                     CENTRAL BANK OF MALTA                    [ CAP. 204.        1
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; to make provision for the transfer of the assets and liabilities of
the Note Security Fund established by the Currency Notes Ordinance, 1949, to the Central
Bank of Malta; 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, and
XVII of 2002.
ARRANGEMENT OF ACT
Articles 
Part I.  Preliminary  1-2 
Part II.  Establishment and Conduct of Affairs of Bank  3-16 
Part IIA.  Monetary Policy 17-17D
Part III.  Financial Provisions  18-24 
Part IIIA.  Collection of Information 24A-24B
Part IV.  Relations with Government  25-32 
Part V.  Relations with Banks and Financial Institutions  33-38 
Part VI  Relations with the Competent Authority  38A-38C 
Part VII.  Currency  39-49A 
Part VIII.  General  53-55 
  2        CAP. 204. ]               CENTRAL BANK OF MALTA
PART I
PRELIMINARY 
Short title. 1. The short title of this Act is Central Bank of Malta Act. 
Interpretation. 
Amended by: 
XX.1981.2; 
XI.1988. 2; 
XXVI.1994.3;
XVII. 2002.66.
2. In this Act, unless the context otherwise requires -
"Bank" means the Central Bank of Malta established by article 3
of this Act;
''bank'' or ''credit institution'' means any person carrying on the
business of banking 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 of this Act;
Cap. 371.
''business of banking'' has the same meaning assigned to it under
the Banking Act;
Cap. 371.
Cap. 376.
Cap. 370.
Cap. 403.
Cap. 404.
Cap. 345.
"Competent Authority" means that authority nominated to
regulate the business of banks, financial institutions or other
financial services under the Banking Act, the Financial Institutions
Act, the Investment Services Act, the Insurance Business Act, the
Insurance Brokers and other Intermediaries Act, the Financial
Markets Act, or such other law as the Minister may from time to
time by notice in the Gazette for the purposes of and under the
authority of this article establish;
 ''directive'' means a directive issued by the Bank under this Act;
"director", in relation to the Bank, includes the Governor and the
Deputy Governor;
''external assets'' includes securities and all other assets in the
currency of any country other than Malta or units of account in
whatever form held;
Cap. 376.
"financial institution" means an institution licensed under the
Financial Institutions Act, and includes any branch in Malta of an
institution not incorporated in Malta;
"Gazette" means the Malta Government Gazette; 
"Government" means the Government of Malta;
"Governor" and "Deputy Governor" mean respectively the
Governor and the Deputy Governor of the Bank appointed under
article 8 of this Act, and "Governor" includes a person for the time
being acting as Governor;
"Malta" has the same meaning as is assigned to it by article 124
of the Constitution of Malta;
"Minister" means the Minister responsible for finance.
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        3
 PART II
ESTABLISHMENT AND CONDUCT OF AFFAIRS OF BANK
Establishment of 
Bank.
3. (1) There shall be a bank, to be called the Central Bank of
Malta.
(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.
Principal objective. 
Amended by: 
XXVI.1994.4.
Substituted by:
XVII. 2002.67.
4. (1) The primary objective of the Bank shall be to maintain
price stability. Without prejudice to its primary objective, the Bank
shall promote orderly and balanced economic development.
(2) To the extent that this does not interfere with its primary
objective, it shall also be the objective of the Bank -
( a ) to influence the volume and conditions of supply of
credit;
( b ) to manage and maintain external reserves, so as to
safeguard the international value of the currency;
( c ) to ensure the stability of the financial system;
( d ) to promote and participate in the establishment of a
sound and efficient payment system;
( e ) to issue legal tender currency notes and coins;
( f ) to advise the Government generally on financial and
economic matters;
( g ) to compile and publish statistics as may be necessary
to carry out its tasks under the provisions of this Act
and of any other law;
( h ) to perform such other functions as may be assigned to
it by law.
(3) The Bank may issue, amend or revoke directives as may be
required for carrying into effect any of the provisions of this Act.
Principal office of 
Bank.
Amended by: 
XI. 1988.3.
Substituted by:
XVII. 2002.68.
5. The Bank shall have its principal office in Malta; it may
open offices outside Malta and it may appoint agents and
correspondents.
Capital and 
Reserves. 
Amended by: 
XIII. 1983.5.
6. Repealed by article 5 of Act XXVI of 1994.
Board of Directors.
Amended by:
XVII. 2002.69.
7. (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 matters of monetary
policy under articles 17 to 17D.
  4        CAP. 204. ]               CENTRAL BANK OF MALTA
(2) The Board shall consist of a Governor, of a Deputy
Governor and of three other directors.
(3) Without prejudice to the provisions of articles 39 to 49A,
neither the Bank, nor any member of the Board when exercising the
functions, duties and powers under this Act, shall seek or take
instructions from the Government or from any other body.
Governor and 
Deputy Governor. 
Amended by: 
XIX.1974.2; 
LVIII.1974.68; 
XIII.1983.2; 
XI 1988.4; 
XXVI. 1994.6;
XVII. 2002.70.
8. (1) The Governor and the Deputy Governor 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 Prime Minister.
They shall be appointed for a term of five years but shall be eligible
for re-appointment. They shall receive such remuneration as shall
be set out in their respective letters of appointment.
(2) Without prejudice to the provisions of article 17, 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. The
representation of the Bank in judicial proceedings shall be vested in
the Governor.
