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Various Laws (Amendment) Act, 2003 (Act No. Ix Of 2003) (L.N. 427 Of 2003 )

VARIOUS LAWS (AMENDMENT) ACT, 2003 (ACT NO. IX OF 2003)
Commencement notice

Commencement

Act No. IX of 2003.

IN exercise of the powers conferred by articles 1(2), 29 (2) and
35 of the Various Laws (Amendment) Act, 2003, hereinafter referred to as “the Act”, the Minister of Finance and Economic Affairs has established the following dates as the dates on which the following provisions of the Act shall come into force>-
Act<
(a) with immediate effect in respect of article 35 of the
(b) as from the 1st January, 2004, in respect of articles
30 to 34 of the Act, other than paragraphs (c) and (d) in the definition “resident” in article 2 and the proviso to sub-article (1) of article 4 of Cap. 233 in article 33 of the Act< and
(c) as from the 1st May, 2004, in respect of article 33 of the Act as relating to paragraphs (c) and (d) in the definition “resident” in article 2 and the proviso to sub-article (1) of article 4 in Cap.
233.

Cap. 233.

Cash gift#family subsistence allowance.

Current accounts with overseas credit institutions.

The Minister of Finance and Economic Affairs has also provided that all restrictions and, or obligations existing under the Exchange Control Act, as in force before the issue of this notice and listed hereunder, shall remain in force for such time as the said Minister shall by notice in the Gazette prescribe, and the provisions of the Exchange Control Act as in force before the issue of this notice shall continue to apply with respect to any such restriction or obligation>-
1. The maximum limit on payments by residents in connection with cash gifts or family living expenses is Lm30,000 per adult person each year.
2. The opening and maintenance of current accounts by residents with overseas credit institutions is not permitted. Financial services companies which provide investment services to their clients are permitted to open and maintain clients’ current accounts with overseas credit institutions.
3. The maximum limit on foreign currency holdings (cash#cheques) that a resident is exempted from surrendering to an institution licensed to carry on the business of foreign exchange (formerly referred to as an authorised dealer) is the equivalent of Lm50,000.
4. The holding of foreign currency current accounts by natural persons with local credit institutions is permitted subject to the following conditions>
(i) that funds deposited are already denominated in foreign currency< and
(ii) the maximum aggregate balance in such accounts does not exceed the equivalent of Lm50,000.
5. The holding of foreign currency accounts (current, savings, fixed) by companies#retail outlets with local credit institutions is permitted subject to the following conditions>
(i) that funds deposited are already denominated in foreign currency< and
(ii) balances may only be used to effect overseas payments in connection with business costs.
Agents who receive payments in foreign currency from local customers for import of goods and services may deposit such funds into foreign currency accounts with local credit institutions. However, such receipts have to be remitted to the foreign counterparty company within a month of receipt.
6. While foreign portfolio investments are not subject to any quantitative limit, residents are not permitted to place funds in portfolio assets with a maturity period of less than six months.
7. Residents are not permitted to extend financial loans to non- residents for periods of less than six months.
8. Residents are not permitted to borrow in foreign currencies from resident or non-resident sources for periods of less than six months.
9. Fund investment schemes which collect funds in Maltese lira from residents with the specific aim of investing such funds in Maltese lira-denominated assets are not permitted to maintain foreign currency assets in excess of 15% of their shareholders’ funds.
B 5479

Foreign currency holdings – resident (natural person).

Foreign currency current accounts with local credit institutions – resident (natural person).

Foreign currency accounts with local credit institutions – companies#retail outlets.

Foreign portfolio investment.

Financial loans by residents to non- residents.

Financial loans to residents in foreign currency.

Investment by local fund investment schemes.

B 5480

Contracts with non- resident life insurance companies.

Contracts with non- resident non-life insurance companies.

Cap. 403. Cap. 104.

Spot #forward currency transactions.

Repatriation of export proceeds.

Issue, acquisition, sale and redemption of unlisted

securities registered in Malta – non- residents.

Cap. 123. Cap. 234.

10. Residents are not permitted to enter into life insurance contracts with non-resident life insurance companies except in cases where the policy of insurance provides solely for the payment of a sum of money or other consideration upon the occurrence of death within a period which is specified in the policy.
11. Residents are not permitted to enter into non-life insurance contracts involving motor vehicle insurance with non-resident companies (that is any premium in terms of Group 2 of Part II of the Third Schedule to the Insurance Business Act, which provides for policies of insurance issued by an authorised insurer as defined in the Motor Vehicles Insurance (Third Party Risks) Ordinance.
12. Institutions licensed to carry on the business of foreign exchange are not permitted to enter into spot#forward contracts relating to capital account transactions where funds in Maltese lira borrowed by the resident or non-resident counterparty are used in the transaction.
13. Residents undertaking export transactions are not permitted to retain export proceeds in accounts with foreign credit institutions. They are however permitted to deposit such proceeds in foreign accounts with local credit institutions.
14. Applications by non-residents for the issue, acquisition, sale and redemption of securities not listed on the Malta Stock Exchange in local companies established, or to be established, in Malta have to be cleared by the Registrar of Companies at the Malta Financial Services Authority. This procedure does not apply to companies as defined in article 2 of the Income Tax Act, (that is, international holding#trading companies) and to companies which own a vessel registered under the Merchant Shipping Act, and where the resident participation does not exceed 20%.

Ippubblikat mid-Dipartiment ta’ l-Informazzjoni (doi.gov.mt) — Valletta — Published by the Department of Information (doi.gov.mt) — Valletta

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

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