Financial Institutions Act (Safeguarding of Funds)

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 21,417, 4 ta’ April, 2025 B 595

L.N. 67 of 2025

FINANCIAL INSTITUTIONS ACT

(CAP. 376)

Financial Institutions Act (Safeguarding of Funds)

(Amendment) Regulations, 2025

IN EXERCISE of the powers conferred by article 12 of the

Financial Institutions Act, the Minister responsible for the regulation

of financial services, acting on the advice of the Malta Financial

Services Authority, has made the following regulations:-

(1) The title of these regulations is the Financial Citation and

Institutions Act (Safeguarding of Funds) (Amendment) Regulations, scope.

2025 and these regulations shall be read and construed as one with the

Financial Institutions Act (Safeguarding of Funds) Regulations, S.L. 376.04.

hereinafter referred to as the "principal regulations".

(2) The scope of these regulations is to transpose the

provisions of Article 3(1) of Regulation (EU) 2024/886 of the

European Parliament and of the Council of 13 March 2024 amending

Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives

98/26/EC and (EU) 2015/2366 as regards instant credit transfers in

euro and they shall be interpreted and applied accordingly.

Regulation 7 of the principal regulations shall be amended Amends

regulation 7 of

as follows

the principal

regulations.

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

substituted by the following new paragraph

"(a) funds shall not be commingled at any time with

the funds of any natural or legal person, other than payment

service users on whose behalf the funds are held. Where the

funds of payment service users are held in a common

account, the funds belonging to each payment service user

shall be identifiable at all times. Where funds are still held

by the payment institution and not yet delivered to the

payee or transferred to another payment service provider by

the end of the business day following the day when the

funds have been received, they shall be deposited in a

separate account in a credit institution or in a central bank

at the discretion of such central bank, or invested in secure

liquid low-risk assets, as defined in sub-regulation (1A).

Funds shall be insulated in accordance with these

regulations in the interest of the payment service users

against the claims of other creditors of the payment

institution, in particular in the event of insolvency; or";

(b) in sub-regulation (1C) thereof the words "has been

issued in accordance with sub-regulations (1), (1A) and (1B):"

shall be substituted by the words "has been issued in accordance

with sub-regulations (1), (1A) and (1B), and the said provisions

shall be applied and interpreted mutatis mutandis:".

Regulation 9 of the principal regulations shall be deleted.

€0.09