(3) The Deputy Governor shall perform such duties as the
Governor may direct and, in the event of the absence of, or a
vacancy in the office of, the Governor, the Deputy Governor shall
perform the duties of the Governor and shall have and may exercise
the powers and perform the functions of the Governor.
(4) Deleted by Act XVII. 2002.70 .
(5) The Governor and the Deputy Governor 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 Governor 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.
Directors other 
than Governor and 
Deputy Governor. 
Amended by: 
XIX. 1974.3;
XVII. 2002.71.
9. The directors of the Bank, other than the Governor and
Deputy Governor, shall - 
( a ) be appointed by the Prime Minister;
( 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 re-
appointment;
( d ) be entitled to such honorarium as the Prime Minister
may determine.
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        5
Disclosure of 
interest.
Amended by:
XVII. 2002.72.
10. (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.
Disqualification, 
resignation and 
filling of 
vacancies. 
Amended by: 
XIX.1974.4; 
XXVI.1994.7;
XVII. 2002.73.
11. (1) 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.
(2) A director may be relieved of his office only if he no longer
fulfils the conditions required for the performance of his duties or
if he has been guilty of serious misconduct.
(3) A director may resign his office on giving at least three
months’ notice of his intention in writing to the Prime Minister. 
(4) 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.
Board procedure 
and quorum.
12. (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
the Board and, in his absence from any meeting, the Deputy
Governor shall preside; and no decision shall be valid which is
  6        CAP. 204. ]               CENTRAL BANK OF MALTA
taken at a meeting of the Board at which neither the Governor nor
the Deputy Governor is present.
(4) Three members of the Board 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.
Staff 
appointments.
13. 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.
Exclusion of 
liability.  
Added by: 
XXVI. 1994.8.
Amended by:
XVII. 2002.74.
13A.   (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
in damages for anything done or omitted to be done 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 subarticle (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.
Remuneration, etc. 14. 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.
Principal business 
and powers of the 
Bank. 
Amended by: 
XXIX.1968.2; 
XIX.1974.5; 
XX.1981.3; 
XIII.1983.3; 
XXXVIII.1986.2;    
XI.1988.5;   
XXVI. 1994.9;
IX.1997.4.
Substituted by:
XVII. 2002.75.
15. (1) Without prejudice to the other provisions of this Act,
the Bank may, in order to achieve its objectives and to carry out its
functions under this Act:
( a ) open accounts and accept and place deposits as
provided in articles 26 and 33, and, in special cases,
with the prior approval of the Board, open accounts for
and accept deposits from other persons;
( b ) maintain accounts with central banks or other credit
institutions and agents abroad, accept from, and place
deposits with, any such credit institution or agent, and
act as correspondent, banker or agent for any central
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        7
bank or other credit institution or other monetary
authority and for any international financial institution
established under international treaties;
( c ) subscribe to, purchase, sell, discount or re-discount
equity, debt or other financial instruments as may be
approved by the Board, provided that any equity
interests in an undertaking 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 ) issue, purchase, sell, discount or re-discount financial
instruments bearing the Bank's name in such form and
for such terms and maturities as may be approved by
the Board;
( e ) at its discretion, grant to any credit or financial
institution in Malta loans and advances on such terms
and conditions as may be approved by the Board and
for such periods not exceeding twelve months against
such adequate security as the Board may consider
appropriate;
( f ) enter into contractual agreements for the repurchase
and reverse repurchase of publicly issued securities of
or guaranteed by the Government and of other
financial instruments as may be approved by the
Board; and
( g ) when it deems such action necessary to safeguard
financial stability or in other exceptional
circumstances, grant a loan or advance to any credit
institution incorporated in Malta against such forms of
security as the Board may consider appropriate.
(2) In managing and maintaining the external reserves, the
Bank may 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 external assets and precious metals; and
( b ) carry out any type of financial transaction with
domestic or foreign institutions or with international
organisations, including borrowing and lending
operations.
(3) The Bank may invest its staff and pension funds and other
internal funds of the Bank in government securities or other first-
class securities approved by the Board.
(4) 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.
(5) ( 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
  8        CAP. 204. ]               CENTRAL BANK OF MALTA
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 subarticle 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.. 
Prohibited 
activities. 
Amended by: 
XXIX.1968.3; 
XIX.1974.6; 
XX. 1981.4; 
XI.1988.6; 
XXVI.1994.10.
Substituted by:
XVII. 2002.75.
16. The Bank may not -
( a ) purchase, acquire or lease immovable property except
in accordance with the provisions of this Act or except
in so far as the Bank may consider necessary or
expedient for the provision, or future provision, of
premises for the conduct of its business, for the use of
and residence of staff or other similar requirements
incidental to the performance of its functions under
this Act;
( b ) accept for discount, or as security for an advance made
by the Bank, any instruments signed by members of
the Board or by the Bank's officials or other
employees;
( c ) pay interest except, at its discretion, on deposits
maintained with the Bank in accordance with articles
26 or 33(1), or on special accounts maintained with the
approval of the Board;
( d ) open accounts and accept and place deposits otherwise
than as provided in article 15(1)( a ) and ( b ); and
( e ) grant or permit to be outstanding in respect of any one
of its employees unsecured advances or unsecured
credit facilities which in the aggregate exceed twelve
months emoluments of such employees.
Added by:
XVII. 2002.77.
PART IIA
MONETARY POLICY
Monetary Policy 
Advisory Council.
