SPECIAL REGISTRATION SCHEME REGULATIONS

SPECIAL REGISTRATION SCHEME

SUBSIDIARY LEGISLATION 233.10

SPECIAL REGISTRATION SCHEME REGULATIONS

23rd April, 2007

LEGAL NOTICE 112 of 2007, as amended by Legal Notices 126 and 206

of 2007, and 426 of 2012.

(1) The title of these regulations is the Special Registration

Scheme Regulations.

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

establishment of a registration scheme to be known as the Currency

and Bank Deposits Registration Scheme, hereinafter referred to as

the Scheme, whereby individuals residing in Malta who hold

eligible assets without declaring the relevant income (including

capital gains) for the purposes of the Income Tax Act and other

relevant laws, may regularise their position under these laws.

Substituted by

L.N. 126 of 2007.

SPECIAL REGISTRATION SCHEME

SPECIAL REGISTRATION SCHEME

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(1)

In these regulations, unless the context otherwise

requires -

(a) "applicable date" means -

(i)

in respect of assets referred to in regulations

6(a) and 6(b), any date between 23 April, 2007

and 31 July, 2007; and

(ii) in respect of assets referred to in regulations

6(c), 6(d) and 6(e), 16 April, 2007;

(b) "eligible assets" means currency notes denominated in

Maltese lira and euro, deposits denominated in

Maltese lira and euro held with credit institutions

licensed under the Banking Act, and securities

denominated in Maltese lira and euro with a primary

listing on the Malta Stock Exchange;

(c) "individuals" means physical persons;

(d) "relevant laws" means the Income Tax Acts, the

Succession and Donation Duties Ordinance (Cap. 70

of the revised edition of the Laws of Malta, 1942), the

Death and Donation Duty Act, the Duty on Documents

Act and the Duty on Documents and Transfers Act.

(2) The words and expressions used in these regulations which

are also used in the External Transactions Act or the Income Tax

Act shall, unless the context otherwise requires, have the same

meaning as assigned to them in the said Acts.

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

from eligible assets which is received after 22 April, 2007 and re-

invested before the date of registration, shall be deemed to

constitute eligible assets existing on 22 April, 2007 and shall be

eligible for registration under these regulations.

SPECIAL REGISTRATION SCHEME

(1) Individuals residing in Malta who own eligible assets

without declaring the relevant income for the purposes of the

Income Tax Act and other relevant laws, may regularise their

position under 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 Schedule.

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

individual who owns such assets on the applicable date or by the

heir or legatee of such individual when such heir or legatee

becomes the owner of eligible assets.

The Scheme shall run from 23rd April, 2007 to 31st

August, 2007.

Registration of eligible assets shall be executed through the

Central Bank of Malta and the appointed registration agents which

shall be credit institutions licensed in Malta under the Banking Act,

financial institution licensed under the Financial Institutions Act,

stockbrokers licensed under the Investment Services Act, and

persons holding a category 2 or category 3 Investment Services

Licence granted under the Investment Services Act, and in each

case appointed as registration agents by the Central Bank of Malta.

Registration of eligible assets under this Scheme shall be

open to

(a) amounts of Lm1000 or higher in Maltese lira currency

notes;

(b) amounts of _ 2500 or higher in euro currency notes;

(c) deposits denominated in Maltese lira held with credit

institutions licensed under the Banking Act;

(d) deposits denominated in euro held with credit

institutions licensed under the Banking Act;

(e) securities denominated in Maltese lira and, or euro

with a primary listing on the Malta Stock Exchange as

follows

(i)

Malta Government securities

(ii)

corporate bonds

(iii)

equities

(iv)

collective investment funds investing mainly in

securities listed on the Malta Stock Exchange.

(1) An individual who registers eligible assets under the

Scheme shall sign a declaration which is to be provided by the

appointed registration agent, stating that

(a) such individual is the beneficial owner of the assets

being registered;

(b) such individual accepts full responsibility for the

accuracy and authenticity of the information and

documentary evidence provided to the appointed

registration agent;

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(c) the documentary evidence being submitted to the

appointed registration agent is the true original

documentation;

(d) such individual undertakes to make available to the

appointed registration agent any further information

and documentary evidence that may be required by the

agent for the proper exercise of its functions in this

regard;

(e) the registered eligible assets do not represent proceeds

from

(i)

a crime of money laundering under

the

Prevention 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 against the External

Transactions Act and, or the Income Tax Act;

(f)

the declaration is being made in good faith.

