenticity of the information and of the

documentary evidence submitted to the Appointed Registration Agent under the Scheme;

7. that I/we will make available to the Appointed Registration Agent any further information, statements or

documents that it may require for the proper exercise of its functions in terms of the Investment

Registration Scheme;

8. that the declaration is being made in good faith;

9. that in return for my/our making this declaration and obtaining the relevant exemptions arising from law

upon registration, I/we hereby pay the registration fee in Maltese liri on the market value of the eligible

assets as per Column E Row 15 in Section 1;

10. I/we understand that the submission of false statements and documents will nullify this Certificate and

render me/us liable to legal prosecution;

11. I/we also understand that in the event that I/we am/are receiving any benefit, exemption or other

advantage under the Social Security Act or under any other scheme made by the Government or any

public entity or under any other law, as a result of not having declared the eligible assets being hereby

registered (or income therefrom), I/we shall not be required to refund that benefit, exemption or other

advantage acquired before this declaration. However, if after this registration, I/we continue to take that

benefit, exemption or advantage without being entitled thereto, I/we shall be considered as never having

enjoyed exemptions referred to in article 11 of the External Transactions Act and article 9B of the

Income Tax Act, and shall forfeit the right not to refund any benefit, exemption or advantage acquired

before the Registration.

Section 5: Appointed Registration Agent’s Declaration

In completing Section 3, we declare

1. that

we have

obtained

the necessary

information,

— Valletta — statements

Published by the and

documents

required

for

the proper

Ippubblikat

mid-Dipartiment

ta’ l-Informazzjoni

(doi.gov.mt)

Department

of Information

(doi.gov.mt)

— Valletta

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

exercise of our function under the Scheme;

2. that we have retained copies of supporting documentary evidence as necessary and undertake to continue

retaining such documentation for 10 years;

3. that we are bound by law by the duty of professional secrecy and will not disclose any information

contained in the Registration Certificate.

L-Iskema g[andha tibqa’ g[addejja sas-16 ta’ :unju 2005.

L-Iskema tibqa’

sse[[ sas-16 ta’

:unju 2005.

Registration of eligible assets shall be executed through the Registration

Appointed Registration Agents which shall be credit institutions licensed through

in Malta under the Banking Act, stockbrokers licensed under the Appointed

Agents.

Investment Services Act, and persons holding a category 2 or category

3 Investment Services Licence granted under the Investment Services Cap. 371.

Act, and in each case appointed as Registration Agents by the Central Cap. 370.

Bank of Malta.

Registration of eligible assets under this Scheme shall be open Assets which

may be

to>

registered.

(a) eligible assets which were held outside Malta on or after

1 January, 2000 and which were repatriated to Malta prior to 31

March, 2005<

(b) eligible assets which were held outside Malta on 31

March 2005 and which are repatriated to Malta prior to 16 June,

2005<

(c) eligible assets which were held outside Malta on 31

March 2005 and which are retained overseas.

(1) In the case of eligible assets which are repatriated to Documentary

Malta, the Appointed Registration Agent shall only register such assets evidence.

against the submission by the applicant of original documentary

evidence>

(a) confirming that such assets were held outside Malta

between 1 January, 2000 and 30 March 2005 in the case of assets

referred to in regulation 6(a), or on 31 March 2005 in all other

cases< and

(b) confirming repatriation during the Scheme’s operation

period.

(2) In the case of eligible assets which are to be retained

abroad, the Appointed Registration Agent shall only register such assets

against the submission by the applicant of original documentary evidence

confirming that such assets were held outside Malta on 31 March 2005.

(3) The documentary evidence referred to in subregulations

(1) and (2) hereof shall be>

(a) in the case of precious metal bullion, a confirmation from

the licensed institution with which the precious metal bullion is held<

(b) in the case of immovable property situated outside Malta,

a duly authenticated copy of the original contract by virtue of which

the property was purchased and a confirmation from a duly

qualified person<

(c) in the case of loans to a non-resident company which

has as its sole object the investment of funds for portfolio purposes,

a duly authenticated copy of the agreement by virtue of which

funds were advanced by a Maltese resident to such non-resident

company<

(d) in the case of all other eligible assets which are not

referred to in paragraphs (a), (b) and (c) above , a confirmation

from a licensed financial intermediary outside Malta<

(e) such other documentary evidence which may be declared

sufficient by the Central Bank of Malta in writing on a case by

case basis<

(f) where eligible assets are held by a third party in a

fiduciary capacity, the applicant shall also submit to the Appointed

Registration Agent>

(i) where the fiduciary is regulated and licensed in

Malta or in a foreign jurisdiction, evidence that such fiduciary

is in fact so regulated or licensed< or

(ii) where the fiduciary is not licensed or regulated, a

confirmation, bearing the fiduciary’s original signature and

witnessed by a Notary Public or a Commissioner of Oaths,

evidencing that such fiduciary held eligible assets on behalf

of the applicant< and

(g) where eligible assets are repatriated to Malta, the

confirmation required by subregulation (1)(b) hereof shall be

provided by a local licensed financial intermediary.

(4) Where eligible assets which may be registered under

the Scheme have been switched by the applicant into other foreign assets

during the period between 31 March 2005 and the registration date, the

applicant is to provide documentary evidence of such switches as may

be required by the Registration Agent.