Added by:
XVII. 2002.77.
17. (1) There shall be a council of the Bank, to be known as
the Monetary Policy Advisory Council, which shall have
responsibility to advise the Governor on matters relating to
monetary policy.
(2) The Council shall consist of -
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        9
(i) the Governor, Deputy Governor and the other
three Directors of the Bank, and 
(ii) three members appointed by the Governor, after
consultation with the Board, from among the
senior officials within the Bank, or from among
suitably qualified individuals from outside the
Bank, being in each case persons who the
Governor is satisfied have knowledge or
experience which is likely to be relevant to the
Council’s functions.
Governor to take 
decisions on 
monetary policy.
Added by:
XVII. 2002.77.
17A. (1) The sole authority and responsibility within the Bank
to take decisions and to perform any function or duty or to exercise
any power relating to monetary policy shall vest in the Governor.
(2) The Governor shall keep the Council informed of, and may
discuss with the Council, the discharge of the functions, duties and
powers vested in him under this article.
(3) Whenever the Governor is unable, by reason of absence, ill-
health or any other cause to discharge the functions, duties and
powers referred to in this article, or where the office of the
Governor is vacant, the authority and responsibility vested in the
Governor under sub-article (1) shall, during such inability or
vacancy, vest in the Deputy Governor.
(4) Neither the Bank nor any member of the Council, including
the Governor, shall when exercising the functions, duties and
powers under this article, seek or take instructions from the
Government or from any other body.
(5) The Governor, after consulting the Council, may give
directions and guidance on the measures to be adopted in the
implementation by the Bank of the monetary policy functions
established in accordance with this Act.
Governor to report 
to the House of 
Representatives.
Added by:
XVII. 2002.77.
17B. The Governor may be requested by the House of
Representatives to report on the conduct by the Bank of its
monetary policy functions 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.
Proceedings.
Added by:
XVII. 2002.77.
17C. (1) Four members of the Council shall form a quorum at
any meeting, provided that the Governor is present for all the
meetings, otherwise the Council shall regulate its own proceedings.
(2) Subject to the provisions of article 17D, the members of the
Council shall be bound by the duty of professional secrecy in
matters relating to monetary policy.
Publication of 
decisions and 
interest rates.
Added by:
XVII. 2002.77.
17D. (1) As soon as practicable after each meeting of the
Monetary Policy Advisory Council, the Bank shall publish a
statement of the decision on monetary policy taken by the
Governor.
  10        CAP. 204. ]               CENTRAL BANK OF MALTA
(2) The Bank shall also make public at all times its official
interest rates.
(3) The publication of decisions and of interest rates under this
article shall be in such manner as the Bank deems fit.
PART III 
FINANCIAL PROVISIONS
Capital and 
Reserves. 
Amended by: 
XIII. 1983.5. 
Substituted by: 
XXVI. 1994.11.
Amended by:
XVII. 2002.78.
18. (1) The Bank shall have an authorised capital of five
million liri which shall be fully paid and shall be held exclusively
by the Government.
(2) The Bank shall maintain a General Reserve Fund and a
Special Reserve Fund which, at the end of each financial year of
the Bank, shall be of not less than five million liri and two million
liri respectively.
(3) The General Reserve Fund shall be available for any
purpose as may be determined by the Board and the Special
Reserve Fund shall be available for the purpose specified in article
24(2).
External reserves. 
Substituted by: 
XIX.1974.7; 
XX.1981.5. 
Amended by: 
XXXVIII. 1986.3; 
XI.1988.7;
XXVI. 1994.12.
Substituted by:
XVII, 2002.79.
19. (1) In managing and maintaining the external reserves
under the provisions of article 15(2), the Bank shall maintain a
reserve of external assets which shall at all times be determined at
no less than sixty per centum of the value of the Bank’s liabilities.
(2) For the purposes of this article, the term ''Bank’s
liabilities'' shall mean:
(i) the value of the Bank's notes and coins issued,
excluding coins issued for numismatic purposes;
(ii) the deposit liabilities of the Bank; and
(iii) the nominal amount of financial instruments
issued and outstanding in terms of article
15(1)( d ).
Investment 
Committee . 
Added by: 
XX. 1981.6.
20. Repealed by article 8 of Act XI of 1988.
Financial year. 
Amended by: 
XXVI.1994.13.
21. The financial year of the Bank shall begin on the first day
of January and end on the thirty-first day of December.
Audit.
Amended by:
XVI. 1997.7.
XVII. 2002.80.
22. The accounts of the Bank shall be audited by independent
external auditors appointed annually by the Board with the
approval of the Minister.
Annual accounts. 
Amended by: 
XX. 1981.7; 
XI. 1988.9;
XVII. 2002.81.
23. (1) 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,
( b ) a statement of the Bank’s investments; and
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        11
( c ) a report on its operations during that year,
and shall publish the report referred to in paragraph ( c ).
(2) 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, of the statement
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.
(3) 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.
Determination and 
allocation of 
profits.
Amended by: 
X.1968.2; 
XIX.1974.8. 
Substituted by: 
XX.1981.8. 
