Practice Areas > Investment Services, Fintech & Capital Markets > Banks & Credit Institutions
Overview
Malta enjoys a reputable and robust banking sector. The World Economic Forum has ranked Malta as the 13th out of 143 countries in relation to the soundness of its banking system. During the 2008 economic crisis, the industry demonstrated a solid resiliency and managed, largely as a result of the level of prudential supervision exercised by the Malta Financial Services Authority, to continuously maintain excess liquidity and significant diversified asset holdings.
Legal Basis
Banks and credit institutions in Malta are regulated by the Banking Act which defines the business of banking as the business of a person who regularly accepts deposits of money from the public for the purpose of employing such money in whole or in part by lending to others or otherwise investing for the account and at the risk of the person accepting such money. The relevant legislation implements EU Directives and is based on Basel Principles.
Passporting Rights
A bank or credit institution licensed in Malta by the Malta Financial Services Authority enjoys passporting rights to any EU Member State. This means in effect that such bank or credit institution has the right to establish a branch or to provide services in any other Member State without requiring any further authorisation or licensing. The right to ‘extend’ a Malta licence to other Member States is exercised by means of a simple notification to the Malta Financial Services Authority in accordance with the relevant provisions of the Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions.
This passporting right coupled with the relatively low costs for set-up, the availability of professional services, the possibility of enhancing tax efficiency and the emergence of Malta as a hub for wealth b, funds and financial services renders Malta one of the most attractive jurisdictions for the licensing of operations intending to provide banking services both locally and internationally.
How we can assist.
Gonzi & Associates, Advocates is able to assist you with all aspects relating to the licensing of a bank or credit institution.
- Malta Company incorporation and registration;
- Collection & preparation of documentation necessary for submission of a credit institution licence application, including internal policies;
- Assistance in the drafting of the company’s business plan for submission with the licence application;
- Drafting website T&Cs relevant to your services;
- Assisting in the engagement of Key Functionaries;
- Providing post-registration follow-up assistance, including advising on applicable compliance requirements;
- Registration of your trade mark in the Malta trade mark register and/or the register of the European Union Intellectual Property Office;
- Providing general legal advice and assistance as required.
The Process
Specialising
Lawyers
Augusto Quintano joined the Firm in 2015. He graduated with a Doctor of Laws at the University of Malta after completing his final year of his studies in 2016. He has then furthered his studies by obtaining a Masters in Law in 2020, with a in-depth focus on financial services regulation. Augusto’s main legal focus is in fact financial services law and heads the Firm’s Financial Services Department. He also assists clients in matters of regulatory compliance, contractual law and gaming matters. His expertise leads him to regularly serve on Boards of key market players in the jurisdiction, offering guidance and advice therein.
Augusto’s other interests include planning road trips, movie nights, and playing the violin with various ensembles.
Education
2020: Master of Laws, University of London
2018: Post Graduate Diploma in Laws, University of London
2016: Doctor of Laws, University of Malta
2016: Maltese Financial Regulations, Institute of Financial Services
2014: Diploma of Notary Public, University of Malta
2013: Bachelor of Laws, University of Malta
Professional Experience
2020: Senior Associate, Gonzi & Associates, Advocates
2017: Associate Lawyer, Gonzi & Associates, Advocates
2015: Legal Trainee, Gonzi & Associates, Advocates
Mark Farrugia joined the Firm in 2020. He attained a Bachelor of Laws from the University of Malta in 2020, following the submission of the dissertation entitled “Music Copyright Issues Concerning Joint Authorship.” Mark subsequently graduated with a Master of Advocacy from the University of Malta after completing his final year of studies in 2021 and was admitted to the Maltese bar in 2022.
Mark's focus with the law firm is on Intellectual Property Law, assisting clients with the registration and protection of trademarks, as well as Financial Services, amongst which he assists clients with licensing and other regulatory requirements.
Education
2021: Master of Advocacy, University of Malta
2020: Bachelor of Laws (Honours), University of Malta
Professional Experience
2021: Associate Lawyer, Gonzi & Associates, Advocates
2020: Legal Trainee, Gonzi & Associates, Advocates
2020: Junior Legal Assistant, Malta Financial Services Authority
2019: Legal Intern, Malta Business Registry
Latest News
MFSA Guidance for MLROs in the Financial Services Sector
On 14 March 2024, the Malta Financial Services Authority (the "MFSA") published a guidance note entitled 'A Guidance for Money Laundering Reporting Officers in the Financial Sector' (the "Guidance") motivated…
Read More