# Malta - United States Department of State

- Malta HomeReportsBureau of Democracy, Human Rights, and Labor2023 Country Reports on Human Rights Practices&#8230;Malta				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Country Reports on Human Rights Practices: Malta																																					Bureau of Democracy, Human Rights, and Labor																																																																																							Download Report																																																							Translations																																																																 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															Section 1. Respect for the Integrity of the Person																																																									a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																																											b. Disappearance																																																																											c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses																																																																			Prison and Detention Center Conditions																																																																																																																		d. Arbitrary Arrest or Detention																																																																			Arrest Procedures and Treatment of Detainees																																																																																																																		e. Denial of Fair Public Trial																																																																			Trial Procedures																																																								Political Prisoners and Detainees																																																																																																																		f. Transnational Repression																																																																											g. Property Seizure and Restitution																																																																											h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																																																	Section 2. Respect for Civil Liberties																																																									a. Freedom of Expression, Including for Members of the Press and Other Media																																																																			Internet Freedom																																																																																																																		b. Freedoms of Peaceful Assembly and Association																																																																											c. Freedom of Religion																																																																											d. Freedom of Movement and the Right to Leave the Country																																																																											e. Protection of Refugees																																																																																	Section 3. Freedom to Participate in the Political Process																																																									Elections and Political Participation																																																																																	Section 4. Corruption in Government																															Section 5. Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights																															Section 6. Discrimination and Societal Abuses																																																									Women																																																																											Systemic Racial or Ethnic Violence and Discrimination																																																																											Children																																																																											Antisemitism																																																																											Trafficking in Persons																																																																											Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																																											Persons with Disabilities																																																																																	Section 7. Worker Rights																																																									a. Freedom of Association and the Right to Collective Bargaining																																																																											b. Prohibition of Forced or Compulsory Labor																																																																											c. Prohibition of Child Labor and Minimum Age for Employment																																																																											d. Discrimination (see section 6)																																																																											e. Acceptable Conditions of Work																																																																																																							EXECUTIVE SUMMARY				There were no significant changes in the human rights situation in Malta during the year.There were no credible reports of significant human rights abuses.The government took credible steps to identify and punish officials who may have committed human rights abuses.																														Section 1.													 Respect for the Integrity of the Person												    																																																a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings										There were no reports the government or its agents committed arbitrary or unlawful killings, including extrajudicial killings, during the year.In May, the Public Interest Litigation Network filed a constitutional case claiming human rights violations on behalf of the relatives of Mamadou Kamara, who died in 2012 while in custody of the country’s detention services and armed forces.  The relatives’ lawyers claimed a breach of Article 2 of the European Convention on Human Rights and Article 33 of the Constitution of Malta, which protect the right to life.  The case continued at year’s end.																																				b. Disappearance										There were no reports of disappearances by or on behalf of government authorities.																																				c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses										The constitution and law prohibited such practices.  There were credible reports government officials subjected migrants to inhuman and degrading conditions in detention centers.  Impunity was not a significant problem in the security forces.																Prison and Detention Center Conditions						Prison and detention center conditions were poor.  Reports persisted of poor sanitation in migration detention centers.Abusive Physical Conditions:  In May, the Monitoring Board for Detained Persons condemned the conditions at the Safi detention center, highlighting poor hygiene and management.Administration:  Authorities allowed prisoners and detainees to submit uncensored complaints to judicial officials and to request investigation of credible allegations of inhuman conditions.  Authorities investigated such complaints, and complainants sought redress in the courts.Independent Monitoring:  The government generally permitted visits to prisons and detention centers by independent domestic and international human rights observers and media.  Nongovernmental organizations (NGOs) reported the government restricted visits to refugee and migrant detention centers and their ability to provide services was very limited.																										d. Arbitrary Arrest or Detention										The constitution and law prohibited arbitrary arrest and detention and provided for the right of any person to challenge the lawfulness of their arrest or detention in court.  The government generally observed these requirements.																Arrest Procedures and Treatment of Detainees						By law police were required to either file charges or release a suspect within 48 hours.  In all cases authorities had to inform detainees of the grounds for their arrest.  Police generally respected these requirements.  During the 48-hour detention period and prior to the initial interrogation, authorities allowed arrested persons access to legal counsel but did not permit visits by family members.  The state provided legal aid for arrested persons who could not afford a lawyer.  The law allowed police to delay access to legal counsel for up to 36 hours after arrest in certain circumstances, such as when exercising this right could lead to interference with evidence or harm to other persons.  After filing charges, authorities granted pretrial detainees’ access to both counsel and family.  A functioning bail system was in place.  The courts adjudicated applications for bail on a case-by-case basis and normally granted bail to citizens.																										e. Denial of Fair Public Trial										The constitution and law provided for an independent judiciary, and the government generally respected judicial independence and impartiality.																Trial Procedures						The constitution and law provided for the right to a fair and public trial, and the judiciary generally enforced this right.						Political Prisoners and Detainees						There were no reports of political prisoners or detainees.																										f. Transnational Repression										Not applicable.																																				g. Property Seizure and Restitution										Not applicable.																																				h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence										The constitution and law prohibited such actions, and there were no reports the government failed to respect these prohibitions.																																					Section 2.													 Respect for Civil Liberties												    																																																a. Freedom of Expression, Including for Members of the Press and Other Media										The constitution and law provided for freedom of expression, including for members of the press and other media, and the government generally respected this right.  An independent media, an effective judiciary, and a functioning democratic political system combined to promote freedom of expression, including for media members.Violence and Harassment:  In 2017 police charged three persons with the murder of investigative journalist Daphne Caruana Galizia in a car bombing near her home that same year.  In February 2021, one of the accused, Vince Muscat, pled guilty to all charges, including murder, and was sentenced to 15 years’ imprisonment and ordered to pay court expenses.  The other two charged, brothers Alfred and George Degiorgio, pled guilty to all charges on the day their trial began in October 14, 2022 and were sentenced to 40 years in prison.  The brothers subsequently appealed the conviction and sentence; the appeal was pending at year’s end.  In August 2021, prosecutors filed a bill of indictment charging business magnate Yorgen Fenech with the murder of Galizia.  Fenech entered a not guilty plea.  In 2019, police arrested Fenech as a “person of interest” in the killing, charging him with criminal conspiracy, being an accomplice in Galizia’s murder, and conspiring to commit murder.  Fenech denied the charges.  The compilation of evidence continued at year’s end.Censorship or Content Restrictions for Members of the Press and Other Media, Including Online Media:  Members of the press and civil society expressed concerns regarding the impact of defamation lawsuits on journalistic freedom and the editorial independence of media.Libel/Slander Laws:  The law allowed injured parties to sue before the civil courts for damages.  Print and broadcast journalists faced government lawsuits intended to harass and intimidate them.Actions to Expand Freedom of Expression, Including for Members of the Press and Other Media:  On July 12, parliament enacted the Artistic Expression (Enhancement) Bill.  The purpose of the law was to provide for the enhanced protection of artistic expression and in particular to avoid the misuse of the criminal justice system in suppressing expression.																Internet Freedom						The government did not restrict or disrupt access to the internet or censor online content.																										b. Freedoms of Peaceful Assembly and Association										The constitution and law provided for the freedoms of peaceful assembly and association, and the government generally respected these rights.																																				c. Freedom of Religion										See the Department of State’s International Religious Freedom Report at  https://www.state.gov/religiousfreedomreport/.																																				d. Freedom of Movement and the Right to Leave the Country										The law provided for freedom of internal movement, foreign travel, emigration, and repatriation, and the government generally respected these related rights.																																				e. Protection of Refugees										The government cooperated with the Office of the UN High Commissioner for Refugees and other humanitarian organizations in providing protection and assistance to refugees, returning refugees, asylum seekers, or stateless persons, as well as other persons of concern.Access to Asylum:  The law provided for the granting of asylum or refugee status, and the government had a system for providing protection to refugees.NGOs criticized the government’s approach to the rescue of seaborne migrants onboard vessels, mostly originating from North Africa.  NGOs accused the government of preventing these migrants from reaching the country’s search and rescue area and of coordinating with the European Border and Coast Guard Agency, Italy, and Libya to return migrants to Libya and Libyan detention centers, where they faced security and human rights threats, including a heightened risk of human trafficking.  Malta and Libya operated two centers &#8211; one in each country &#8211; to address irregular migration issues.Abuse of Refugees and Asylum Seekers:  In January, the European Court of Human Rights ruled the country should release seven children from a detention center.  The court directed the country to, “ensure that the applicants’ conditions are compatible with Article 3 of the [European Convention on Human Rights] and with their status as unaccompanied minors.”Durable Solutions:  In 2022, 43 persons availed themselves of International Organization for Migration’s Assisted Voluntary Return Restart Program in collaboration with authorities.  In collaboration with the EU, the Ministry for Home Affairs, Security, Reforms and Equality supported this program that provided the possibility of assisted voluntary return and reintegration in countries of origin available to third-country (non-EU) nationals.Temporary Protection:  The government provided temporary protection, known as “subsidiary” protection, to individuals who did not qualify as refugees.  In 2022, 172 persons were given subsidiary protection status.																																					Section 3.													 Freedom to Participate in the Political Process												    																						The constitution and law provided citizens the ability to choose their government in free and fair periodic elections held by secret ballot and based on universal and equal suffrage.																										Elections and Political Participation										Abuses or Irregularities in Recent Elections:  National elections in March 2022 were widely reported to be fair and free of abuses and irregularities.Participation of Women and Members of Marginalized or Vulnerable Groups:  Cultural and traditional barriers were obstacles to increased participation by women.  Women’s representation in the political sector was low.  Women accounted for 11 percent of ministerial positions.  In 2022, 10 women were elected to parliament during the general elections.  This triggered a gender-corrective mechanism through an amendment of the constitution to “ensure de facto equality between men and women in politics.”  As a result, 12 more women were added to parliament.The Office for Democratic Institutions and Human Rights (ODIHR) of the Organization for Security and Cooperation in Europe deployed an Election Expert Team to observe the March 26, 2022 general elections.  In its final report, ODIHR noted restrictions of the voting rights of individuals with disabilities, highlighting provisions preventing citizens with psychosocial disabilities from voting and ensuring the right of persons with disabilities to vote by secret ballot in elections, and potential influence on the public broadcaster’s editorial independence.																																					Section 4.													 Corruption in Government												    																						The law provided criminal penalties for corruption by officials, and the government generally implemented the law effectively.  There were isolated reports of government corruption.Corruption:  On February 24, the courts annulled a concession agreement the government had originally reached in 2015 with Vitals Global Healthcare, which was taken over by Steward Health Care in 2019, for the management of three government hospitals.  The courts determined the process was fraudulent at the outset and ordered the return of the three hospitals to the state.Before the killing of investigative journalist Daphne Caruana Galizia in 2017, she alleged in reporting that the then prime minister’s spouse was the ultimate beneficial owner of a Panamanian offshore account connected to transactions involving Pilatus Bank.  Caruana Galizia was also investigating separate government corruption allegations the prime minister’s Chief of Staff, Keith Schembri, and former Energy Minister Konrad Mizzi took part in a €1.8 million ($1.95 million) kickback scheme related to an energy deal with the consortium Electrogas.  Both Schembri and Mizzi resigned in 2019.  2021, police charged Schembri with money laundering, fraud, and corruption.  