Amended by: 
XIII. 1983.5; 
XXXVIII. 1986.4; 
XI. 1988.10; 
XXVI. 1994.14;
XVII. 2002.82.
24. (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 current 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) The profits and losses which are attributable to any
revaluation of the Bank’s net external assets or liabilities made as a
result of any adjustment of the external value of the Maltese lira in
terms of article 40 shall be excluded from the computation of the
annual profits and losses of the Bank and shall be credited or
debited, as the case may be, to the Special Reserve Fund
established under article 18(2). Without prejudice to the aforesaid
provisions article 18(2), the balance in such Fund shall be dealt
with as determined by the Board.
(3) Deleted by Act XVII. 2002.82 .
(4) After such allocations as may be determined by the Bank
under the provisions of subarticle (1) have been made, the
remainder of the net profits established as aforesaid shall be paid to
the Government.
Added by:
XVII. 2002.83.
PART IIIA
COLLECTION OF INFORMATION
Collection of 
information.
Added by:
XVII. 2002.83.
24A. (1) Without prejudice to the provisions of article 38A(2),
the Bank may require a reporting agent as defined in subarticle (3)
to provide the Bank with such information as the Bank may
consider necessary to carry out its functions under this Act, and the
Bank may enquire into and ask for clarifications of any information
so provided.
  12        CAP. 204. ]               CENTRAL BANK OF MALTA
(2) It shall be the duty of every reporting agent required to
provide the Bank with information as specified in subarticle (1), to
comply with such requirement.
(3) For the purpose of this article and of the following article, a
''reporting agent'' may include:
Cap. 371. ( a ) a credit institution licensed under the Banking Act;
Cap. 376. ( b ) a financial institution licensed under the Financial
Institutions Act;
Cap. 370. ( c ) a person licensed under the Investment Services Act;
Cap. 403.
Cap. 404.
( d ) a person licensed to conduct business of insurance
under the Insurance Business Act or a person
registered or enrolled to conduct insurance
intermediaries’ activities under the Insurance Brokers 
and other Intermediaries Act;
Cap. 371.
Cap. 370.
( e ) a person who has issued a debt security, and is not a
credit institution licensed under the Banking Act or a
person licensed under the Investment Services Act;
Cap. 371.
Cap. 370.
( f ) a person who has acted as an agent in connection with
arranging or managing the issue of a debt security, and
is not a credit institution licensed under the Banking
Act or a person licensed under the Investment Services
Act;
( g ) a person who holds external assets and liabilities or
carries out cross-border transactions which the Bank
determines relevant to compile balance of payments
statistics or to establish the balance sheet of the stock
of external financial assets and liabilities for Malta,
otherwise referred to as the international investment
position; or
( h ) any other person who the Bank determines, after
consultation with such person, is in possession of
information considered relevant to carry out its tasks
under this Act.
(4) Except as provided for under Part VI of this Act,
information collected under the provisions of this article shall be
subject to the duty of professional secrecy.
Collection of 
statistical 
information.
Added by:
XVII. 2002.83.
24B. (1) The Bank may issue directives providing for the
definition and imposition of its statistical reporting requirements,
establishing the standards for transmission and accuracy of
statistical information and specifying the conditions under which
the right to verify or to carry out the compulsory collection of
statistical information may be exercised under the provisions of
subarticle (2).
(2) The Bank shall have the right to verify the accuracy and
quality of the statistical information submitted under subarticle (1),
and to carry out its compulsory collection. The right to verify
statistical information or to carry out its compulsory collection
shall comprise the right to:
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        13
( a ) require submission of documents;
( b ) examine the books and records of the reporting agent;
( 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.
(3) When it deems it necessary in the carrying out of its
functions under this Act, the Bank shall prepare and publish
statements, consolidating and, or, aggregating statistical
information so furnished under this article and, where necessary,
under article 38A(1).
PART IV 
RELATIONS WITH GOVERNMENT
Adviser to 
Government.
Amended by:
XVII. 2002.84.
25. The Bank shall advise the Government generally on
financial and economic matters.
Banker to 
Government.
Amended by:
XVII. 2002.85.
26. (1) The Bank shall act as banker to the Government and
may open accounts for and accept deposits from the Government.
(2) The Bank may open accounts for and accept deposits from
funds, corporations and institutions controlled by the Government
or established by law and act as banker to any such funds,
corporations and institutions.
Prohibition of 
public sector 
financing.
Substituted by:
XXVI.1994.15;
XVII. 2002.86.
27. (1) The Bank shall not grant overdrafts or any other type
of credit facility to the Government or to any public undertaking,
public authority or Government-owned corporation, nor shall the
Bank directly purchase their debt instruments.
(2) The Government-controlled credit institution shall be given
the same treatment as other credit institutions with regard to the
supply of reserves.
Bank as agent for 
Government.
28. The Bank may act generally as agent for the Government
and may be entrusted with the issue and management of Treasury
Bills and Government loans publicly issued in Malta -
( a ) where the Bank can do so appropriately and
consistently with the provisions of this Act and with
its duties and functions as a Central Bank; and
( b ) on such terms and conditions as may be agreed
between the Government and the Bank.
Issue and 
management of 
Government loans.
29. Deleted by Act XVII. 2002.87 .
  14        CAP. 204. ]               CENTRAL BANK OF MALTA
Posterity Fund. 
Added by: 
XX.1981.9. 
Amended by: 
XXXVIII. 1986.5.
30. Repealed by article 9 of Act XI of 1988 . *  
Information to 
Minister.
31. The Bank shall keep the Minister informed of the policy of
the Bank.
Directions by the 
Minister. 