(2)

The Registration Certificate 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, a

legally valid identification document number, address

and signature; and details of the fiduciary where

eligible assets registered in terms of regulations 6(c)

and 6(d) are held by a third party;

(c) details of the appointed registration agent.

(1) The appointed registration agent, after having duly

completed the registration 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

11(1).

(3) The Registration Certificate shall be issued in the name of

the beneficial owner of the registered eligible assets.

(4) The Registration Certificate shall be issued by the

appointed registration agent in triplicate: one copy shall be

provided to the applicant, one copy shall be retained by the

appointed registration agent, and one copy shall be provided to the

Appointed Central Registration Certificate Depository.

(5) The Central Bank of Malta is, by means of these

regulations, being appointed the Central Registration Certificate

Depository.

(6) The triplicate copy of all the Registration Certificates

issued by the appointed registration agent during each calendar

mo nt h shal l b e sen t to t he Cent ra l R egi strati on Cert ificat e

Depository within seven (7) days after the end of that month.

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(7)

The Registration Certificate shall not be 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) Other than by order of a Court, every person, including

past and present officers or agents of an appointed registration

a ge n t o r o f t he A p p oi n te d C e n t r a l R e g i s t r a t i on C e r ti f i c a te

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.

(2) Nothing in these regulations shall be construed as

exempting any person from complying with the requirements of the

Prevention of Money Laundering Act or any regulations issued

thereunder.

(1) 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 External Transactions

Act and article 9B of the Income Tax Act.

(2) The submission by the applicant of false information and,

or documentary evidence shall nullify the Certificate and render the

applicant ineligible to the benefits granted under the Scheme.

(1) The issue of a Registration Certificate shall be subject

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

Government. Such fee shall be as follows

(a) four per centum (4%) of the registered amount in

respect of eligible assets registered in terms of

regulations 6(a) and 6(b); and

(b) six per centum (6%) of the registered amount in

respect of eligible assets registered in terms of

regulations 6(c), 6(d) and 6(e).

(2) 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.

(3) The registration fees paid by registered applicants shall 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 (7) days after the end of the calendar month during which the

fees are collected.

(1) All eligible assets registered under the Scheme in

terms of regulations 6(a) and 6(b) shall be deposited by the

appointed registration agent in a special term deposit account with

a credit institution licensed under the Banking Act or at the Central

Bank of Malta by not later than one business day after registration

date.

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(2) Eligible assets registered under the Scheme in terms of

regulations 6(a) and 6(b) shall be deposited, at the discretion of the

applicant, either in the name of the individual who owns such

assets or in a nominee account held by the appointed registration

agent on behalf of his clients.

(3) The special deposit account shall be opened for a period of

one year bearing no interest.

(4) All registered eligible assets placed in special term deposit

accounts with credit institutions licensed in Malta under the

Banking Act shall be re-deposited at the Central Bank of Malta in a

special designated account.

(5) The deposits in respect of eligible assets registered under

the Scheme in terms of regulation 6(a) shall be denominated in

Maltese lira and shall be withdrawn on maturity in the official

currency prevailing in Malta as at the date of maturity at the

applicable official conversion rate.

(6) The deposits in respect of eligible assets registered under

the Scheme in terms of regulation 6(b) shall be denominated in

euro and shall be withdrawn on maturity in euro.

The appointed registration agent shall be entitled to

recover a fee for services rendered to effect registration. Such fee

shall be deducted and retained from the registration fee paid in

respect of the issue of the Registration Certificate. Such fee shall be

equivalent to 5% of the registration fee, provided that it shall not be

less than Lm10 or more than Lm175 per application registered. No

service fee in respect of the registration of assets referred to in

regulations 6(a) and 6(b) shall be charged by an appointed

registration agent which is a credit institution with whom the

relative special deposits are placed.

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