The charges remained pending.For additional information concerning corruption in the country, please see the Department of State’s Investment Climate Statement for the country, and the Department of State’s International Narcotics Control Strategy Report, which includes information on financial crimes.																											Section 5.													 Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights												    																						A variety of domestic and international human rights groups generally operated without government restriction to monitor or investigate human rights conditions or cases and publish their findings.  Government officials were often cooperative and responsive to the views of these groups.Government Human Rights Bodies:  The ombudsman was empowered to investigate complaints regarding the activities of governmental bodies, including activities affecting human rights and problems involving prisoners and detainees.  The president appointed the ombudsman with the consent of two-thirds of the House of Representatives.  The ombudsman investigated complaints only when administrative or judicial remedies were not available.  The ombudsman had adequate resources, operated independently, and was effective.  In responding to complaints, the ombudsman submitted recommendations to the public entity responsible for addressing the complainant’s grievance.  The ombudsman had no power to impose or compel a remedy, but relevant public bodies accepted most of the ombudsman’s recommendations.The House of Representatives’ Standing Committees on Foreign and European Affairs and on Social Affairs had responsibility for human rights matters.  The committees met regularly and normally held open hearings, except during closed hearings for national security reasons.  For the most part, the committees had a reputation for independence, integrity, credibility, and effectiveness, with legislation enacted in the areas under their purview enjoying widespread public support.The National Commission for the Promotion of Equality and the Commission for the Rights of Persons with Disabilities operated effectively and independently with adequate resources and oversaw human rights matters related to gender equality and disabilities.  The prime minister, on the advice of or in consultation with the minister responsible for each entity, appointed members to these commissions, who served for terms of two and three years, respectively.  They could be reappointed at the end of their term.																											Section 6.													 Discrimination and Societal Abuses												    																																																Women										Rape and Domestic Violence:  Rape of a person, regardless of gender, including spousal rape, was a criminal offense, and the government effectively prosecuted such crimes.  Through June, eight persons faced rape charges in court.  The law criminalized domestic violence and treated the offense as an aggravating circumstance of other crimes such as bodily harm, rape, and harassment, and the government generally enforced the laws prohibiting it.  Sentences for conviction ranged from three months to 20 years in prison.A government-commissioned report by a retired judge published in January showed administrative failures by the state in the case of the death of a woman, Bernice Cachia.  The estranged husband was charged with her death under the femicide law.A Gender-Based Domestic Violence Unit under the Vice Squad was based at police general headquarters.  The unit, which included three police inspectors and 18 staff members, was solely dedicated to addressing domestic violence problems and was open 24 hours a day, seven days a week.  On May 31, parliament enacted the Domestic Violence Prevention Bill permitting persons to inquire if their partner had previous reports of domestic violence filed with police.Discrimination:  The law provided for the same legal status and rights for women as for men, including in matters related to family, religious, personal status, labor, property, nationality, and inheritance laws.  Redress in the courts was available for gender discrimination, and the government enforced the law effectively.Women were unable to work in the same industrial jobs in the construction sector as men.  While women constituted a growing proportion of graduates of higher education and of the workforce, they were underrepresented in management and generally earned less than men for equal or similar work.  Eurostat reports showed the gender pay gap in 2021, the most recent period for which data were available, was 10.5 percent.  In 2021, the employment rate for women was 69 percent, compared with 83 percent for men.Reproductive Rights:  There were no reports of coerced abortion or involuntary sterilization on the part of government authorities.The country’s ban on abortions allowed no exceptions for pregnancies resulting from rape or incest; however, the law permitted interventions that could result in the cessation of a pregnancy, in limited circumstances, without doctors being criminally liable.  In June, parliament unanimously amended the criminal code to exempt doctors from criminal responsibility in cases of medical interventions that could result in the cessation of a pregnancy, if such interventions served to save the life of a mother or to protect her health, or if she were suffering from a complication that could put her life at immediate risk or her health in grave jeopardy.  In the latter case, three consultants would need to agree the treatment was necessary.  In both cases the fetus could not be viable.  The government provided limited access to sexual and reproductive health services for survivors of sexual violence.  Emergency contraception and postexposure prophylaxis were available as part of clinical management of rape.  By year’s end, the government had not implemented a plan, announced in 2022, to provide free contraception.																																				Systemic Racial or Ethnic Violence and Discrimination										The constitution, criminal code, and labor laws protected members of racial or ethnic minority groups from violence and discrimination, and the government enforced them effectively.  The Human Rights Directorate within the Ministry of Justice, Equality, and Governance had a mandate to promote equality and nondiscrimination and included an antiracism unit.The National Commission for the Promotion of Equality received discrimination complaints, which it investigated and referred to police as appropriate.  The commission received six claims of alleged workplace discrimination through September.																																				Children										Child Abuse:  There were laws against child abuse that authorities enforced.  The government reported no convictions for sexual abuse of children.Child, Early, and Forced Marriage:  The legal minimum age of marriage was 18, although persons ages 16-17 could marry with the consent of parents, legal guardians, or courts.Child marriage was not specifically listed as a crime but was punishable under various provisions of the law.  In January, reports emerged of an underage girl promised for marriage by her parents in exchange for €5,000 ($5,405).Sexual Exploitation of Children:  The law prohibited the commercial sexual exploitation of children, including child sex trafficking and child pornography, and authorities generally enforced the law.  The production of child pornography was prohibited; conviction was punishable by imprisonment for five to 12 years.  Conviction of possession of child pornography was punishable by three to four years’ imprisonment.  The minimum age for consensual sex was 16.  Child trafficking was a criminal offense.Conviction of rape of an underage person was punishable by six to 20 years’ imprisonment.																																				Antisemitism										The Jewish community numbered approximately 400 persons.  There were no known reports of antisemitic incidents.																																				Trafficking in Persons										See the Department of State’s Trafficking in Persons Report at  https://www.state.gov/trafficking-in-persons-report/.																																				Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics										Criminalization:  The law did not criminalize consensual same-sex conduct between adults, cross-dressing, or other sexual or gender characteristic-related behaviors.Violence and Harassment:  There were no known reports police or other government agents incited, perpetrated, condoned, or tolerated violence against lesbian, gay, bisexual, transgender, queer, or intersex (LGBTQI+) individuals, and there were no known instances of nonstate actor violence targeting LGBTQI+ persons.Discrimination:  The constitution and law prohibited discrimination by state and nonstate actors based on sexual orientation, gender identity or expression, or sex characteristics, including discrimination against LGBTQI+ persons in housing, employment, nationality laws, and access to government services, including health care.  The law recognized LGBTQI+ couples and their families and granted them rights equal to rights of other persons.  The government enforced these laws.Availability of Legal Gender Recognition:  Adults and children older than 16 could update their gender markers on identity documents through simple filing of an affidavit with a notary.  An “X” gender identification was available on government-issued identification documents.Involuntary or Coercive Medical or Psychological Practices:  Unnecessary medical interventions performed without consent on intersex individuals were illegal, with penalties of up to five years in prison or a fine, a prison term of one to five months, or both.  In January, a man was charged with breaching the so-called conversion therapy ban due to comments he made during an online discussion.In March, parliament amended the Affirmation of Sexual Orientation, Gender Identity and Gender Expression Act with a clarification of what constituted advertising of conversion practices, which was considered a criminal offense.Restrictions of Freedom of Expression, Association, or Peaceful Assembly:  There were no laws or other known restrictions on individuals speaking or media reporting on LGBTQI+ matters.  There were no laws or other known restrictions on the ability of LGBTQI+ individuals or organizations to assemble in public or private or to form associations, or to legally register or convene events.  The country hosted EuroPride September 7 to September 17.																																				Persons with Disabilities										By law persons with disabilities had equal access to education, employment, health services, public buildings, and transportation, and the government effectively enforced legal provisions regarding discrimination in the public and private sectors against persons with physical, sensory, intellectual, and mental disabilities.  The law required accessibility to buildings, information, and communication.  While the government made efforts to provide accessibility, many historical buildings were inaccessible due to limited structural adaptability.  Authorities investigated cases of violence or abuse against persons with disabilities.  The Commission for the Rights of Persons with Disability and the government provided information and communication on disability concerns in accessible formats.From January to August, the Commission for the Rights of Persons with Disability opened 265 cases of alleged discrimination related to employment, education, housing, access, provision of goods and services, health, and other areas.																																					Section 7.													 Worker Rights												    																																																a. Freedom of Association and the Right to Collective Bargaining										The law provided for the rights of most workers to form and join independent unions, bargain collectively, and conduct legal strikes.  A trade union could register an industrial dispute with an employer, at which point the trade union and employer entered into negotiations.  In the absence of an agreement, both parties were free to resort to industrial action.  The trade union could take industrial actions, which included slowdowns, wildcat strikes, work-to-rule action, strike action for a defined period, or any other industrial action the union might deem necessary.  The employer could use a “lockout” to protect its interests.The law prohibited antiunion discrimination and provided for the reinstatement of unfairly dismissed workers, including for legal, nonviolent union activity.  Workers had a right to seek redress for antiunion dismissals, although procedures to seek such redress were unclear for certain categories of public sector workers.  There were no reports workers were dismissed for union activities.Members of the military and law enforcement personnel could join a registered trade union, but the law prohibited strikes by this category of workers.  In April 2022, the Police Union filed a constitutional case that would give the police force the right to strike.  The case remained underway at year’s end.  The law did not explicitly prohibit acts of interference by worker or employer organizations in one another’s activities.  According to the International Labor Organization, compulsory arbitration limited collective bargaining rights.  Arbitration did not take place during the year.The government effectively enforced laws protecting freedom of association, collective bargaining, and the right to strike for workers.  Penalties were commensurate with those for other laws involving denials of civil rights, such as discrimination.  The courts regularly handed down prescribed fines to perpetrators.  Administrative and judicial procedures were subject to lengthy delays and appeals.Both the government and employers generally respected these rights, and workers freely exercised them during the year.  There were no reports of antiunion discrimination or other forms of employer interference in union activities.  Trade unions and employers’ organizations could both refer a dispute to the Industrial Tribunal, but until the tribunal decided on an award, both parties generally refrained from taking further action.																																				b. Prohibition of Forced or Compulsory Labor										See the Department of State’s annual Trafficking in Persons Report at  https://www.state.gov/trafficking-in-persons-report/.																																				c. Prohibition of Child Labor and Minimum Age for Employment										The law prohibited all of the worst forms of child labor as well as employment of children younger than 16 in all sectors.  There were no confirmed reports during the year of the worst forms of child labor.  The director general for educational services in the Ministry of Education and Employment could grant an exemption for employment only after determining it would not harm the health or normal development of the child.  Children granted an exemption could work up to 40 hours per week.  Children granted an exemption were not allowed, however, to carry out any night duties or perform work that could be regarded as harmful, damaging, or dangerous to a young person.  Children granted an exemption to work in certain areas such as manufacturing, heavy plant machinery, and construction were required to work under supervision.The government generally enforced the law in most formal sectors of the economy.  Penalties were commensurate with those for other analogous serious crimes, such as kidnapping.  Penalties were regularly applied against violators.  Jobs Plus, a government entity under the Ministry for Education and Employment, was responsible for labor and employment matters and summer employment of underage youth allowed in businesses operated by their families.  No assessment was available on the effectiveness with which Jobs Plus monitored the unregistered employment of children as domestic employees and restaurant workers.																																				d. Discrimination (see section 6)																																														e. Acceptable Conditions of Work										Wages and Hour Laws:  The country had a national weekly minimum wage above the poverty income level.  The law mandated a standard workweek of 40 hours, but the norm was 43 or 45 hours in certain occupations such as in health care, airport services, and civil protective services.  The law prohibited excessive compulsory overtime, and employers could not oblige employees to work more than 48 hours per week, including overtime.Occupational Safety and Health:  The government set occupational safety and health (OSH) standards, and such standards were up to date and appropriate for the main industries in the country.  Workers could remove themselves from situations dangerous to health or safety without jeopardizing their employment.  The employer was responsible for ensuring and implementing safety measures at the workplace.  The government proactively identified unsafe conditions and responded to workers’ OSH complaints.The law also required contractors to engage and remunerate project supervisors at constructions sites who were responsible for issuing health and safety reports and setting safety measures.  Project supervisors exercised limited authority, however, and had no power to enforce health and safety measures.Industrial accidents occurred mostly in the construction, manufacturing, transportation, and storage sectors.  Authorities conceded there were unsafe working conditions in some sectors.  Workers in the informal economy were more likely to face hazardous or exploitive working conditions.  In July, the government launched a public inquiry into health and safety standards in the construction industry following the death of a young worker at a construction site.  