Substituted by: 
XXVI. 1994.16.
32. Deleted by Act XVII. 2002.87 .
PART V 
Amended by: 
XXVI. 1994.17.
Substituted by:
XVII. 2002.88.
RELATIONS WITH CREDIT AND FINANCIAL INSTITUTIONS
Banker to credit 
and financial 
institutions. 
Substituted by: 
XXIX. 1968.4. 
Amended by: 
XXVI. 1994.18;
XVII. 2002.89.
33. (1) The Bank may act as banker to credit and financial
institutions in Malta and may open accounts for and accept deposits
from such credit and financial institutions.
(2) The Bank may also open accounts and place deposits with
credit institutions.
Other credit 
institutions as 
agents.
Amended by:
XVII. 2002.90.
34. The Bank may in exceptional circumstances appoint one or
more other credit institutions in Malta to act as its agent for the
issue, re-issue, exchange and withdrawal of notes and coin, or for
other purposes, on such terms and conditions as may be agreed
between the Bank and each of such other credit institutions.
*Act XI of 1988: Transitory Provision
(2) Notwithstanding the repeal of article 30 of the principal Act, the Posterity
Fund shall continue to exist but shall be wound up with effect from a date which
shall not be later than the 30 June, 1988, and which shall be specified by the
Minister by notice in the Gazette.
(3) On the date so specified by the Minister all assets, liabilities and the net
profits of the Posterity Fund up to that date shall be transferred to Government and
passed to the Consolidated Fund and all rights and obligations of the Fund shall vest
in the Government.
(4) Notwithstanding the provisions of any other law, the management, control
and administration of the Posterity Fund shall be deemed to have vested in the Bank
from 12 May, 1987 until the date specified by the Minister as provided under sub-
article (2) of this article and anything done by the Bank in the management, control
and administration of that Fund as aforesaid during that said period shall be deemed
to have been done under the authority of this article.
(5) The Bank shall be responsible for winding up the Posterity Fund and for
drawing up audited accounts of that Fund for the year closing on 31 December, 1987
and for the period from 1 January, 1988 to the date specified by the Minister under
sub-article (2) of this article.
(6) The Bank shall as soon as may be but not later than six months after the
audited accounts of the Posterity Fund have been finalized as provided under sub-
article (5) of this article, transmit to the Minister a copy of such audited accounts
and the Minister shall cause that copy to be laid before the House of Representatives
and to be published in the Gazette.
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        15
Co-operation with 
other credit 
institutions. 
Substituted by: 
XXVI. 1994.19.
Amended by:
XVII. 2002.91.
35. The Bank shall seek the co-operation of, and shall
cooperate with, credit and financial institutions in Malta to further
such policies not inconsistent with this Act as shall be in the
national interest.
Payment systems.
Substituted by:
XVII. 2002.92.
36. (1) The Bank shall oversee and regulate the operation of,
and the participation in, domestic payment systems as well as any
form of cash or security 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 is approved and
authorised by the Bank.
(3) Any person who contravenes or fails to comply with the
provisions of subarticle (2) shall be guilty of an offence and shall
be liable on conviction to a fine ( multa ) not exceeding twenty
thousand liri or to imprisonment not exceeding two years, or to
both such fine and imprisonment.
(4) No proceedings for an offence under subarticle (3) shall be
commenced without the consent of the Attorney General.
(5) The Bank may issue directives in respect of:
( a ) any or all of the objects mentioned in subarticle (1)
including, without prejudice to the generality of the
aforesaid, 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;
( b ) cross-border credit transfer services provided by credit
and financial institutions or by any person that by way
of business executes cross-border credit transfers; and 
( c ) electronic payment services, including, but not limited
to, the provision of debit and credit card, and
electronic money, services.
(6) Unless otherwise provided in the directives made in virtue
of subarticle (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. 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.
  16        CAP. 204. ]               CENTRAL BANK OF MALTA
(7) In this article and in any directive issued hereunder, unless
the context otherwise requires:
''participant'' means any person, including the Bank, who
participates in a payment system and may include an indirect
participant approved by the Bank;
''payment system'' or ''system'' means a formal arrangement
between three or more participants with common rules and
standardised arrangements, for 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, 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.
Appeals.
Added by:
XVII. 2002.92.
36A. Any person who:
( a ) is aggrieved by decisions taken by the Bank under
article 36(2) or under any directives issued under
article 36(5)( a );
( b ) is a party to any disputes in respect of rights and
obligations arising under any directives issued under
article 36(5)( b ) and ( c ); or
( c ) has had an administrative penalty imposed upon him
pursuant to subarticle  of article 52A(1),
Cap. 330.
may appeal to the Financial Services Tribunal established under the
Malta Financial Services Authority Act within such period and
under such conditions as established under that Act.
Deposit of credit 
institution with 
Bank.
Amended by:
LVIII. 1974.68;
L.N.148 of 1975; 
XIII. 1983.5;
XXVI. 1994.20;
XXIV.1995.362;
IX. 1997.4.
Substituted by:
XVII. 2002.92.
37. (1) The Bank may require credit institutions carrying on
the business of banking in Malta to maintain reserve deposits with
the Bank on such terms and conditions as the Bank may prescribe
from time to time by directives in relation to its monetary policy
functions.
(2) No credit institution shall be required to maintain a larger
minimum proportion of reserve deposits than any other credit
institution.
(3) In order to ensure observance of any directive issued under
subarticle (1) and in carrying out the compulsory collection of
information, the Bank shall have the powers granted to it under,
and shall act in accordance with, the provisions of article 52A.
