Trading Licences (Amendment) Regulations, 2020

L.N. 261 of 2020

TRADING LICENCES ACT

(CAP. 441)

Trading Licences (Amendment) Regulations, 2020

IN EXERCISE of the powers conferred by article 17 of the

Trading Licences Act, the Minister for the Economy, Investment and

Small Businesses, has made the following regulations:-

The title of these regulations is the Trading Licences Citation.

(Amendment) Regulations, 2020 and these regulations shall be read

and construed as one with the Trading Licences Regulations, S.L. 441.07.

hereinafter referred to as "the principal regulations".

In the Arrangement of regulations, the words "Part VIII Amends

Offences and Penalties 48 - 50" shall be substituted by the words "Part Arrangement

regulations.

VIII Dealers in Precious Metals and Stones Obligation licensing of

dealers 48 - 57" and immediately under it there shall be added the

words "Part IX Offences and Penalties 58 - 60".

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a) immediately after the definition "bank" there shall be

added the following new definition

" "beneficial owner" shall have the same

meaning as assigned to it under the Prevention of

Money Laundering and Funding of Terrorism

Regulations;";

(b) immediately after the definition "Central Credit

Register" there shall be added the following new definition

" "commercial partnership" shall have the same

meaning as assigned to it under the Companies Act and

shall include a company formed and registered under the

Companies Act;";

(c) immediately after the definition "date of the ceasing

of operations" there shall be added the following new definition

" "dealer in precious metals and stones" means any

person who conducts the following operations

(a) manufacture of jewellery and related

articles where related articles in this case consists of;

(i)

production of worked pearls;

(ii) production of precious and semi-

precious stones in the worked state, including

the working of industrial quality stones and

synthetic or reconstructed precious or semi-

precious stones;

(iii) working of diamonds;

(iv) manufacture of jewellery of

precious metal or of base metals clad with

precious metals, or precious or semi-precious

stones, or of combinations of precious metal

and precious or semi-precious stones or of other

materials;

(v) manufacture of goldsmiths’ articles

of precious metals or of base metals clad with

precious metals including articles for religious

use;

(vi) manufacture of technical or

laboratory articles of precious metal (except

instruments and parts thereof): crucibles,

spatulas, electroplating anodes etc.

(vii) manufacture of precious metal

watch bands, wristbands, watch straps and

cigarette cases;

(b)

precious metals production;

(c) retail sale of watches and jewellery,

precious stones and precious metals in specialised

stores where the main line of activity is the selling of

watches, jewellery, precious stones and/or precious

metals;

(d) retail sale of watches and jewellery,

precious stones and precious metals in stores where

the main line of activity is not the selling of watches

and jewellery;

(e)

wholesale of watches and jewellery;

(f)

wholesale of gold and other precious

metals;

(g)

wholesale of precious stones.";

(c) immediately after the definition "Farmers’ Market"

there shall be added the following new definition

" ''Financial Intelligence Analysis Unit''

shall have the same meaning as assigned to it

in the Prevention of Money Laundering Act;";

(d) immediately after the definition "personal data" there

shall be added the following new definition

" "police certificate" means a comprehensive police

certificate or statement, issued by a national law

enforcement authority or other public authority in charge of

criminal records, on the status of an applicant’s criminal

record;".

Immediately after Part VIIB of the principal regulations Adds new Part

there shall be added the following new Part

"PART VIII

Dealers in Precious Metals and Stones

48. Without prejudice to regulation 9 and to

any other licence or authorization needed under any

other law, no person shall carry on the business of a

dealer in precious metals and stones after 1st

January 2021 unless he is the holder of a licence

issued under these regulations

Provided that any person who was

registered with the VAT department up to and

including 1st January, 2021 as performing any of

the operations listed under the definition of dealer

in precious metals and stones under these

regulations

(a) may continue to do so until said

date without the need of a trading licence;

(b) shall be deemed to have been

issued a licence as from 1 st January 2021

unless that person had informed the Trade

Licensing Unit that he is not willing to be so

deemed and that he will not be continuing

operating as a dealer;

(c) shall be deemed to have given

consent to have a licence number, the name of

the licence holder and the nature of the

commercial activity published as per

regulation 12;

(d) shall be bound by the conditions of

these regulations as from 1 st January 2021.

49. (1) An application for a trading

licence in order to carry out the business of a dealer

in precious metals and stones shall be made to the

Trade Licensing Unit on the appropriate form

which shall inter alia include the following

information

(a) an indication whether the applicant

is a sole trader or a commercial partnership;

(b) the address of the applicant’s head

office and the principal place of business if

applicable;

(c) the names of the persons who

effectively direct the business and operations

and in the case of sole traders also the names

of the owners;

(d) the business activity in respect of

which the application is being applied for.

(2) Where the business is a commercial

partnership the form shall also include

(a) the official full name and

registration number of the commercial

partnership;

(b) the date of incorporation or

registration of the commercial partnership;

(c) the registered address or principal

place of business of the commercial

partnership;

(d) the names and identity reference

numbers of all directors, partners, the

company secretary and beneficial owners of

the commercial partnership.