Authorities criminally charged five persons in connection with the death; the case was pending at year’s end.Wage, Hour, and OSH Enforcement:  The government generally enforced minimum wage and hours of work requirements effectively in the formal economy, and penalties for violations were commensurate with those for crimes such as negligence.  Penalties were regularly applied against violators.The Department of Industrial and Employment Relations was responsible for enforcement of wage and hour laws.  Inspectors had the authority to make unannounced inspections at places of work and initiate sanctions.  The number of inspectors was deemed to be insufficient to enforce compliance.The Occupational Health and Safety Authority, a government entity composed of representatives of the government, unions, and employers, conducted regular inspections at worksites and cited several offenders.  Inspectors had the authority to make unannounced inspections and to initiate sanctions, including stopping work they deemed to be unsafe.  Nevertheless, enforcement of health and safety standards was inconsistent, particularly in the construction industry.  The number of OSH inspectors was not sufficient to enforce compliance.  Penalties for violations were commensurate with those for similar crimes, such as fraud or negligence.  Penalties were regularly applied against violators.Authorities did not stringently enforce standards in the informal economy, which made up approximately 5 percent of the workforce and encompassed various sectors of working society, including day laborers and self-employed individuals.  Workers in the informal economy were not legally covered by wage, hour, OSH, or other labor laws and labor inspections, but they could file complaints against companies that failed to provide a safe work environment.																																				    							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Respect for the Integrity of the Person																																							a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings																																																						b. Disappearance																																																						c. Torture and Other Cruel, Inhuman, or Degrading Treatment or Punishment, and Other Related Abuses																																																				Prison and Detention Center Conditions																																																																																				d. Arbitrary Arrest or Detention																																																				Arrest Procedures and Treatment of Detainees																																																																																				e. Denial of Fair Public Trial																																																				Trial Procedures																																												Political Prisoners and Detainees																																																																																				f. Transnational Repression																																																						g. Property Seizure and Restitution																																																						h. Arbitrary or Unlawful Interference with Privacy, Family, Home, or Correspondence																																																			Section 2. Respect for Civil Liberties																																							a. Freedom of Expression, Including for Members of the Press and Other Media																																																				Internet Freedom																																																																																				b. Freedoms of Peaceful Assembly and Association																																																						c. Freedom of Religion																																																						d. Freedom of Movement and the Right to Leave the Country																																																						e. Protection of Refugees																																																			Section 3. Freedom to Participate in the Political Process																																							Elections and Political Participation																																																			Section 4. Corruption in Government																Section 5. Governmental Posture Towards International and Nongovernmental Monitoring and Investigation of Alleged Abuses of Human Rights																Section 6. Discrimination and Societal Abuses																																							Women																																																						Systemic Racial or Ethnic Violence and Discrimination																																																						Children																																																						Antisemitism																																																						Trafficking in Persons																																																						Acts of Violence, Criminalization, and Other Abuses Based on Sexual Orientation, Gender Identity or Expression, or Sex Characteristics																																																						Persons with Disabilities																																																			Section 7. Worker Rights																																							a. Freedom of Association and the Right to Collective Bargaining																																																						b. Prohibition of Forced or Compulsory Labor																																																						c. Prohibition of Child Labor and Minimum Age for Employment																																																						d. Discrimination (see section 6)																																																						e. Acceptable Conditions of Work																																																									Tags																					Bureau of Democracy, Human Rights, and Labor																								Bureau of European and Eurasian Affairs																								Malta
- Secretary Blinken’s Meeting with Maltese Foreign Minister Borg HomeOffice of the SpokespersonPress Releases&#8230;Secretary Blinken’s Meeting with Maltese Foreign Minister Borg				hide		if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}																										Secretary Blinken’s Meeting with Maltese Foreign Minister Borg																																		Readout																														April 16, 2024																																							The below is attributable to Spokesperson Matthew Miller:&nbsp;Secretary of State Antony J. Blinken met today with Maltese Foreign Minister Ian Borg in Washington, DC.  Secretary Blinken expressed appreciation for Malta’s leadership as a Member of the United Nations Security Council and as Chair-in-Office of the Organization for Security and Co-operation in Europe, and in particular Malta’s continued efforts to support Ukraine.  Secretary Blinken and Foreign Minister Borg spoke about the challenges posed by the People’s Republic of China’s support for Russia’s defense-industrial base, which enables Russia to continue its full-scale invasion of Ukraine.  They discussed shared concerns about the humanitarian situation in Gaza, the urgent need to secure the release of hostages and protect civilians, and the importance of preventing the further spread of the conflict in the Middle East.  They explored opportunities to build on the already strong U.S.-Malta relationship.  						Tags																					Bureau of European and Eurasian Affairs																								Malta																								Office of the Spokesperson																								The Secretary of State
- Secretary Antony J. Blinken and Maltese Foreign Minister Ian Borg Before Their Meeting HomeOffice of the SpokespersonPress Releases&#8230;Secretary Antony J. Blinken and Maltese Foreign Minister Ian Borg Before Their Meeting				hide		if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}																										Secretary Antony J. Blinken and Maltese Foreign Minister Ian Borg Before Their Meeting																																		Remarks																														April 16, 2024																																							SECRETARY BLINKEN:&nbsp;Good afternoon, everyone. It’s a great pleasure to welcome Foreign Minister Borg here to the State Department, to Washington, and I want to say first how much we appreciate the leadership that Malta has shown leading the OSCE at a very, very challenging time, but doing it in a – I think a very effective way, and also, of course, on the UN Security Council, including in the presidency this month. So we have a lot to talk about, issues concerning both the OSCE and the UN, and also looking at ways to further strengthen and deepen cooperation between the United States and Malta. So Ian, it’s a pleasure to have you here today to continue our conversations.FOREIGN MINISTER BORG:&nbsp;Secretary of State Blinken, thank you for receiving me. It’s always a pleasure to have the opportunity discussing ongoing issues, the chair of OSCE, and also this very important week we have in the Security Council, but even more important, keep strengthening the excellent relationship and partnership we have between Malta and the United States. Thank you very much.SECRETARY BLINKEN:&nbsp;Thanks, everyone. Come on back.QUESTION:&nbsp;Mr. Secretary, any deliverables from the G7 meeting this week?SECRETARY BLINKEN:&nbsp;Stay tuned.						Tags																					Bureau of European and Eurasian Affairs																								Malta																								Office of the Spokesperson																																Organization for Security and Co-operation in Europe																															The Secretary of State
- Business Opportunities in Malta’s Offshore Renewable Energy Sector Bureau of Economic and Business AffairsDate and Time: Wednesday, January 17, 2024 at 11:00 am ESTHost: U.S. Ambassador Constance J. MilsteinTopic: Business Opportunities in Malta’s Offshore Renewable Energy SectorDescription: Join the State Department’s Direct Line webinar to learn about opportunities for U.S. companies to invest in and supply Malta’s offshore sector to increase the production, storage, and use of renewable energy.  This event will highlight commercial opportunities in developing offshore wind, solar, hydrogen, battery storage, and other commercial activities in a planned Exclusive Economic Zone (EEZ).  Decision makers and policy experts from Malta’s Ministry for the Environment, Energy and Enterprise, Energy and Water Agency, and InterConnect Malta will share information about public investment in upcoming projects.Presentation: Opening remarks from Ambassador MilsteinOpening remarks from Permanent Secretary Joseph Caruana, Ministry for the Environment, Energy and EnterprisePresentation from the Energy and Water Agency, Ing. Sandro LauriPresentation from Interconnect Malta, Ing. Christian SpiteriClosing remarks from Ing. Abigail Cutajar, Advisor &#8211; Energy and Climate Change
- Assistant Secretary Robinson’s Travel to Italy and Malta HomeOffice of the SpokespersonPress Releases&#8230;Assistant Secretary Robinson’s Travel to Italy and Malta				hide		if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}																										Assistant Secretary Robinson’s Travel to Italy and Malta																																		Media Note																														November 27, 2023																																							Assistant Secretary for the Bureau of International Narcotics and Law Enforcement Affairs (INL) Todd D. Robinson will travel to Italy and Malta from November 28 – December 1.In Italy, Assistant Secretary Robinson will participate in a panel discussion at the Partnership Forum that commemorates the 40th anniversary of the International Development Law Organization (IDLO). In Malta, he will highlight the strong cooperation between U.S. and Maltese authorities to counter trafficking and smuggling, and to maintain a strong financial regulatory environment. He will also meet with judicial, law enforcement, security, and media representatives in Malta promoting rule of law reforms. For further information, please contact&nbsp;INL-PAPD@state.gov&nbsp;or visit&nbsp;@StateINL&nbsp;on Twitter/X.						Tags																					Bureau of European and Eurasian Affairs																								Bureau of International Narcotics and Law Enforcement Affairs																																														Combating Drugs and Crime																																							Counternarcotics																																							Drug Trafficking																															Italy																																Law Enforcement																															Malta																																Narcotics																															Office of the Spokesperson																																Official International Travel
- Assistant Secretary O’Brien’s Travel to Malta, Italy, the Vatican, and the United Kingdom Office of the SpokespersonAssistant Secretary for European and Eurasian Affairs James O’Brien is traveling to Valletta, Malta; Rome, Italy; the Vatican; and London, United Kingdom October 26-31.  In Malta, he will attend Ukraine’s third meeting under the Peace Formula discussions, following similar meetings in Copenhagen and Jeddah.  Assistant Secretary O’Brien will also meet with Maltese government officials to discuss regional security, energy security, and the ongoing conflict between Israel and the terrorist organization Hamas.In Rome, the Vatican, and London, Assistant Secretary O’Brien will meet with Italian, Holy See, and UK government officials to discuss European security, Russia’s war of aggression against Ukraine, and PRC threats to the rules-based international order.  He will discuss the security situation in the Middle East and our shared support of Israel’s right to defend itself against terrorism.  He will also discuss the humanitarian situation in Gaza and our continued commitment to coordinating with partners in the region to ensure sustained and safe access to food, water, medical care, and other assistance required to meet humanitarian needs.  In Rome, he will also discuss Italy’s upcoming G7 presidency.
- Malta National Day Antony J. Blinken, Secretary of StateOn behalf of the Government of the United States of America, I congratulate the people of Malta as you celebrate 59 years of independence. The United States values its longstanding friendship with Malta, which started at the founding of our nation more than two centuries ago.We are grateful for Malta’s efforts in support of transatlantic and European values, including strong support for Ukraine and its sovereignty in the face of Russia’s aggression. We appreciate our increased cooperation to advance our mutual goals of peace, prosperity, and human rights since Malta joined the UN Security Council earlier this year, and we look forward to deepening our collaboration in the year to come.Best wishes and congratulations on this special day.
- Malta HomeReportsBureau of Economic and Business Affairs2023 Investment Climate Statements&#8230;Malta				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Investment Climate Statements: Malta																																																																																												 In this section										/																							EXECUTIVE SUMMARY																																													EXECUTIVE SUMMARY																															1. Openness To, and Restrictions Upon, Foreign Investment																																																									Policies Towards Foreign Direct Investment																																																																											Limits on Foreign Control and Right to Private Ownership and Establishment																																																																											Other Investment Policy Reviews																																																																											Business Facilitation																																																																											Outward Investment																																																																																	2. Bilateral Investment and Taxation Treaties																															3. Legal Regime																																																									Transparency of the Regulatory System																																																																											International Regulatory Considerations																																																																											Legal System and Judicial Independence																																																																											Laws and Regulations on Foreign Direct Investment																																																																											Competition and Antitrust Laws																																																																											Expropriation and Compensation																																																																											Dispute Settlement																																																																			ICSID Convention and New York Convention																																																								Investor-State Dispute Settlement																																																								International Commercial Arbitration and Foreign Courts																																																																																																																		Bankruptcy Regulations																																																																																	4. Industrial Policies																																																									Investment Incentives																																																																											Investment Aid																																																																											Access to Finance																																																																			Research and Development																																																								Incentives for Green Energy, Business Regeneration and Sustainability																																																																																																																		Foreign Trade Zones/Free Ports/Trade Facilitation																																																																											Performance and Data Localization Requirements																																																																																	5. Protection of Property Rights																																																									Real