Cap. 371.
(4) For the purpose of this article, the term ''credit institution''
shall include electronic money institutions as defined in the
Banking Act.
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        17
Interest rates of 
credit and financial 
institutions. 
Amended by:
LVIII. 1974.68; 
L.N. 148 of 1975;
XIII. 1983.5;
XXVI. 1994.21;
XXIV. 1995.362.
Substituted by:
XVII. 2002.92.
38. Notwithstanding anything else contained in any other law,
credit and financial institutions may determine the rate of interest
payable on deposits held by credit institutions, and the rate of
interest that they may charge on loans, advances and any other
credit facility as well as in the issue of debentures or debenture
stock or other instruments creating or acknowledging indebtedness.
Added by:
XVII. 2002.92.
PART VI
RELATIONS WITH THE COMPETENT AUTHORITY
Information, 
inspection and 
reporting by the 
Competent 
Authority. 
Added by: 
XXVI.1994.22.
Substituted by:
XVII. 2002.92.
38A.   (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. 
Information to 
Competent 
Authority. 
Added by: 
XXVI. 1994.22.
Substituted by:
XVII. 2002.92.
38B.   (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 24A.
Information by 
banks. 
Added by: 
XXVI. 1994.22.
Substituted by:
XVII. 2002.92.
38C.  Any information exchanged between the Bank and the
Competent Authority shall be subject to the duty of professional
secrecy.
PART VII 
CURRENCY
Currency of Malta. 
Substituted by: 
XX.1971.2. 
Amended by 
XIX. 1974.9; 
XIII.1983.4, 5; 
XXVI.1994.25.
39. (1) The unit of currency in Malta shall be the Maltese lira;
and the symbol of the Maltese lira shall be Lm.
(2) The Maltese lira shall be divided into one hundred cents
and each cent shall be divided into ten mils.
(3) The Minister may make regulations regarding the treatment
of the Maltese lira for accounting purposes.
  18        CAP. 204. ]               CENTRAL BANK OF MALTA
External value of 
the Maltese lira. 
Amended by: 
X.1968.3. 
Substituted by: 
XIX.1974.10; 
XX.1981.10. 
Amended by: 
XIII. 1983.5;
XVII. 2002.93.
40. The external value of the Maltese lira shall be determined
and may be subsequently adjusted or suspended by the Minister on
the recommendation of the Bank and with the consent of the Prime
Minister. Notice of such determination, adjustment or suspension
shall be published in the Gazette at the earliest opportunity.
Issue and 
redemption of 
currency.  
Amended by: 
XVII. 1971.2;
XXIV.1972.2.
Substituted by: 
XIX.1974.11. 
Amended by: 
XX. 1981.11; 
XIII. 1983.5;
XVII. 2002.94.
41. (1) Subject to the provision of any law relating to the
control of exchange and to subarticle (2), the Bank shall at its
principal office in Malta issue and redeem Malta currency at its
discretion against external assets in such amounts and at such rate
of exchange as the Bank shall determine.
(2) The rates of exchange quoted by the Bank for spot
transactions in terms of sub-article (1) shall not differ from the
external value of the Maltese lira in terms of any other currency by
a margin in excess of that which may be determined from time to
time by the Minister by notice in the Gazette.
Notes.  
Amended by: 
XIX.1974.12; 
XI. 1988.12; 
XXVI. 1994.26;
XVII. 2002.95.
42. (1) The Bank shall have the sole right of issuing legal
tender currency notes in Malta, and shall provide for the printing of
such notes and for all matters relating to the security of such notes.
(2) Notes issued by the Bank shall be in such denominations,
and of such forms and designs, as shall be approved by the Minister
on the recommendation of the Bank.
(3) Notes issued or deemed to be issued by the Bank under this
Act shall be legal tender in Malta at their face value for the
payment of any amount.
(4) Notwithstanding the provisions of sub-article (3) of this
article, the Bank shall have power, on due notice being given
through the Minister in the Gazette, to call in any of the notes
currently legal tender on payment of the face value thereof and any
such notes shall, on the expiration of the period mentioned in the
notice, cease to be legal tender but, subject to the provisions of sub-
article (5) of this article and until the expiration of ten years
following the end of the period aforesaid, shall be redeemable by
the Bank on demand at par and without charge.
(5) No person shall be entitled to recover from the Bank the
value of any lost, stolen, mutilated or imperfect note. The
circumstances in which, and the conditions and limitations subject
to which the value of lost, stolen, mutilated or imperfect notes may
be refunded as of grace shall be within the absolute discretion of
the Bank.
(6) After the expiration of one year following the end of the
period mentioned in the notice calling in any notes under subarticle
(4), any 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 subarticle (4).
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        19
(7) Any note which has been tampered with or has ceased to be
legal tender or is counterfeit may be called in, cut, destroyed or
otherwise disposed of in such manner and under such conditions as
the Bank may determine. It shall be lawful for any Police officer to
seize any such note as aforesaid from the possession of any person
even though such person be not charged with, or suspected of
having committed a crime.
Coin. 
Amended by: 
XX.1971.3; 
XI. 1988.13; 
XXVI. 1994.27;
XVII. 2002.96.
43. (1) The Bank shall have the sole right of issuing legal
tender coins in Malta, and shall provide for the minting of such
coins and for all matters relating to the security of such coins.