(5) Copies of the original documentary evidence specified

in subregulations (1), (2), (3) and (4) hereof are to be retained by the

Appointed Registration Agent, in printed or electronic form, for record

purposes for a period of ten years.

(1) A person who registers eligible assets under the Scheme Declaration

shall sign a Declaration which is to be provided by the Appointed to be signed.

Registration Agent, stating that>

(a) such person is the beneficial owner of the assets being

registered<

(b) such person accepts full responsibility for the accuracy

and authenticity of the information and documentary evidence

provided to the Appointed Registration Agent<

(c) such person undertakes to make available to the

Appointed Registration Agent any further information that may

be required by the Agent for the proper exercise of its functions in

this regard<

(d) the documentary evidence being submitted to the

Appointed Registration Agent in terms of subregulations 7 (1), (2)

(3) and (4) hereof is the true original documentation<

(e) the registered eligible assets do not represent proceeds

from>

(i) a crime of money laundering under the Prevention Cap. 373.

of Money Laundering Act, or

(ii) any of the crimes listed in the Second Schedule to

the Prevention of Money Laundering Act other than a crime Cap. 373.

against the Act or the Income Tax Act, or

(iii) any offence against any other law<

(f) the registered assets were held outside Malta between 1

January, 2000 and 30 March 2005 in the case of assets referred to

in regulation 6(a), or on 31 March 2005 in all other cases<

(g) the registered assets have only been registered once

under the Scheme<

(h) the declaration is being given in good faith.

(2) The Declaration shall also include>

(a) a detailed description of the eligible assets being

registered and details thereof<

(b) details of the beneficial owners including full name,

identity card number, address and signature< and details of the

fiduciary where eligible assets are held by a third party<

(c) details of the Appointed Registration Agent.

(1) The Appointed Registration Agent, after having duly

completed the declaration modalities, shall issue a Registration

Certificate. The Certificate shall be sequentially and uniquely numbered

and in controlled stationery.

(2) The Registration Certificate shall be issued to the

applicant against the payment of a registration fee as specified in

regulation 10 hereof.

(3) The Registration Certificate shall be issued by the

Appointed Registration Agent in triplicate> one copy shall be provided

to the applicant, one copy is to be retained by the Appointed Registration

Agent, and one copy is to be provided to the Appointed Central

Registration Certificate Depository. The Central Bank of Malta is, by

means of these regulations, being appointed the Central Registration

Certificate Depository.

(4) Every person, including past and present officers or

agents of an Appointed Registration Agent or of the Appointed Central

Registration Certificate Depository, shall be bound by the duty of

professional secrecy in the exercise of his functions under these

regulations and shall not disclose any information contained in the

Registration Certificate which may come in his possession in the exercise

of his functions under these regulations.

(5) Upon registration, the beneficial owner of the eligible

assets registered under this Scheme shall be entitled to the exemptions

referred to in article 11 of the Act and article 9B of the Income Tax

Act.

(6) The submission by the applicant of false statements and

documents shall nullify the Certificate and render the applicant ineligible

to the benefits granted under the Scheme.

(7) The Registration Certificate is strictly non-transferable.

(8) In the event of the loss or destruction of the Registration

Certificate, the applicant may make a request in writing to the Central

Registration Certificate Depository for the issue of a copy of the lost or

destroyed certificate.

(1) The issue of a Registration Certificate is subject to the Registration

payment by the applicant of a registration fee payable to the Government. fee.

Such fee is equivalent to five per centum of the market value of the

registered eligible assets, calculated on the basis of a valuation by a

duly qualified person made within the preceding three months and

presented to the Appointed Registration Agent.

(2) The registration fees paid by registered applicants are to

be remitted by the Appointed Registration Agent to the Government at

a designated account at the Central Bank of Malta by not later than

seven days after the end of the month during which the fees are collected.

(3) The Appointed Registration Agent shall issue a receipt,

which is an integral part of the Registration form, to the applicant in

respect of the registration fee paid.

(4) The triplicate copies of all the Registration Certificates

issued by the Appointed Registration Agent during the month are to be

sent to the Central Depository at the Central Bank of Malta within seven

days after the end of that month.

The Appointed Registration Agent is entitled to recover a Fee for services

fee for services rendered to effect registration. Such fee shall be deducted rendered.

from the Registration fee paid in respect of the issue of the Registration

Certificate. Such fee shall be equivalent to five per centum of the

Registration fee, provided that it shall not be less than Lm10 or more

than Lm125 per application registered. No service fee is to be charged

by an Appointed Registration Agent which is a credit institution where

funds are repatriated and placed with that credit institution in a deposit

account fixed for one year or over.

Holders of a Registration Certificate who convert their Holders to

registered eligible assets into other assets shall, after registration, retain retain

documentary

the documentary evidence regarding such conversions.

evidence.

Amount retained abroad Amount repatriated on or

entitles the registered beneficial owner of the said assets to the exemptions referred to in article 11 of the External Transactions Act and article 9B

repatriated to Malta prior to 16 June 2005 and/or (b) held outside Malta as at 31 March 2005 and still retained overseas, as detailed hereunder. It

before registration (at

market value in Lm)

This Certificate is issued in respect of the registration of the eligible assets which were (a) held outside Malta on or after 1 January 2000 and

STRICTLY NOT TRANSFERABLE

G

(Block Letters)

(Block Letters)

(at market value in Lm)

F

Issued for the purposes of the Investment Registration Scheme

At market