Property																																																																											Intellectual Property Rights																																																																																	6. Financial Sector																																																									Capital Markets and Portfolio Investment																																																																											Money and Banking System																																																																											Foreign Exchange and Remittances																																																																			Foreign Exchange																																																								Remittance Policies																																																																																																																		Sovereign Wealth Funds																																																																																	7. State-Owned Enterprises																																																									Privatization Program																																																																																	8. Responsible Business Conduct																																																									Climate Issues																																																																																	9. Corruption																															10. Political and Security Environment																															11. Labor Policies and Practices																															12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs																															13. Foreign Direct Investment Statistics																															14. Contact for More Information																																																					EXECUTIVE SUMMARY				The Republic of Malta is a small, strategically located country 60 miles south of Sicily and 180 miles north of Libya, astride some of the world’s busiest shipping lanes. A politically stable parliamentary republic with a free press, Malta is considered a safe, secure, and welcoming environment for American investors to do business.Malta joined the European Union in 2004, the Schengen visa system in 2007, and the Eurozone in 2008. With a population of about 533,286 and a total area of only 122 square miles, it is the EU’s smallest country in geographic size. The economy is based on services, primarily shipping, banking and financial services, online gaming, tourism, and professional, scientific, and technical activities. Manufacturing also plays a small, but important role. Maltese and English are the official languages.Given its central location in one of the world’s busiest trading regions, as well as its relatively small economy, Malta recognizes the important contribution that international trade and investment provides to the generation of national wealth.Prior to COVID-19, Malta was one of the EU’s fastest-growing economies. In 2022, real GDP growth is estimated to have reached 6.6 percent. In 2023, real GDP is forecast to grow at a slower pace, by 3.1 percent, following a wider economic slowdown in Malta’s main trading partners. In 2024, real GDP growth is expected to reach 3.7 percent, supported by net exports and growth in domestic demand. Malta’s unemployment rate stood at 3.1 percent in February 2022.The top three credit rating agencies assess Malta’s economy as stable. The current sovereign credit ratings are A-/A-2 with a stable outlook (S&amp;P); A2 with a stable outlook (Moody’s); and A+ with a stable outlook (Fitch).In 2020, the Government of Malta revamped its citizenship-by-investment program, which provides citizenship by naturalization to applicants (and their dependents). The new program still offers a track to citizenship through the introduction of a residency requirement before the acquisition of Maltese citizenship. The residency program offers two investment routes to acquire citizenship: i) individuals can apply after a one-year residency period if they invest €750,000 ($875,000) or more; or ii) applicants can opt to pay €600,000 ($700,500) if they apply after a three-year residency period.  IIP conditions include a €700,000 ($814,000) minimum for purchasing immovable property, or a €16,000 per year minimum for leasing immovable property (which must be retained for at least five years), and a €150,000 minimum for investment in stocks, bonds, or debentures. Applicants must also make a mandatory €10,000 ($11,600) philanthropic donation and pass a due diligence test before filing the application. In March 2022, the government suspended the processing of applications for nationals of the Russian Federation and Belarus. The suspension applies to both Malta&#8217;s citizenship-by-investment scheme as well as a residency through investment scheme, which must be renewed on a yearly basis.Table 1: Key Metrics and RankingsMeasureYearIndex/RankWebsite AddressTI Corruption Perceptions Index202254 of 171http://www.transparency.org/research/cpi/overview  Global Innovation Index202221 of 132https://www.globalinnovationindex.org/analysis-indicator  U.S. FDI in partner country ($M USD, historical stock positions)2021$2.3 billionhttps://apps.bea.gov/international/factsheetWorld Bank GNI per capita2021USD 30,760http://data.worldbank.org/indicator/NY.GNP.PCAP.CD  																																					1. Openness To, and Restrictions Upon, Foreign Investment						    																																																Policies Towards Foreign Direct Investment										Malta seeks foreign direct investment (FDI) to increase its rate of economic growth. Malta provides incentives to attract investment in high-tech manufacturing (including plastics, precision engineering, electronic components, automotive components, and health technologies such as pharmaceuticals manufacturing and biotechnology), information and communications technology (ICT), research and development (R&amp;D), aerospace, aviation maintenance and drones, education and training, registration of ships and aircrafts, transshipment and related service industries, finance services, and digital technologies, including artificial intelligence technologies, distributed ledger technology, innovative technologies, and digital gaming.Malta’s comparative advantages include membership in the EU, Eurozone, and Schengen Zone; proximity to European and North African markets; excellent telecommunications and transport connections; a fair and transparent business environment; a skilled, English-speaking labor force; and competitive wage rates (although the cost of living is comparable to many EU countries, labor costs are relatively low by comparison). Malta also offers financial, tax, and other investment incentives to attract FDI, although tax incentives, may change to reflect Malta’s agreement with the global tax harmonization outlined by the OECD. Foreign investment plays an integral part in the Government of Malta’s policies to reduce the role of the state in the economy and increase private sector activity. FDI has also played a key role in building Malta’s economic recovery post-pandemic as the country shaped an economic strategy based on tangible niche market opportunities that is helping it recover in the new economic conditions.Malta Enterprise, a government organization that promotes FDI in Malta, provides information to prospective investors, processes applications for government investment incentives, and serves as a liaison between investors and other government entities. The organization offers an attractive investment package for U.S. and other investors.The government seeks, as a top priority, companies operating in the following fields:High-end manufacturing;ICT, augmented and virtual reality, and digital gaming;Health technologies, medical equipment, pharmaceuticals, and emerging medical sectors including medical cannabis and medtech;Back office and regional support operations;Digital technologies including distributed ledger technology, artificial intelligence, innovative technologies, e-sports, and fintech;Knowledge-based service, including education and training and research and development;Logistics-based services, including marine technology, warehousing, and oil/gas services; andFilm industry (Malta has one of the few sets in the world for water/boating scenes).																																				Limits on Foreign Control and Right to Private Ownership and Establishment										Private foreign investors are free to make equity arrangements as they wish, from joint ventures to full equity ownership, however FDI in Malta is subject to Chapter 620 of the Laws of Malta, in line with EU regulation 2019/452 establishing a framework for the screening of foreign direct investments into the Union. The Government of Malta has set up a National Foreign Direct Investment Screening Office (NFDIS), the NFDIS’s scope and remit consists of screening new FDI projects, joint ventures with a foreign component, and the transfer of any shares and/or controlling interests in existing companies where the owner, titleholder, or ultimate beneficial owner originates from any country outside of the European Union.The sectors as per law which are subject to screening include the following:(a) critical infrastructure, whether physical or virtual, including energy, transport, water, health, communications, media, data processing or storage, aerospace, defense, electoral or financial infrastructure, and sensitive facilities, as well as land and real estate crucial for the use of such infrastructure;(b) critical technologies and dual use items, including artificial intelligence, robotics, semiconductors, cybersecurity, aerospace, defense, energy storage, quantum, nuclear technologies, nanotechnologies, and biotechnologies;(c) supply of critical inputs, including energy or raw materials and food security;(d) access to sensitive information, including personal data, or the ability to control such information; and(e) the freedom and pluralism of the media.The Government of Malta recognizes the right to private ownership in theory and in practice. Private entities are free to establish, acquire, and dispose of interests in business enterprises and engage in all forms of remunerative activity, following review by NFDIS if necessary. Many U.S. firms sell their products or services in Malta through licensing, franchise agreements, or similar arrangements. The government generally allows foreign companies to operate in merchandising areas, especially if they operate a licensing, franchising, or similar agreement through a local representative.It is the government’s stated policy not to allow public enterprises to operate at the expense of private entities. Some sectors, such as electricity generation, are also open to private sector participation. The government provides private enterprises with the same opportunities as public enterprises for access to markets and other business operations.																																				Other Investment Policy Reviews										In 2018, the Organization for Economic Co-operation and Development (OECD) released the fourth batch of peer review reports relating to the implementation of the Base Erosion and Profit Shifting (BEPS) minimum standard under Action 14 on improving tax dispute resolution mechanisms. Malta was among the assessed jurisdictions that were reviewed within the fourth batch which also included the following countries: Australia, Ireland, Israel, Japan, Mexico, New Zealand and Portugal.Overall, the report concludes that Malta meets almost all the elements of the Action 14 minimum standard, although several elements were not available for assessment at this stage due to Malta&#8217;s limited experience with the Mutual Agreement Procedure (MAP). Notwithstanding this limited experience, the Stage 1 peer review report indicate that Malta generally has the tools to be able to resolve MAP cases satisfactorily. Malta has indicated that it is committed to address any shortcomings identified in its Stage 1 peer review report.Full report can be accessed here: Making dispute resolution more effective &#8211; MAP peer review report, Malta (stage 1) : inclusive framework on BEPS Action 14																																				Business Facilitation										The Maltese Commercial Code provides for the establishment of several types of business entities according to the needs of an individual investor when setting up a company in Malta. The following are the available structures:Private limited liability companies;Public limited liability companies;General partnerships; andLimited partnerships.Foreign companies can also open subsidiaries or branch offices in Malta.When setting up a Maltese private company, the minimum share capital amount accepted is €1,165 ($1,300). The minimum for a public company is approximately €46,600 ($51,670), of which 25 percent must be deposited prior to registration. In case of private companies with an authorized share capital exceeding the minimum requirements, only 20 percent of the amount must be deposited.The maximum number of shareholders for limited liabilities companies is 50 and minimum is two (although a single-member company may also be registered under the Companies Act).The following are the main steps required to set up a company in Malta:Reserve a company name with the Maltese Business Registry;Draft the company’s memorandum and articles of association;Deposit the minimum share capital; andFile the application with the Malta Business Registry.The documents to be filed with the Malta Registrar of Companies are:The memorandum and articles of association;A confirmation of the company name reservation;The bank receipt confirming the share capital deposit; andPassport copies of the shareholders, directors, and company secretary.The Malta Business Registry (MBR) is responsible for the registration of new commercial partnerships, the registration of documents related to commercial partnership, the issuing of certified documentation including certificates of good standing amongst others, the reservation of company names, the collection of registration and other fees, the publication of notices, and the imposition and collection of penalties. MBR also conducts investigations of companies and maintains the company and partnership register.The memorandum must be presented to MBR, which offers an online system allowing users to register a company and submit commonly used forms (including a bank receipt as proof of payment of the initial share capital). All the statutory forms and notices are available on the website free of charge. MBR may also request that due diligence on the directors, shareholders, and/or beneficial owners be provided before proceeding with the incorporation. Upon incorporation, companies must pay a registration fee payable to MBR according to the amount of share capital held by the company.Once all the requirements above are satisfied, MBR will normally carry out incorporation of a company within two to three working days. Once incorporation is complete, MBR will publish a Certificate of Incorporation that will also display the company registration number.MBR website:  https://mbr.mt/ The Government of Malta also offers a one-stop shop for businesses – Business First – that assists companies with all processing of services and information to establish a company. Business First brings more than 50 essential services from various government departments and entities under one roof. It assists all enterprises based in Malta, including microenterprises, small and medium-sized enterprises (SMEs), larger companies, and foreign investors wishing to set up in the country.Business First website:  https://businessfirst.com.mt/ 																																				Outward Investment										TradeMalta, incorporated in 2014, is a public-private partnership between the government and the Chamber of Commerce to help Malta-based enterprises internationalize. TradeMalta is also the national organization tasked with marketing and coordinating both incoming and outgoing trade missions, promoting participation in international trade fairs, facilitating bilateral trade meetings, and researching new market opportunities. Although TradeMalta promotes outward investment and incentives for companies to seek international business, it does not provide financial incentives to set up FDI in other jurisdictions. This quasi-governmental organization is also tasked with maintaining business relationships with countries with whom Malta has a trading activity and dedicates its resources to identifying new markets, which are not considered traditional trading partners. (For the past three years, it has targeted North African countries for outgoing trade missions.)The organization provides specialized training programs in international business development and marketing and administers incentive schemes and internationalization programs aimed at both novice and experienced exporters.The government actively supports and promotes franchising, joint-ventures, and other forms of international business opportunities between Malta-based businesses and foreign companies.																																												