(2) Coins issued by the Bank shall be in such denominations,
and of such forms and designs, as shall be approved by the Minister
on the recommendation of the Bank.
(3) The standard weight and composition of coins issued by the
Bank and the amount of remedy and variation shall be determined
by the Minister on the recommendation of the Bank.
(4) Coins issued by the Bank shall, if such coins have not been
tampered with, be legal tender in Malta for such amounts as may be
notified in the Gazette by the Minister on the recommendation of
the Bank.
(5) A coin shall be deemed to have been tampered with if the
coin has been impaired, diminished or lightened otherwise than by
fair wear and tear or has been defaced.
(6) Notwithstanding the provisions of sub-article (4) of this
article, the Bank shall have power, on due notice being given by the
Minister in the Gazette to call in any of the coins currently legal
tender on payment of the face value thereof and any such coins
shall, on the expiration of the period mentioned in the notice, cease
to be legal tender but, subject to the provisions of sub-articles (5)
and (9) of this article and until the expiration of two years
following the end of the period aforesaid shall be redeemable by
the Bank on demand at par and without charge.
(7) After the expiration of six months following the end of the
period mentioned in the notice calling in any coins under subarticle
(6), any 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 subarticle (6).
(8) Any coin which has been tampered with or has ceased to be
legal tender or is counterfeit may be called in, cut, broken,
destroyed or otherwise disposed of in such manner and under such
conditions as the Bank may determine. It shall be lawful for any
Police officer to seize any such coin as aforesaid from the
possession of any person even though such person be not charged
with, or suspected of having committed, a crime.
(9) No person shall be entitled to recover from the Bank the
value of any lost, stolen, mutilated or imperfect coin. The
  20        CAP. 204. ]               CENTRAL BANK OF MALTA
circumstances and conditions under which such value may be
refunded as of grace shall be within the absolute discretion of the
Bank.
Definition of 
currency note or 
coin.
Substituted by:
XVII. 2002.97.
44. For the purposes of the next following six articles,
''currency note'' or ''coin'' means a currency note or coin issued or
deemed to be issued under this Act and any other note or coin, by
whatever name called, which is legal tender in the country outside
Malta in which it is issued.
Forgery and 
uttering of 
currency. 
Amended by:
XXVI.1994.28.
45. Whosoever forges any currency note or utters any forged
currency note knowing the same to be forged shall be liable, on
conviction, to imprisonment for a term of not less than two years
and not exceeding nine years:
  Provided that where a forged currency note is uttered by a
person who proves that at the time at which it came into his custody
or possession he did not know the same to be forged, the
punishment shall be reduced to a term of imprisonment of not less
than two months and not exceeding three years.
Possession of 
forged notes.
46. Whosoever without lawful authority or lawful or
reasonable excuse (the proof whereof shall lie on the person
accused) purchases or receives from any person, or has in his
custody or possession, a forged currency note knowing the same to
be forged shall be liable, on conviction, to imprisonment for a term
of not less than thirteen months and not exceeding five years.
Making or having 
in possession paper 
or implements for 
forgery.
Amended by:
XVII. 2002.98.
47. Whosoever without lawful authority or lawful or
reasonable excuse (the proof whereof shall lie on the person
accused) -
( a ) makes, uses, or knowingly has in his custody or
possession, any paper intended to resemble and pass as
special paper such as is provided and used for the
making of any currency note, or any such special
paper,
( b ) makes, uses, or knowingly has in his custody or
possession, any frame, mould or instrument for
making such paper, or for producing in or on such
paper any words, figures, letters, marks, lines, or
devices, peculiar to and used in or on any such paper,
( c ) engraves or in anywise makes upon any plate, wood,
stone, or other material, or produces in electronic or
digital form, any words, figures, letters, marks, lines
or devices, the print whereof resembles in whole or in
part the words, figures, letters, marks, lines, or
devices, peculiar to and used in or on any currency
note,
( d ) uses or knowingly has in his custody or possession any
plate, wood, stone, or other material, or any other
electronic or digital storage device upon which any
such words, letters, figures, marks, lines, or devices,
have been engraved, produced or stored in electronic
or digital form,  or in anywise made as aforesaid,
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        21
( e ) uses or knowingly has in his custody or possession any
paper upon which any such words, figures, letters,
marks, lines, or devices, have been printed or in
anywise made as aforesaid,
shall be liable, on conviction, to imprisonment for a term of not
less than thirteen months and not exceeding five years.
Mutilation and 
defacement of 
currency notes. 
Amended by: 
XIII. 1983.5; 
XXVI.1994.29
48. Whosoever without lawful authority or lawful or
reasonable excuse (the proof whereof shall lie on the accused
person) mutilates, cuts, tears, or perforates with holes, any currency
note or in any way defaces any currency note by writing, printing,
drawing, or stamping thereon, or by attaching or affixing thereto
anything in the nature or form of an advertisement, shall be liable,
on conviction, to a fine ( multa ) not exceeding fifty liri.
Coinage offences. 
Amended by: 
XXVI. 1994.30.
49. (1) Whosoever counterfeits or lightens or impairs or melts
down any coin or introduces or utters any counterfeit or debased
coin knowing the same to be counterfeit or debased shall be liable,
on conviction, to imprisonment for a term of not less than thirteen
months and not exceeding nine years:
  Provided that where a counterfeit or debased coin is introduced
or uttered by a person who proves that at the time at which it came
into his custody or possession he did not know the same to be
counterfeit or debased, the punishment shall be reduced to a term of
imprisonment of not less than two months and not exceeding three
years.