(3) The application shall be accompanied by

the following documents

(a) a police certificate, issued not

more than one (1) month before the date of

filing of the application, of the persons who

effectively direct the business, of the owner or

owners of the business and as applicable of all

directors, partners, the company secretary and

beneficial owners; and

(b) a document issued by the statutory

auditors or audit firms responsible to carry out

the audit of the operation in question

indicating such responsibility.

(4) Without prejudice to the above sub-

regulations, the Trade Licensing Unit may require

the applicant to submit further documentation and

information.

(5) An application form shall not be deemed

to be complete unless the Trade Licensing Unit is in

receipt of all the documentation required to be

submitted together with the application form.

50. For a person to be eligible for a licence

under this Part, that person must

(a) be over eighteen (18) years old;

(b) not have been convicted by any

competent court or tribunal in or outside

Malta, of any offence punishable by

deprivation of liberty or a detention order for

a maximum of more than one (1) year or, in

the case of jurisdictions that have a minimum

threshold for offences in their legal systems,

any offence punishable by deprivation of

liberty or a detention order for a minimum of

more than six (6) months, other than

involuntary homicide or other crime against

the person excusable in terms of the Criminal

Code; and

(c) is, in the opinion of the Trade

Licensing Unit, a fit and proper person to

carry on the business of a dealer in precious

metals and stone, after the Trade Licensing

Unit considered the person’s conduct and

repute, and the interests of the public

Provided that for a commercial

partnership to be eligible for a licence under these

regulations, the directors, partners, secretary and

beneficial owners must satisfy the eligibility criteria

under paragraphs (b) and (c).

51. (1) The Trade Licensing Unit shall,

without delay, acknowledge receipt of an

application and receipt of the applicable licence fee

in writing to the applicant and shall specify the

procedure under which a refusal by the Trade

Licensing Unit to grant a licence may be appealed

in terms of the Act and regulations.

(2) The Trade Licensing Unit shall within

three (3) working days from the date of receipt of

the application form with all the obligatory

information and the accompanying documents,

forward relevant details which may include copy of

application forms and accompanying documents to

any entity it deems fit, for assessment and opinion.

(3) Without prejudice to regulation 49, the

Trade Licensing Unit, may at any time before it

takes a decision on the issuance of a licence, require

the applicant to submit further documentation and

information.

(4) An entity contacted by the Trade

Licensing Unit for opinion and assessment shall,

provide all information requested to the Trade

Licensing Unit within twenty (20) working days

from the date of receipt of a complete application

Provided that during the twenty (20)

working day period, the said entity may require

further clarifications, additional information and

documentation in which case the twenty (20)

working days shall run from when said information

and documentation is provided to said entity

Provided further that the twenty (20)

working day period may at upon request of the

entity be extended for one period of not more than

twenty (20) working days. Such extension shall be

notified to the Trade Licensing Unit before the

expiry of the first twenty (20) day period.

(5) If the entity contacted by the Trade

Licensing Unit for opinion and assessment does not

reply within the periods a stipulated above, it will

be deemed to have no relevant information or

advice in relation to the application of a dealer.

(6) The Trade Licensing Unit may

(a)

issue the licence subject to any

conditions it may deem fit; or

(b) refuse the application for a licence

Provided that when any licences are

issued subject to conditions, all such conditions

shall be specified in writing and shall form an

integral part of the licence.

(7) The Trade Licensing Unit may from

time to time, vary or revoke any conditions so

imposed or may impose new conditions

Provided that the Trade Licensing Unit

before varying or revoking any conditions or

adding new ones shall notify the licence holder of

its intention and request him to make any

submissions within twenty (20) working days

Provided further that after said period of

twenty (20) days, the Trade Licensing Unit shall

decide whether or not to proceed with its intended

action taking into consideration any submissions it

may have received from the licence holder.

(8) The provisions in sub-regulation (6)

shall apply in case of renewals of a licence.

(9) If a licence is issued, it is to be issued by

reference to the applicable code issued by the Trade

Licensing Unit

(a) in the name of the owner or

owners of the business listed in the application

form where the business is not owned by

company;

(b) in the name of the commercial

partnership where the business is to be carried

out by a commercial partnership

Provided that a licence once so issued is

non-transferable.

52. (1) The Trade Licensing Unit shall

refuse the application or a renewal of licence if it is

not satisfied that the person on whom the trading

licence or renewal thereof is to be issued and,

where that person is a commercial partnership, the

directors, partners, company secretary and

beneficial owners thereof fulfil the eligibility

criteria envisaged under regulation 50.

(2) The Trade Licensing Unit may also

refuse the application on the basis of other matters

or non compliance with other requirements which

may be considered necessary in the particular

circumstances.

(3) A decision to refuse the issue of a

licence shall be accompanied with the reasons for

such refusal

Provided that for reasons of public

safety and public security, the Trade Licensing Unit

may not give any reasons for refusal.

(4) Any applicant who feels aggrieved by a

decision of the Trade Licensing Unit may file an

appeal to the Licensing Appeals Board in

accordance with the Act and relevant provisions of

the regulations.