2. Bilateral Investment and Taxation Treaties						    																						In 2010, the United States signed a bilateral taxation agreement with Malta, in December 2021 this was followed up by a competent authority arrangement (CAA) confirming the U.S. and Malta’s understanding of the meaning of pension fund for purposes of the United States–Malta income tax treaty (Treaty). Malta also benefits from treaties with investment provisions with ACP (African, Caribbean, and Pacific Group of States), Albania, Algeria, ANCOM (Andean Community), Armenia, ASEAN (Association of South-East Asian Nations), Azerbaijan, Bangladesh, Belarus, Bosnia and Herzegovina, Brazil, CACM (Central American Common Market), Cambodia, Cameroon, Canada, CARICOM (Caribbean Community), Chile, China, Colombia, Côte d&#8217;Ivoire, Ecuador, EFTA (European Free Trade Association), Egypt, ESA (Eastern and Southern Africa), GCC (Gulf Cooperation Council), Georgia, India, Iraq, Israel, Jordan, Kazakhstan, Republic of Korea, Kyrgyzstan, Laos, Lebanon, Libya, Macao S.A.R., MERCOSUR (Mercado Común Sudamericano), Mexico, Moldova, Mongolia, Montenegro, Morocco, Nepal, North Macedonia, OCT (Overseas Countries and Territories), Pakistan, the Palestinian Territories, Paraguay, Peru, Russia, SADC (Southern African Development Community), Serbia, Singapore, South Africa, Sri Lanka, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, Uruguay, Uzbekistan, Vietnam, and Yemen.The United States has maintained a Commerce and Navigation Treaty with Malta since 1815, initially in its capacity as a British colony, and, upon Malta&#8217;s independence in 1964, on its own behalf. The primary aim of this agreement is to ensure non-discriminatory treatment for bilateral trade and investments. Malta has similar investor protection accords with Albania, Austria, Belgium/Luxembourg Economic Union, Bulgaria, China, Croatia, Cyprus, Czech Republic, Egypt, France, Germany, Italy, Kuwait, Libya, Montenegro, Netherlands, Serbia, Slovakia, Slovenia, Sweden, Switzerland, Tunisia, Turkey, and the United Kingdom.There are currently no ongoing systematic tax disputes between the government and foreign investors. Malta is amongst the 141 countries and jurisdictions that agreed upon the OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS).																																		3. Legal Regime						    																																																Transparency of the Regulatory System										Malta has transparent and effective policies and regulations to foster competition. It has revised labor, safety, health, and other laws to conform to EU standards.All proposed regulations are published on a unified website, on the website of the relevant ministry or regulator, and directly distributed to interested stakeholders. Stakeholder engagement is currently required for all subordinate regulations as part of the Regulatory Impact Assessment (RIA) process as well as for some primary laws in selected policy areas. Each online consultation is accompanied by a feedback report, summarizing the views of participants and providing feedback on the comments received. According to an OECD 2019 report on Indicators of Regulatory Policy and Governance, the transparency of the Maltese regulatory framework could be further strengthened by making RIAs available for consultations with stakeholders by systematically engaging with stakeholders during the development of primary laws, specifically at an early stage, before a preferred regulatory decision has been identified. The “Small Business Act” (SBA), adopted in 2011 and recently revised in 2021, introduced a framework for ex ante impact assessment to be applied by ministries when developing subordinate regulations, including an SME-Test, and more recently for developing primary laws.The European Commission (EC) Corporate Sustainability Reporting Directive (CSRD) came into force 5 January 2023. This EC directive introduced extensive mandatory reporting requirements for large companies and separate, proportionate standards for listed SMEs, a requirement that is also extended to Malta. Companies will have to report on how sustainability issues affect their business, society, the environment and vice versa.  As a result, nearly 50,000 companies in the EU – Maltese companies included – have to report on sustainability matters.  External audits will be required to verify the reported information. Companies have to digitally report/tag the information, so it is machine readable.The CSRD revises, broadens and strengthens the rules originally introduced by the Non-Financial Reporting Directive (NFRD) by introducing a standardized and common language for sustainability information and bringing sustainability reporting on par with financial reporting. Member States now have 18 months to transpose the provisions of the CSRD into national law (i.e. by 4 July 2024 at the latest).In December 2021, Malta launched its first Environmental, Social, and Governance (ESG) portal, allowing the general public and investors to evaluate the environmental, social and governance credentials of the largest quoted companies in Malta. The ESG portal, facilitates local and foreign investors’ access to data measuring the level of importance companies are giving to ESG. This platform will serve to further encourage sustainable investment, as investors are increasingly looking into ESG credentials before investing. These companies are quoted on Malta’s Stock Exchange, and their ESG credentials can now be accessed via:   https://sustainabledevelopment.gov.mt/esg/ .																																				International Regulatory Considerations										Malta’s regulatory system is derived from the acquis communautaire, the body of laws, rights, and obligations that are binding on all EU member states. Consequently, trade and investment relations with third countries are an EU responsibility under the Common Commercial Policy. However, with respect to investment, Malta does have some national competences in certain investment areas. In particular, where the EU does not have or is not negotiating an investment protection agreement, Malta can hold or negotiate one unilaterally. Malta also maintains competence in the areas of transport and portfolio investment, as well as corporate taxation. NFDIS implements the EU-wide mechanism for cooperation on investment as required by the new EU framework for investment screening which entered into force on April 10, 2019.Malta became a WTO member on January 1, 1995. However, all draft technical regulations to the WTO Committee on Technical Barriers to Trade are now made at the EU level.Malta ratified the Trade Facilitation Agreement on October 5, 2015 and is in full compliance with its implementation commitments.																																				Legal System and Judicial Independence										Malta’s Commercial Code regulates commercial activities and related legislation, such as the Banking Act, the Central Bank of Malta Act, and bankruptcy. In cases of bankruptcy, the court appoints a curator to liquidate the assets of the bankrupt company, organization, or individual, and distributes the proceeds among the creditors.The Maltese judiciary is independent, and courts are divided into superior courts, presided over by judges, and inferior courts, presided over by magistrates. Inferior courts have jurisdiction over minor offenses of a criminal nature and small civil matters. The judiciary traditionally functions through the Criminal, Civil, and Constitutional courts. The First Hall of the Civil Court hears commercial cases. Malta has a Criminal Court of Appeal and a second Court of Appeal for all other matters. The Constitutional Court has jurisdiction to hear and determine questions and appeals on constitutional issues. There are also a number of administrative tribunals, such as the Industrial Tribunal, the Rent Regulation Board, the Sanction Monitoring Board, and the Board of Special Commissioners (for income tax purposes). Malta adopted the European Convention of Human Rights as part of its domestic law in 1987.The Maltese judiciary has a long tradition of independence. Once appointed to the bench, judges and magistrates have fixed salaries that do not require annual approval. Judges cannot be dismissed, except by a two-thirds vote in the House of Representatives for proven misbehavior or the inability to exercise properly their function. The Maltese Constitution guarantees the separation of powers between the executive and the judiciary and a fair trial. In December 2018, the European Commission for Democracy through Law, known as the Venice Commission, issued an opinion on the constitutional arrangements, separation of powers, and independence of the judiciary and law enforcement bodies of Malta. Malta is currently in the process of implementing changes in accordance with the Venice Commission recommendation. Thus far various laws have been enacted to address reforms which include constitutional arrangements that divest powers from the Prime Minister to appoint the judiciary and law enforcement, and separation of powers between the judiciary and law enforcement.In the latest 2022 Rule of Law Report Country Chapter on Malta the European Commission noted that Maltese reforms enacted during 2020, in particular the transfer of prosecutions from the police to the Attorney General, and a review on the independence of specialized tribunals has been announced by the Government. The Government adopted the National Anti-Fraud and Corruption Strategy, whose implementation is overseen by an inter-ministerial Committee. Concerns raised by the EC was that no further steps have been taken regarding the system of appointment of the Chief Justice, and the lack of involvement of the judiciary in that system requires further attention. Regarding the quality of justice, several initiatives have been carried out, including the publication of the first national Digital Justice Strategy (2022-2027) and improvements in the legal aid framework.																																				Laws and Regulations on Foreign Direct Investment										Several laws govern foreign investment in Malta. The Income Tax Act of 1948 (as amended in 1994) establishes a single rate of taxation of 35 percent on income for limited liability companies in Malta. In certain qualifying cases, this rate can fall to five percent through a system of tax refunds on dividends paid. The Business Promotion Act authorizes the Government of Malta to allocate fiscal and other incentives to companies engaged in manufacturing (including software development), repair, or maintenance activities. The Malta Enterprise Act of 2003 enables Malta Enterprise to develop and administer incentives and other forms of support to liberalize and update legislation relevant to FDI. The Companies Act of 1995 regulates the creation of limited liability companies. The Companies Act also provides for the establishment of investment companies with variable share capital (SICAVS) and companies with share capital denominated in a foreign currency. The Malta Financial Services Authority Act of 1989 established the Malta Financial Services Authority (MFSA), which is responsible for the regulation of banking and investment services in Malta. The Investment Services Act of 1994 regulates investment services in the banking and insurance sectors. In 2018, Malta enacted three new acts related to blockchain. The Malta Digital Innovation Authority Act (MDIA) establishes the Authority that oversees and regulates innovative technologies, along with the Innovative Technology Arrangement and Services Act (ITAS) that regulates Innovative Technology Arrangements and Services, such as the software and coding used in digital ledger technology (DLT), smart contract, and related applications, together with the technical administration and review services. In 2018, the MFSA was entrusted with the Virtual Financial Assets Act (VFA) that regulates Initial Virtual Financial Assets Offerings and delineates their licensing requirements. The National Foreign Direct Investment Screening Office Act of 2020 was set up in order to implement the provisions of Regulation (EU) 2019/452 establishing a framework for the screening of foreign direct investments into the Union. The purpose of the screening process is to protect European Union intelligence, knowledge and technology, as well as the security interests of the Union.																																				Competition and Antitrust Laws										Malta is a free-trade, open-economy country. The government does not approve or restrict any FDI, so long as it complies with EU and national regulations. Malta Enterprise reviews FDI before granting any incentives to a private entity or business. A due diligence process is carried out prior to approving greenfield investments. The MFSA undertakes the filings and regulatory screenings on financial investments.The Office for Competition, currently housed within the Malta Competition and Consumer Affairs Authority (MCCAA), is the office tasked with protecting competition in Malta. The Maltese Competition Act is modelled on EU competition law. The latest amendments to the Competition Act in 2011 strengthened its deterrent effect by widening the decision-making powers of the Office for Competition and further aligned both the substantive and procedural rules with those existing under EU law.																																				Expropriation and Compensation										The Government of Malta, in exceptional instances, expropriates private property for public purposes. In such cases, the government must take action in a non-discriminatory manner and in accordance with established principles of international law. Investors and lenders of expropriated property receive prompt, adequate, and effective compensation. In 1993, the government’s Property Division started accepting expropriation requests by public bodies only if the requests were accompanied by the compensation due to the landowners. In 2002, this practice was made law. As a result, the government may only expropriate private property if the presidential decree also includes a deposit for the compensation due. In recent years, the government has appropriated land mainly for the widening of roads; however, no particular sectors are at risk for expropriation or similar actions, and no laws force local ownership.																																				Dispute Settlement																										ICSID Convention and New York Convention						Malta signed the Convention on the Settlement of Investment Disputes (ICSID) in 2002. Malta is also a member of the New York Convention of 1958 on the recognition and enforcement of foreign arbitration awards (UNCITRAL).						Investor-State Dispute Settlement						There has only been one significant investment disputes over the past few years involving U.S. or other foreign investors or contractors in Malta. In a limited number of cases, U.S. investors have identified difficulties in obtaining fair legal resolutions, especially in disputes with Maltese parties. Courts in Malta are slow in processing cases. Reforms to increase efficiency in the judicial system are part of an ongoing constitutional reform effort, including the recent progress Malta made on implementing the Venice Commission recommendations. In December 2019, the State Advocate Act came in effect, as part of the reform in the Maltese justiciary, which split the Attorney General’s (AG) dual government advisory and prosecutorial roles.						International Commercial Arbitration and Foreign Courts						Malta honors the enforcement of foreign court judgments and foreign arbitration awards. Bilateral investment treaties, which Malta has with several countries (see section 3, Bilateral Investment Agreements), provide for the acceptable methods of settling disputes connected with citizens of those countries.																										Bankruptcy Regulations										The Companies Act and the Commercial Code Bankruptcy in Malta and the Set-off and Netting on Insolvency Act of 2003 regulate bankruptcy. The latter provides for the set-off and netting due to each party with respect to mutual credits, mutual debts, or other mutual dealings that are enforceable whether before or after bankruptcy or insolvency.The Maltese insolvency law regime distinguishes between bankruptcies of a person and bankruptcies of a commercial partnership other than a company. When a company cannot pay its debts, it may initiate insolvency proceedings. In such a case, the court examines carefully whether the financial situation of the company justifies its insolvency or whether it could remain operational and continue to pay its debts.Any officer of a company who, in the twelve months prior to the deemed date of dissolution, concealed assets or documents, disposed of assets, or otherwise acted in a fraudulent manner may be criminally liable. Separately, courts may find any such officers civilly liable for such acts and require them to pay back to the company any moneys due. The law also provides for proceedings in cases of wrongful trading by directors and fraudulent trading by any officer of the company.The Malta Association of Credit Management, known as MACM, is a members-owned, not-for-profit organization, providing a central national organization for the promotion and protection of all credit interests pertaining to Maltese businesses. More information at:  https://www.macm.org.mt/ .																																												4. Industrial Policies						    																																																Investment Incentives										The Government of Malta offers several investment incentives to attract FDI. All investment incentives are specified by law and cannot be made available in an ad hoc manner. However, the way in which incentives are designed allows the opportunity to offer relatively tailor-made solutions, even though treatment of local and foreign investors is identical. There are no stated requirements that a foreign investor should transfer technology, employ Maltese nationals, or reduce shareholding interest over time. These factors might, however, influence Malta Enterprise’s decision regarding a firm’s application for assistance. Malta Enterprise monitors compliance with any conditions set by the government as a condition of government assistance. Investors are not required to disclose proprietary information.																																				