(2) Whosoever, without the authority of the Bank, makes or
knowingly keeps in his possession any die or other instrument or
machine exclusively intended for coinage shall, on conviction, be
liable to imprisonment for a term of not less than nine months and
not exceeding two years.
(3) For the purposes of this article, "coin" means a coin, by
whatever name called, which is legal tender in Malta or which is
legal tender in the country outside Malta in which it is issued.
Obligations of 
credit and financial 
institutions.
Added by:
XVII. 2002.99.
Cap. 376.
49A.  Credit institutions, including financial institutions licensed
under the Financial Institutions Act to exchange notes and coins of
different currencies as a business activity, shall be obliged to
withdraw from circulation all currency notes and coins received by
these institutions which they know or have sufficient reason to
believe to be counterfeit, and shall immediately deliver them over
to the Bank.
Reproduction of 
notes and coins.  
Added by: 
XXVI. 1994.31.
Amended by:
XVII. 2002.99.
49B.   Notwithstanding anything contained in the foregoing
articles, under duly warranted circumstances the Bank may, subject
to specific conditions, authorise the reproduction of currency notes
or coins.
  22        CAP. 204. ]               CENTRAL BANK OF MALTA
Amended by: 
XXVI. 1994.32. 
PART VIII 
GENERAL
Preliminary 
expenses. 
50. Repealed by article 33 of Act XXVI of 1994. 
Transfer of assets 
from the Currency 
Board. 
Amended by: 
XIII. 1983.5.
51. Repealed by article 33 of Act XXVI of 1994.
Surplus transferred 
assets. 
Amended by:
XIII. 1983.5. 
 52. Repealed by article 33 of Act XXVI of 1994.
Administrative 
penalties.
Added by:
XVII. 2002.100.
52A. (1) The Minister may by regulations provide for
administrative penalties which may be imposed and recovered by
the Bank without recourse to a court hearing:
Provided that an administrative penalty may not be greater
than five thousand Maltese liri.
(2) Without prejudice to the generality of the provisions of
subarticle (1), the Minister may by such regulations prescribe
administrative penalties for the following breaches:
( a ) where a reporting agent contravenes or fails to comply
with a reporting requirement under the provisions of
article 24A or article 24B or fails to comply with a
requirement contained in any directive issued under
article 24B(1); and 
( b ) where a participant in a payment system contravenes
or fails to comply with a requirement contained in any
directive issued under article 36.
(3) The Minister may, by regulations, further provide for
administrative penalties which may be imposed and recovered by
the Bank without recourse to a court hearing:
( a ) upon a credit or financial institution, as the case may
be, where the institution -
(i) contravenes or fails to comply with a reserve
deposit requirement as may be contained in any
directive issued under the provisions of article
37; and
(ii) contravenes or fails to comply with the
provisions of article 49A;
( b ) upon any body corporate where the offences referred
to in articles 45 to 49 are committed for their benefit
by any person, acting either individually or as part of
an organ of the body corporate, who has a senior
position within the body corporate, on the basis of -
(i) a power of representation of the body corporate,
or
(ii) an authority to take decisions on behalf of the
body corporate, or
                     CENTRAL BANK OF MALTA                    [ CAP. 204.        23
(iii) an authority to exercise control within the legal
person,
as well as for aiding or acting as accessory in the
commission of such offences or the attempted
commission of such offences; and
( c ) upon any body corporate where the lack of supervision
or control by the person referred to in paragraph ( b )
has rendered possible the commission of an offence
referred to in the same paragraph for the benefit of that
body corporate by a person under its authority.
Recovery of 
administrative 
penalties.
Added by:
XVII. 2002.100.
52B. (1) Where by virtue of regulations made under article
52A, the Bank imposes an administrative penalty, it shall so notify
the person on whom the penalty is being imposed by means of a
notice in writing.
(2) Where an administrative penalty is imposed on a reporting
agent in respect of a breach of the provisions referred to in article
52A(2)( a ), 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 and:
( a ) such person does not appeal to the Financial Services
Tribunal (hereinafter in this article ''the Tribunal'') in
accordance with the provisions of article 36A 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 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 subarticle (4) shall apply.
Cap. 12.
(4) A notice as is referred to in subarticle (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 Organisation and Civil Procedure.
Bye-laws.
Substituted by:
XVII. 2002.100.
53. The Board may make bye-laws not inconsistent with this
Act, for the good order and management of the Bank.
Exemption from 
income tax and 
duty on documents 
and transfers. 
Substituted by: 
XXVI.1994.34.
54. 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.
  24        CAP. 204. ]               CENTRAL BANK OF MALTA
Maintenance of 
orderly conditions 
in the capital 
market. 
Amended by: 
LVIII. 1974.68; 
L.N.148 of 1975; 
XIII.1983.5. 
55. Repealed by article 35 of Act XXVI of 1994. *
*Act XXVI of 1994: Transitory Provision.
   36.  The provisions of this Act (Act XXVI of 1994) amending the principal Act
(Chapter 204) in matters concerning the office of the Deputy Governor shall apply
only to persons appointed to that office after the date of the coming into force of the
provisions of this Act and, in respect of a person appointed before that date, the
provisions of the principal Act on the matters aforesaid shall continue to apply as they
were in force prior to such amendments.