53. (1) An application shall be deemed to

be invalid

(a) when it does not contain the name

and contact details of the applicant;

(b) when it does not include, or is not

accompanied by the information and

documentation

envisaged

under

sub-

regulations (1) to (3) of regulation 49;

(c) when the applicant does not within

sixty (60) working days provide any requested

information or documents to the Trade

Licensing Unit

Provided that before the expiry of the

sixty (60) working days, an applicant may request

an extension for another sixty (60) days.

(2) When an extension is requested by the

applicant, the application shall be deemed invalid

after the expiry of the extended period of sixty (60)

days.

54. Without prejudice to sub-regulation (6)

of regulation 9, a licence to carry out the business

of dealer under this Part shall be deemed null ab

initio if the pre-requisites of regulations 49, 50 and

52 were not met by the applicant.

55. (1) A licence may be cancelled under

this Part by the Trade Licensing Unit

(a) where it becomes aware of proof

of dissolution of the business operation in

respect of which the licence was issued; or

(b) at the request of the person on

whom the licence was issued or at the request

of a person authorised to so act on its behalf.

Such request shall be made on the appropriate

form.

(2) The effective date of cancellation in the

case of dissolution shall be the day following the

date of dissolution of the business operation in

question.

(3) Without prejudice to sub-regulation (1),

a licence to carry out the business of a dealer in

precious metals and stones may be suspended or

cancelled by the Trade Licensing Unit

(a) when the commercial activity does

not commence the operation pursuant to the

licence within twelve (12) months of its issue,

or has ceased its operations for more than six

(6) months; or

(b) when the commercial activity no

longer fulfils the conditions for the granting of

a licence including the eligibility criteria

envisaged under regulation 50; or

(c) if in the opinion of the Trade

Licensing Unit, the manner in which the

commercial activity is conducted, is in breach

of any legal obligations; or

(d) where the Trade Licensing Unit is

informed by the Financial Intelligence

Analysis Unit that a licensed dealer in

precious metals or stones has seriously,

repeatedly or systematically failed to satisfy

its obligations under the Prevention of Money

Laundering Act or the Prevention of Money

Laundering and Funding of Terrorism

Regulations; or

(e) if any director, partner, company

secretary, or beneficial owner of a licensed

dealer in precious metals and stones has been

found guilty of irregularity or misconduct.

(4) In the event that a licence is suspended

or cancelled, no refund of fees will be affected by

Trade Licensing Unit.

(5) The Trade Licensing Unit, may lift a

suspension subject to the

(a) the removal of any director,

manager, or partner; or

(b) provision of proof of compliance

with any obligation or restriction imposed.

(6) A dealer in precious metals or stones

which has his licence suspended or cancelled shall

cease to act in that capacity from the date on which

the suspension or cancellation takes effect

Provided that the suspension shall cease

to have effect from the date when the Trade

Licensing Unit notifies the dealer in writing that it

is satisfied that the dealer has abided with the

obligations or restrictions imposed.

(7) The Trade Licensing Unit shall publish a

notice of suspension or cancellation of a licence and

a notice of the lifting of a suspension of a licence on

its website.

56. (1) A licence to carry out the business

of a dealer in precious metals and stones shall be

renewable every three (3) years upon a submission

by said dealer for renewal

Provided that in the case of those

Dealers in Precious Metals and Stones who are

deemed to have been licensed as from 1 st January

2021, in terms of regulation 48, may at any time

after January 2021 be required by the Trade

Licensing Unit to provide it with all the details and

documentation which must be provided when

applying for a new licence

Provided further that if the Trade

Licensing Unit considers that the dealer is not in

compliance with the eligibility criteria envisaged

under regulation 50, the Trade Licensing Unit shall

cancel or suspend the licence as it deems

appropriate.

(2) An application for the renewal of a

licence may be made to the Trade Licensing Unit

not earlier than three (3) months preceding the date

of the expiry of the licence.

(3) A dealer may not continue operating as a

dealer unless he submits an application for renewal

and the licence is renewed.

57. In the case of a commercial partnership

the dealer shall when there is any change in to the

composition of directors, partners or beneficial

owners, inform the Trade Licensing Unit within

thirty (30) working days of such change.".

Part VIII of the principal regulations shall be amended as Amends Part

(a) the title thereof shall be substituted by the words

"PART IX"; and

(b) regulations 48, 49 and 50 thereof shall be renumbered

as regulations 58, 59 and 60 respectively.

In Part I of the First Schedule to the principal regulations, Amends Part I

the words "36.2 Manufacture of jewellery and related articles" shall be of

In Part II of the First Schedule to the principal regulations, Amends Part II

immediately under the word "Auctioneer" there shall be added the of

"24.41Precious metals production

12Manufacture of jewellery and related articles

48Wholesale of watches and jewellery

46.72Wholesale of gold and other precious metals

46.76Wholesale of precious stones

19Retail sale of watches, jewellery, precious stones and

metals in non-specialised stores where the main line of activity is

not the selling of watches and jewellery example departmental

47.77Retail sale of watches, jewellery, precious stones and/

or precious metals in specialised stores where the main line of

activity is the selling of watches, jewellery, precious stones and/

or precious metals".

€1.08