Investment Aid										Companies in key sectors may be supported on their initial investment and the expansion of current investment. In the case of SME’s the support is calculated as a percentage of up to 30% of the qualifying expenditure in tangible and intangible assets or the cost of the first 24 months of wages related to roles created by the investment, 20 % for medium sized companies and 10% for large companies. The support is granted as a tax credit against future income tax and may in certain instances be awarded as a cash grant. Supported projects may also be facilitated through access to finance measures in which case the gross grant aid equivalent of the access to finance measure shall be reduced from any aid awarded as tax credit.																																				Access to Finance										Malta Enterprise supports enterprise carrying out initial investment projects by providing:Guarantees which may be used to partially guarantee investment loans issued from commercial bank; orLoan interest subsidies on the rate of interest payable on bank loans.Soft loans to support firms undertaking investments which are not typically supported through traditional bank finance. This financial instrument is designed to cover business ventures to establish new products, entering new geographic markets, or digitizing operations. Such undertakings may be supported through a soft loan covering part of the funding requirements of up to €1 million.																Research and Development						The Government of Malta offers specific incentives for companies to engage in industrial research and development. Malta Enterprise offers incentives to support and encourage businesses to engage in industrial research and experimental development, including exploitation of intellectual property through the licensing of patented knowledge. The government does not differentiate between U.S. or other foreign firms and local firms regarding participation in incentive programs.U.S. companies also can partner with local firms to participate in Horizon Europe, the EU Framework program for funding research and innovation. Horizon Europe will run until the end of 2027 and has a budget of €95.5 billion.						Incentives for Green Energy, Business Regeneration and Sustainability						Malta’s budgetary plans have placed environmental and social responsibility at the top of the country’s agenda, with a long-term vision aiming to support the post-pandemic economic regeneration. Malta Enterprise offers support to businesses based in Malta to engage in the twin green and digital transition, and to meet international ESG expectations. The agency has launched a number of specific support measures, including the Smart and Sustainable Investment Grant, which encourages enterprises to invest further in sustainability, leading to reduction of waste, increased use of sustainable materials, and higher levels of energy and water efficiency. Eligible businesses can benefit from up to €100,000 for every project, covering 50% of the total eligible costs.Furthermore, as part of Malta’s efforts to meet its emission targets and build a more sustainable future, Malta Enterprise is launching several programs, including a scheme designed to help enterprises replace their fossil fuel-powered vehicles with electric ones.Cognizant of the current worldwide challenges related to supply chains and to mitigate price hikes in the cost of international movement, the government has extended its rent subsidy incentive to reach an even larger number of eligible businesses, particularly in covering expenses for the rental cost of warehouses for stockpiling.Another related development, specifically to the address the circular economy, Malta will be launching the Blue Med Hub, with the aim of bringing together various blue economy experts and that of attracting start-ups and small and medium-sized enterprises, both local and foreign, related to this field. The Hub will collaborate with African and Middle Eastern entities to open investment opportunities in this sector.More information on incentives offered by Malta Enterprise can be found at:  https://www.maltaenterprise.com/support Employment and Training: Malta’s employment corporation JobsPlus, supports enterprises in recruiting new employees and training their staff. Malta Enterprise offers the Skills Development Scheme which enterprises can benefit of when training their employees. Malta hosts a number of foreign universities offering courses on the Island targeting both local and foreign students, with the latest addition being Bart’s School of Medicine, Queen Mary University of London.Enterprise Support: Malta Enterprise provides assistance to businesses to support development of international competitiveness, improve processes, and network with other businesses. Trade Malta, Malta’s export and trade promotion agency, offers support for trade promotion activities focused on exports.Startups: Malta is open for startups. Malta Enterprise is leading national efforts to consolidate the startups ecosystem. Its financial schemes may support startups with up to 1.2 million Euro covering costs of salaries, equipment, relocation and equity among others. Such assistance combines seed funding, repayable advanced grants and scaleup grants.Over the past years, the country has notably invested in the creation of incubators and the attraction of accelerators such as Plug and Play, shared working-spaces, seed-financing schemes and other financial incentives, consolidating the start-up ecosystem with the launch of a national portal for start-ups. For more information visit  www.startinmalta.com A new initiative launched in 2022, is the Start-Up Residence Programme, a mechanism to continue making Malta an attractive location for start-ups and entrepreneurs. A new residency visa for founders and co-founders developing start-ups will ease establishing a business in Malta.Other Tax Benefits: The Government of Malta offers generous incentives to trading and financial companies registered with the Malta Financial Services Authority. Legislative changes in 1994 removed the distinction between offshore and onshore companies, so all companies in Malta are subject to a 35 percent tax rate on profits. However, the fact that the Maltese tax system is a full imputation system – and the only one remaining in the EU – means that a tax paid by a company will essentially remain a prepaid tax on behalf of the tax liability of the shareholders. Shareholders then are entitled to claim a tax refund, which may be equivalent to roughly 85 percent (in the case of trading income) of the tax paid at the corporate level. Companies operating within the Malta Freeport, a customs-free zone, may also benefit from reduced rates of taxation and investment tax credits. An additional tax benefit initiative recently introduced is to be given to businesses that reinvest a percentage of their retained profits into eligible projects in the same business or in another enterprise.																										Foreign Trade Zones/Free Ports/Trade Facilitation										Malta’s Freeport container port offers modern transshipment facilities, storage, assembling and processing operations, as well as an oil terminal and bunkering facilities. Following a corporate restructuring from 1998 through 2001, Malta established a distinction between authority and operator of the Freeport. Malta Freeport Corporation Ltd. (“Malta Freeport Authority”) fulfils the role of landlord and authority, whereas Malta Freeport Terminals Ltd. (“Malta Freeport”) carries out the role of operator. Malta Freeport Terminals Ltd. is the single operating company of the warehousing facilities and two container terminals, handling container vessels at 20,000 TEU and larger. In October 2004, the Government of Malta granted a 30-year concession for operation and development of Malta Freeport Terminals CMA CGM, which transferred its half of shares in Malta Freeport Terminals Ltd. to the Yilidirim Group of Turkey in November 2011 and sold a 49 percent interest in port operator Terminal Link to China Merchant Holdings (International) Company Ltd. in June 2013.For a company to carry out business within the Freeport zone, Malta Freeport Authority must grant it a license, and its operations must complement the Freeport’s activities. Through the utilization of these facilities, clients can engage in an extensive range of handling operations, including cargo consolidation, break-bulk, storage, re-packing, re-labelling, and onward shipping. Malta Freeport also offers assembly and processing options in accordance with the Malta Freeports Act. The operator must ensure that it does not label goods that have been processed in the Freeport with Malta as their country of origin unless their identity has been substantially transformed within the zone. Companies operating within the Freeport benefit from reduced tax rates, as well as investment tax credits without customs interventions.Malta Freeport offers round-the-clock industrial storage operations supported by a highly developed, customized infrastructure, as well as extensive transport networks, which link Malta to various important markets on a regular basis, including port connections in North America, Central America, and South America. Warehousing facilities lie only six kilometers from the island’s international airport, offering excellent opportunities for sea and air links stretching worldwide.																																				Performance and Data Localization Requirements										Currently, no performance requirements exist, other than the goals that the investors link to applications for assistance with Malta Enterprise. Foreign investors can repatriate or reinvest profits without restriction and take disputes before the International Center for the Settlement of Investment Disputes (ICSID).The government does not require foreign investors to establish or maintain data storage in Malta. However, the Malta Gaming Authority (MGA), the independent regulatory body responsible for the governance of all gaming activities, does require gaming companies to hold their data in Malta.Foreign IT providers incorporated in Malta that process personal data in the context of the activities of an establishment qualify as data controllers under the Data Protection Act and fall within the jurisdiction of the Office of the Data Protection Commissioner. The Data Protection Commissioner stated there has never been an instance where, during an investigation, the Commissioner has requested access to source code or to encryption functions.Any transfer of personal data by a controller established in Malta to a third country that does not ensure an adequate level of data protection is subject to the authorization of the Data Protection Commissioner as required by the Data Protection Act. In an attempt to facilitate and harmonize the implementation of this requirement, the European Commission adopted model clauses (Standard Contractual Clauses and Binding Corporate Rules – the latter used for sharing of personal data within a group of companies) which controllers may use for this purpose. No authorization is required for transfers made to EU Member States, members of the EEA, third countries which are, from time to time, recognized by the European Commission to have an adequate level of protection, and to companies that are certified under the EU-U.S. Privacy Shield. Furthermore, any personal data shared (rather than transferred) between data controllers in Malta must be in line with the legal requirement as established in the Data Protection Act.The European Union’s General Data Protection Regulation (GDPR), enacted in 2016, entered into force on May 25, 2018. The GDPR, which succeeds the Data Protection Directive of 1995, aims to protect EU citizens’ personal data, harmonize data privacy laws across the EU, and provide for better coordination among EU Member State data protection authorities. U.S. companies wishing to operate in Malta or to do business with Maltese individuals or entities should ensure compliance with the regulation.Data controllers processing personal data are subject to the rules emanating from the General Data Protection Regulation (GDPR). These rules must be observed to ensure that the processing activities are carried out fairly and lawfully and with respect to the data subjects’ fundamental rights and freedoms. The competent authority in Malta that regulates and monitors observance with this law is the Office of the Information and Data Protection Commissioner.																																												5. Protection of Property Rights						    																																																Real Property										Property and contractual rights are enforced by means of (a) legal warning; (b) warrants of seizure; (c) warrants of prohibitory injunction; (d) warrants of impediments of departures (if proceedings fall within the jurisdiction of the Criminal Court); and (e) sale of property by court auction. The Code of Organization and Civil Procedures lays out procedures for registering and enforcing judgments of foreign courts. Rights and secured interests over immovable property must be publicly registered in order to be enforceable. The Government of Malta has occasionally been a party to international arbitrations and has abided by tribunal decisions.The 2006 Maltese Securitization Act provides for a range of securitization transactions within its secure regulatory framework and offers various legal and international tax benefits. Malta permits the creation of securitization cell structures, allowing for multiple cells with clear segregation of assets and liabilities between each cell. Foreign investors typically use securitization for passporting funds, which allows a firm registered in the European Economic Area (EEA) to do business in any other EEA state without the need for further authorization from each country, and for investment within the EU. Investors typically use this system over the securitization of property.																																				Intellectual Property Rights										The Maltese legal system adequately protects and facilitates acquisition and disposition of intellectual property rights. In 2000, Malta implemented the pertinent provisions of the WTO Trade-Related Aspects on Intellectual Property Rights (TRIPS). Malta has fully incorporated EU and WTO rules into national law. Additional information on EU-wide provisions on copyright, patents, trademarks, and designs can be found at: https://ec.europa.eu/trade/policy/accessing-markets/intellectual-property/ In addition, Malta is a member of the World Intellectual Property Organization (WIPO), the Paris Convention for the Protection of Industrial Property, the Bern Convention for the Protection of Literary and Artistic Works, and the Universal Copyright Convention (UCC).Malta is not listed in the USTR’s Special 301 report nor in the USTR’s Notorious Market Report. The Association against Copyright Theft claims that Malta’s local laws do not include high enough minimum fines to deter vendors from selling pirated material. For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at  http://www.wipo.int/directory/en/ .Malta’s Commerce Department within the Ministry for the Economy, European Funds and Lands is responsible for intellectual property-related issues.The Malta Customs Intellectual Property Rights Unit – Enforcement Directorate operates in terms of the Intellectual Property Rights cross- border European measures. Given Malta’s strategic position in the Mediterranean Sea shipping routes, Malta Customs has a significant role and requires the office to inspect the transit/transshipment cargo at Malta Freeport terminal. Over the past years, Malta Customs major detentions of counterfeited goods were destined to the Northern African countries originating from Asia. Customs have detained millions of counterfeit goods that include cigarettes, sport shoes, sportswear, toothpaste, shampoos, deodorants, clothing accessories, and garments. Since Malta joined the EU, Malta Customs’ recordings of counterfeit goods detentions have been among the highest recorded at an EU level. Annual statistics can be found at the following link: https://taxation-customs.ec.europa.eu/customs-4/prohibitions-and-restrictions/counterfeit-piracy-and-other-ipr-violations/intellectual-property-rights-facts-and-figures_en For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at  http://www.wipo.int/directory/en/ .Commerce DepartmentTel: +356 2122 6688Email: commerce@gov.mtWebsite:  http://commerce.gov.mt/en/Pages/Contact-Details.aspx Address: Commerce Department, Lascaris Bastion, Valletta, VLT 1933, Malta																																												6. Financial Sector						    																																																Capital Markets and Portfolio Investment										Malta&#8217;s Stock Exchange was established in 1993. In 2002, the Financial Markets Act effectively replaced the Malta Stock Exchange Act of 1990 as the law regulating the operations and setup of the Malta Stock Exchange. This legislation divested the Malta Stock Exchange of its regulatory functions and transferred these functions to the Malta Financial Services Authority (MFSA). The Financial Markets Act also set up a Listing Authority, which is responsible for granting “Admissibility to Listing” to companies seeking to have their securities listed on the Exchange.To date, the few companies publicly listed on the Malta Stock Exchange have not faced the threat of hostile takeovers. Except for the EU regulation 2019/452 establishing a framework for the screening of foreign direct investments and the subsequent incorporation into the Laws of Malta as Chapter 620, Malta has no laws or regulations authorizing firms to adopt articles of incorporation/association that would limit foreign investment, participation, or control. Legal, regulatory, and accounting systems are transparent and consistent with international norms; several U.S. auditing firms have local offices.																																				Money and Banking System										The Maltese banking system is considered sound. In recent years, local commercial banks expanded the scope of their lending portfolios. Capital is available from both public and private sources; both foreign and local companies can obtain capital from local lending facilities. Commercial banks and their subsidiaries can provide loans at commercial interest rates. It is possible for new investors to negotiate soft loans from the government covering up to 75 percent of the projected capital outlay.No U.S. bank has a branch in Malta. BNF and HSBC Malta currently maintain direct correspondent banking relationships with U.S. banks. Some local banks act as correspondents of several U.S. banks via other EU banks, though such a relationship often results in higher transaction costs.The majority of banks have stopped opening accounts for companies that do not operate in Malta, those that operate in the electronic gaming sector, and those operating in the cryptocurrency sector. The few banks that still offer these services have tightened their due diligence processes, resulting in long delays to open accounts.Malta takes pride in being the first country to propose a legal framework for the creation of an Authority to regulate Distributed Ledger Technology, Artificial Intelligence, and Internet of Things (IOT) devices. In 2018, Government enacted three legislations that provide a regulatory framework on Distributed Ledger Technology, issuers of Initial Coin Offerings (ICOs), and related service providers dealing in virtual currencies, which currently fall outside the scope of a legislative and regulatory regime.																																				Foreign Exchange and Remittances																										Foreign Exchange						As long as investors present the appropriate documents to the Central Bank of Malta, there are no limitations on the inflow or outflow of funds for remittances of profits, debt service, capital, capital gains, returns on intellectual property, or imported raw materials. There are no significant delays in converting investment returns to foreign currency after presentation of the necessary documents. Maltese regulations and practices affecting remittances of investment capital and earnings have been streamlined, as several foreign exchange controls were relaxed to conform to EU directives. Malta joined the Eurozone in January 2008.						Remittance Policies						A company incorporated under the laws of Malta is considered ordinarily resident and domiciled in Malta. Companies which are ordinarily resident and domiciled in Malta are subject to tax on their worldwide income. A company not incorporated in Malta, but managed and controlled in Malta, is subject to tax on a remittance basis on its foreign-sourced income.Companies subject to tax on a remittance basis are taxed on:Income and capital gains deemed to arise in MaltaIncome deemed arise outside Malta and remitted to MaltaCompanies subject to the remittance basis are not taxed on:Income deemed to arise outside Malta which is not remitted to MaltaCapital gains arising outside MaltaCompanies which are not incorporated in Malta are considered to be resident in Malta when their management and control is shifted to Malta.Malta does not allow the application of the remittance basis of taxation to individuals who are either (a) domiciled but not ordinarily resident or (b) ordinarily resident but not domiciled in Malta, whose spouse is both ordinarily resident and domiciled in Malta. In this regard, such individuals will now become taxable on their worldwide income and capital gains, irrespective of receipt/remittance of such income to Malta not domiciled in Malta.																										Sovereign Wealth Funds										In 2015, Malta established the National Development and Social Fund (NDSF) to manage and administer receipts from the country’s citizenship-by-investment program. According to the Sovereign Wealth Fund Institute (SWFI), NDSF current assets is $730.6 million making it the 80th largest sovereign wealth fund worldwide. The fund receives 70 percent of its contributions from the country’s citizenship program. Among some of the most noteworthy investments allocated by the NDSF are: €66 million ($72 million) in Social Housing, for the construction of a substantial amount of units; €1.5 million ($1.65 million) as an investment in artistic heritage, €3.5 million ($3.85 million) in Urban Greening projects and €950,000 ($1.46 million) investment in Mater Dei Hospital’s Cardiology Department to upgrade its two catheterization suites. NDSF funds has also been utilized by government to help soften the economic crises brought about by the COVID-19 pandemic. The mission of the NDSF is to contribute towards, promote, and support major projects and initiatives of national importance and public interest. These initiatives and projects are intended to develop and improve the economy, public services, and the general well-being of present and future generations.In March 2022, the Malta Government Investments (MGI), the Sovereign Fund of Egypt (SFE), and French public investment bank Bpifrance have signed a deed to establish the European, Middle East, and North Africa (EMENA) Sovereign Wealth Funds Foundation based in Malta. In addition, the Compañía Española de Financiación del Desarrollo (COFIDES) signed a memorandum of understanding with the three parties with the intention to become a member of EMENA. The foundation aims to serve as a regional platform for members to meet and exchange experiences and available information on investment opportunities to achieve national and sustainable economic development goals in Europe, the Middle East and North Africa. The collaboration network further aims to crowd in sovereign fund backed capital that will help unlock significant private investment flows to de-risk and fund projects or companies in the EMENA area that has an investment funding gap of USD700-900 billion, with a special focus on green technology, sustainable development, SMEs and innovation.																																												7. State-Owned Enterprises						    																						The Malta Investment Management Company Limited (MIMCOL) was established in 1988 to manage, restructure, and selectively divest the Government of Malta from state-owned enterprises (SOEs). MIMCOL also promotes private sector investment using cost-effective business practices across various SOEs. MIMCOL created strategies leading to the dissolution of SOEs with limited commercial prospects, as well as the profitable spin-off of non-core operations with commercial potential. MIMCOL’s focus then turned to SOEs deemed of strategic national value, but whose inefficient operations were reflective of a lack of competition. Eventually, MIMCOL prepared most SOEs for privatization and sold them off. Today, MIMCOL’s role has evolved into specialized assignments, such as strategic reviews of the management and operations of important parastatal companies and corporations operating in various sectors.MIMCOL’s sister company Malta Government Investments (MGI) holds a portfolio of 17 companies (excluding companies falling under the responsibility of other ministries and investments held directly by the government). This portfolio is not well defined. Most government investments are held by either the Board of Trustees within the Ministry for the Economy, European Funds and Lands or by Malta Government Investments Limited (MGI) as an agent for the Government of Malta.																										Privatization Program										Upon accession to the European Union, and in recent years, the Maltese government has privatized a number of state-controlled firms, including the country&#8217;s largest bank, the postal service, shipyards, energy generation plants, and the wireless telecommunications industry. Although no plans exist to privatize Air Malta, the national airline, the Government of Malta was considering options for a strategic minority partner, though these plans are currently on hold. Ryanair also operates a subsidiary airline called Malta Air that incorporated its 61 Ryanair routes to and from Malta. The Ryanair fleet was registered with the Malta Aviation Authority.In 2015, the Government of Malta set up Projects Malta and Projects Plus Ltd to coordinate and facilitate public private partnerships between government ministries and the private sector. The government welcomes private investors, Maltese and non-Maltese, in privatization projects. It affords foreign investors equal treatment with domestic investors and sets few limitations on their operations. Foreign investors can repatriate or reinvest profits without restriction and take disputes before the International Center for the Settlement of Investment Disputes (ICSID).																																												8. Responsible Business Conduct						    																						Corporate social responsibility (CSR) has become more prevalent in Malta in recent years, as global concerns such as climate change have risen to the forefront and as the EU has raised expectations for its member states regarding CSR. An increasing number of companies in Malta recognize the importance of their role in society and the real benefits of adopting a proactive approach to CSR.The Maltese government does not specifically request adherence to OECD Guidelines for Multinational Enterprises; however, it is expected that multinationals follow generally accepted CSR principles.Under the Code of Good Corporate Governance Guidelines, issued by the Malta Financial Services Authority in 2006, boards should seek to adhere to accepted CSR principles in day-to-day management practices and work closely with “suppliers, customers, employees, and public authorities.” Although corporate governance guidelines are non-binding in nature, public interest companies should highlight the adherence to such corporate governance principles in their annual reports.In line with recent amendments to the Companies Act, the directors’ report that accompanies the annual financial statements should include an analysis of both financial and non-financial key performance indicators relevant to the particular business, including information relating to environmental matters.In February 2022, the European Commission proposed a Corporate Sustainability Due Diligence Directive (CSDDD) that will require large companies to incorporate due diligence in their company policies to mitigate adverse impacts on the environment and human rights in their operations, and also places the obligation on all their established business relationships globally. Therefore, all companies, no matter how big or small, that are in a value chain of a company that falls within the scope of this Directive, whether in Malta or internationally, will also require to abide by the code of conduct to be compliant with this directive. The requirements of the CSDDD will also apply to all non-SMEs when seeking credit from financial institutions. Currently, this directive is moving through the European Union legislative process.Additional ResourcesDepartment of State Country Reports on Human Rights Practices; Trafficking in Persons Report; Guidance on Implementing the &#8220;UN Guiding Principles&#8221; for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities; U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises; and; Xinjiang Supply Chain Business Advisory Department of the Treasury OFAC Recent Actions Department of Labor Findings on the Worst Forms of Child Labor Report ; List of Goods Produced by Child Labor or Forced Labor ; Sweat &amp; Toil: Child Labor, Forced Labor, and Human Trafficking Around the World  and; Comply Chain .																										Climate Issues										In October 2019, the Maltese Parliament unanimously declared a climate emergency, a predicament identified in Malta’s 2015 Climate Action Act.  The Climate Action Act was published as Chapter 543 of the Laws of Malta and is Malta’s main law on climate change. The Act provides legal obligations for coherent and coordinated governance to deal with this challenge on a national level. The subsidiary legislation under the Act transposes the legally binding commitments that the EU member States have under the 1992 United Nations Framework Convention on Climate Change (UNFCCC), 1997 the Kyoto Protocol and the 2015 Paris Agreement. Besides the Climate Action Act there are various national Policies, Strategies and Plans that address climate action.Malta has committed to also move towards the EU’s collective efforts of climate neutrality by 2050.  The same ambition is also embedded in Malta’s post-pandemic economic vision, whereby Malta unveiled an ambitious climate action plan – to achieve net-zero emissions in just 30 years and implement green changes to every aspect of life.  Malta plans on fulfill its commitment through the implementation of its Low Carbon Development Strategy (LCDS), launched in 2021.Malta’s Low Carbon Development Strategy (LCDS) includes a first 10-year plan with a list of measures to mitigate greenhouse gas (GHG) emissions, including a package of transport measures such as electrification of vehicles, extension of free public transport and incentives to encourage walking, cycling and other active transport such as e-bikes and pedelecs; and energy-efficiency in buildings such as photovoltaic panel schemes, support for solar water heaters, heat pumps, insulation and double-glazing.																																												9. Corruption						    																						Maltese law provides criminal penalties for official corruption, and the government generally implements these laws effectively. The Malta Police Force, the Attorney General’s Office, and the Permanent Commission against Corruption are responsible for combating official corruption. Past news reports suggest a number of government corruption allegations, which have resulted in legal action and resignations.While corruption remains an area of concern more broadly, public sector corruption, including bribery of public officials, is not a significant challenge for U.S. firms operating in Malta. The Council of Europe’s Group of States against Corruption (GRECO) completed its fifth evaluation of Malta in the autumn of 2018 and its findings were published in September 2019. Following the four previous rounds of evaluation and a follow-up compliance review, Malta introduced a number of legislative measures to combat corruption and is currently in the process of introducing further measures to improve its financial oversight.In 2019, the Committee of the Experts on the Evaluation of Anti Money Laundering Measures and the Financing of Terrorism (MONEYVAL) identified several shortcomings an gaps within the local AML/CFT framework, which triggered an assessment by the Financial Action Task Force (FATF). FATF placed Malta on the Jurisdictions under Increased Monitoring list, also known as the grey list in June 2021.In May 2021, MONEYVAL conducted their follow-up report on Malta, where they found that the country made considerable effort in its fight against money laundering and terrorist financing, giving the country a clean bill of health.In March 2022, the FATF plenary noted positive developments in Malta’s efforts on AML/CFT and announced that an evaluation team would visit the country to assess the implemented reforms up close, with an eye to discuss the country’s position on the grey list during the June 2022 Plenary.The latest MONEVAL follow up report is available at   https://rm.coe.int/moneyval-2021-7-fur-malta/1680a29c70 In the wake of the FATF greylisting, Malta has taken significant steps over the years to combat corruption, including the establishment in 2002 of the Financial Intelligence Analysis Unit (FIAU) to support domestic and international law enforcement investigative efforts. The Prevention of Money Laundering and Funding of Terrorism Regulations were transposed into Maltese law in July 2008, and conform to EU Directive 2005/60/EC (the Third Directive) and Directive 2006/70/EC. Malta transposed the Fourth Anti-Money Laundering Directive in December 2017 and, in April 2018, announced its first national Anti-Money Laundering and Countering the Funding of Terrorism (AML/CFT) Strategy.Local Laws: U.S. firms should familiarize themselves with local anti-corruption laws, and, where appropriate, seek legal counsel. While the U.S. Department of Commerce cannot provide legal advice on local laws, the Department’s Foreign Commercial Service (FCS) can provide assistance with navigating the host country’s legal system and obtaining a list of local legal counsel.Assistance for U.S. Businesses: The U.S. Department of Commerce offers several services to aid U.S. businesses seeking to address business-related corruption issues. For example, the FCS can provide services that may assist U.S. companies in conducting due diligence as part of the company’s overarching compliance program when choosing business partners or agents overseas. The FCS can be reached directly through its offices in major U.S. and foreign cities or through its website at  www.trade.gov/cs . The Departments of Commerce and State provide worldwide support for qualified U.S. companies bidding on foreign government contracts through the Department of Commerce’s Advocacy Center and Department of State’s Office of Commercial and Business Affairs. Problems, including alleged corruption by foreign governments or competitors, encountered by U.S. companies in seeking such foreign business opportunities can be brought to the attention of appropriate U.S. government officials, including local embassy personnel and through the Department of Commerce Trade Compliance Center “Report a Trade Barrier” website at  http://tcc.export.gov/Report_a_Barrier/index.asp .Guidance on the U.S. Foreign Corrupt Practices Act (FCPA): The Department of Justice’s (DOJ) FCPA Opinion Procedure enables U.S. firms and individuals to request a statement of DOJ’s present enforcement intentions under the anti-bribery provisions of the FCPA regarding any proposed business conduct. The details of the opinion procedure are available on DOJ’s Fraud Section website:  http://www.justice.gov/criminal/fraud/fcpa . Although the Department of Commerce has no enforcement role with respect to the FCPA, it supplies general guidance to U.S. exporters who have questions about the FCPA and about international developments concerning the FCPA. For further information, see the Office of the Chief Counsel for International Counsel, U.S. Department of Commerce website at  https://ogc.commerce.gov/collection/office-chief-counsel-international-commerce .Additional Anti-Corruption Resources:Useful resources for individuals and companies regarding combating corruption in global markets include the following:Information about the OECD Anti-Bribery Convention, including links to national implementing legislation, good practice guidance and country monitoring reports, is available at:  http://www.oecd.org/daf/anti-bribery/oecdantibriberyconvention.htm .Transparency International (TI) publishes an annual Corruption Perceptions Index (CPI). The CPI measures the perceived level of public-sector corruption in 180 countries and territories around the world.  http://www.transparency.org/cpi2015 .TI also publishes an annual Global Corruption Report that provides a systematic evaluation of the state of corruption around the world. It includes an in-depth analysis of a focal theme, a series of country reports that document major corruption related events and developments from all continents and an overview of the latest research findings on anti-corruption diagnostics and tools.  http://www.transparency.org/research/gcr/overview .The World Bank Institute publishes Worldwide Governance Indicators (WGI). These indicators assess six dimensions of governance in 212 countries, including Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption.  http://info.worldbank.org/governance/wgi/index.aspx#home .The World Bank Business Environment and Enterprise Performance Surveys are available at  http://www.enterprisesurveys.org/ .The World Economic Forum publishes the Global Enabling Trade Report, which presents the rankings of the Enabling Trade Index and includes an assessment of the transparency of border administration (focused on bribe payments and corruption) and a separate segment on corruption and the regulatory environment. The latest reports are available at:  http://reports.weforum.org/global-enabling-trade-report-2016/ .Additional country information related to corruption can be found in the U.S. State Department’s annual Human Rights Report available at  http://www.state.gov/g/drl/rls/hrrpt/.Global Integrity, a nonprofit organization, publishes its annual Global Integrity Report, which provides indicators for 92 countries with respect to governance and anti-corruption. The report highlights the strengths and weaknesses of national level anti-corruption systems.  https://www.globalintegrity.org/research/reports/ .UN Anticorruption Convention, OECD Convention on Combatting BriberyMalta signed the UN Anticorruption Convention in 2005 and ratified it in 2008, but it has not signed the OECD Convention on Combatting Bribery.Contact at government agency or agencies that are responsible for combating corruption:Malta Police CommissionerSt. Calcedonius SquareFloriana FRN 1530+356-2122 4001cmru.police@gov.mtMr. Charles DeguaraAuditor General of National Audit OfficeNotre Dame RavelinFloriana FRN 1600+356-2205 5555nao.malta@gov.mtContact at watchdog organization:Permanent Commission Against CorruptionChateau De La VilleArchbishop StreetValletta VLT 2000+356-2567 4309Pcac.mjcl@gov.mt																																		10. Political and Security Environment						    																						Malta has faced some political turmoil since the 2017 assassination of journalist Daphne Caruana Galizia, whose reporting focused on local government corruption and allegations of money laundering. Civil society protests led to resignations of a number of high-level officials, including the Prime Minister. Since then, the country has elected a new Prime Minister who expressed commitment to good governance and rule of law reform, including increased protections for journalists. Despite this isolated cased of targeted violence against a journalist, Malta is generally considered to have a safe political system and is secure relative to other countries in the region.																																		11. Labor Policies and Practices						    																						Malta’s labor force at the end of 2022 stood at 290,995 (69.8 percent male), the employment rate of women remains low, parenthood has a significant effect on the participation of women on the labor market, and the gender employment gap is currently one of the highest in the EU. The country’s population is about 533,286, the smallest in the EU. Employed foreign nationals in Malta and Gozo at the end of 2022 amounted to 96,970. Since the joining of the Maltese Islands in the European Union, employment of foreign nationals increased drastically. EU member states share 36% of total foreign employment, Third Country Nationals (TCNs) share 63% of total foreign employment; and EFTA countries (such as Iceland, Liechtenstein, Norway and Switzerland) share 1% of total foreign employment. For 2022, the national minimum monthly wage was $854.8 (€792.26). The estimated average gross annual salary of employees stood at $23,118 (€21,420); this amount refers to the basic salary and excludes extra payments such as overtime, bonuses, and allowances. In 2022, on a sectoral basis, the highest recorded average gross annual salary for employees was in financial and insurance activities. Social insurance contributions add ten percent to the wage bill, together with a 0.3 percent contribution to the government maternity fund. Free or subsidized meals, commuting allowances, and health insurance are the most common fringe benefits. In addition, employees are entitled to 25 days of annual leave and public holidays that fall on a weekday. National law establishes a minimum number of sick leave days.Foreign companies that have invested in Malta have a high regard for the ability, productivity, and learning potential of Maltese workers, nearly all of whom speak English. In some industries, labor productivity is comparable to other countries in Western Europe. Maltese managers now run most of the foreign firms in Malta. Malta enjoys one of the lowest strike rates in Western Europe, and labor unrest is unlikely in the foreseeable future. The Government of Malta strictly adheres to the ILO convention protecting workers’ rights.																																		12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs						    																						Given that Malta, as a high-income country as defined by the World Bank, it does not generally qualify for DFC support, although energy infrastructure projects in Malta could qualify under the European Security and Energy Diversification Act. Malta’s leading trading partners (the United Kingdom, Germany, France, and Italy) offer risk insurance programs similar to DFC that likewise cover investments in Malta. Malta is a member of the World Bank’s Multilateral Investment Guarantee Agency (MIGA).																																		13. Foreign Direct Investment Statistics						    																						Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/EconomyHost Country Statistical source*USG or international statistical sourceUSG or International Source of Data:  BEA; IMF; Eurostat; UNCTAD, OtherEconomic DataYearAmountYearAmountHost Country Gross Domestic Product (GDP) ($Billion USD)2022$16.72021$17.36www.worldbank.org/en/countryForeign Direct InvestmentHost Country Statistical source*USG or international statistical sourceUSG or international Source of data:  BEA; IMF; Eurostat; UNCTAD, OtherU.S. FDI in partner country ($M USD, stock positions)2022$30.92021$2.3BEA data available at https://apps.bea.gov/international/factsheet/Host country’s FDI in the United States ($M USD, stock positions)2022$9.12021$2.8BEA data available at https://apps.bea.gov/international/factsheet/Total inbound stock of FDI as % host GDP2021$231 44620211345.5%UNCTAD data available at https://unctad.org/topic/investment/world-investment-report* Source for Host Country Data:  Malta National Statistics Office ** Exchange rates: $1 = €0.9276Table 3: Sources and Destination of FDIDirect Investment from/in Counterpart Economy Data (through 2021)From Top Five Sources/To Top Five Destinations (US Dollars, Millions)Inward Direct InvestmentOutward Direct InvestmentTotal Inward231,174100%Total OutwardAmount100%Germany39,78017%N/AN/AN/AThe Netherlands10,52714%N/AN/AN/AUnited Kingdom17,0157.4%N/AN/AN/AIreland16,3227.0%N/AN/AN/ACanada14,9166.5%N/AN/AN/A“0” reflects amounts rounded to +/- USD 500,000.																																		14. Contact for More Information						    																						Maria CassarEconomic and Commercial SpecialistU.S. Embassy, Malta+356 2561 4120maltabusiness@state.gov																										    							View report by:																				Albania											Algeria											Andorra											Angola											Antigua and Barbuda											Argentina											Armenia											Australia											Austria											The Bahamas											Azerbaijan											Bahrain											Bangladesh											Barbados											Belarus											Belgium											Belize											Benin											Bolivia											Bosnia and Herzegovina											Botswana											Brazil											Brunei											Bulgaria											Burkina Faso											Burma											Burundi											Cabo Verde											Cambodia											Cameroon											Canada											Chile											China											Colombia											Costa Rica											Côte d’Ivoire											Croatia											Cyprus											Czechia											Democratic Republic of the Congo											Denmark											Djibouti											Dominica											Dominican Republic											Ecuador											Egypt											El Salvador											Equatorial Guinea											Eritrea											Estonia											Eswatini											Ethiopia											Fiji											Finland											France and Monaco											The Gambia											Gabon											Georgia											Germany											Ghana											Greece											Grenada											Guatemala											Guinea											Guyana											Honduras											Haiti											Hong Kong											Hungary											Iceland											India											Indonesia											Iraq											Ireland											Israel											Italy											Jamaica											Japan											Jordan											Kazakhstan											Kenya											Kosovo											Kyrgyz Republic											Laos											Latvia											Lebanon											Lesotho											Liberia											Libya											Lithuania											Luxembourg											Macau											Madagascar											Malawi											Malaysia											Maldives											Mali											Malta											Marshall Islands											Mauritania											Mauritius											Mexico											Micronesia											Moldova											Mongolia											Montenegro											Morocco											Mozambique											Namibia											Nepal											Netherlands											New Zealand											Nicaragua											Niger											Nigeria											North Macedonia											Norway											Oman											Pakistan											Palau											Panama											Papua New Guinea											Paraguay											Peru											Philippines											Poland											Portugal											Qatar											Republic of the Congo											Romania											Rwanda											Saint Kitts and Nevis											Saint Lucia											Saint Vincent and the Grenadines											Samoa											Sao Tome and Principe											Saudi Arabia											Senegal											Serbia											Seychelles											Sierra Leone											Singapore											Slovakia											Slovenia											Somalia											South Africa											South Korea											South Sudan											Spain											Sri Lanka											Suriname											Sweden											Switzerland											Taiwan											Tajikistan											Tanzania											Thailand											Timor-Leste											Togo											Trinidad and Tobago											Tunisia											Türkiye											United Arab Emirates											Uganda											Ukraine											United Kingdom											Uruguay											Uzbekistan											Vietnam											West Bank and Gaza											Zambia											Zimbabwe															Build A Custom Report																						On This Page				search													>																										EXECUTIVE SUMMARY																1. Openness To, and Restrictions Upon, Foreign Investment																																							Policies Towards Foreign Direct Investment																																																						Limits on Foreign Control and Right to Private Ownership and Establishment																																																						Other Investment Policy Reviews																																																						Business Facilitation																																																						Outward Investment																																																			2. Bilateral Investment and Taxation Treaties																3. Legal Regime																																							Transparency of the Regulatory System																																																						International Regulatory Considerations																																																						Legal System and Judicial Independence																																																						Laws and Regulations on Foreign Direct Investment																																																						Competition and Antitrust Laws																																																						Expropriation and Compensation																																																						Dispute Settlement																																																				ICSID Convention and New York Convention																																												Investor-State Dispute Settlement																																												International Commercial Arbitration and Foreign Courts																																																																																				Bankruptcy Regulations																																																			4. Industrial Policies																																							Investment Incentives																																																						Investment Aid																																																						Access to Finance																																																				Research and Development																																												Incentives for Green Energy, Business Regeneration and Sustainability																																																																																				Foreign Trade Zones/Free Ports/Trade Facilitation																																																						Performance and Data Localization Requirements																																																			5. Protection of Property Rights																																							Real Property																																																						Intellectual Property Rights																																																			6. Financial Sector																																							Capital Markets and Portfolio Investment																																																						Money and Banking System																																																						Foreign Exchange and Remittances																																																				Foreign Exchange																																												Remittance Policies																																																																																				Sovereign Wealth Funds																																																			7. State-Owned Enterprises																																							Privatization Program																																																			8. Responsible Business Conduct																																							Climate Issues																																																			9. Corruption																10. Political and Security Environment																11. Labor Policies and Practices																12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs																13. Foreign Direct Investment Statistics																14. Contact for More Information																						Tags																					Bureau of Economic and Business Affairs																								Bureau of European and Eurasian Affairs																								Malta
- Malta Regional Security Office Receives Training from U.S. Marine Corps’ FAST Company Small but mighty, the Regional Security Office at the U.S. Embassy in Valletta, Malta, strives to stay on top of its game by embracing training opportunities.This spring, Regional Security Office Malta hosted a group of U.S. Marines from Fleet Anti-Terrorism Security Team (FAST) Company Europe for five days of exercises and drills meant to bolster the embassy’s readiness and strengthen their relationship with Maltese security forces.During the visit, the FAST Marines trained U.S. Embassy Malta’s Marine Security Guards (MSG), local guard force (LGF), and the ambassador protection detail (APD) on combat casualty care, shooting, motorcade security, small unit tactics, and detainee procedures.As part of the training, FAST Marines developed complex scenario-based drills that forced embassy security personnel and local officers to execute their operational plans and procedures, improving interoperability and readiness. By gauging and refining the response of host-nation and embassy security forces, these specialized Marines strengthened security cooperation.This visit from FAST also provided embassy personnel with the opportunity to work side by side with Maltese security forces. These local forces, which include the Armed Forces of Malta and the Malta Police Force, are the embassy’s first responders in case of an emergency. Usually, the local forces do not train in conjunction with the embassy’s security officers. However, during the Marines’ visit, the Maltese security forces also received training to enhance their defensive capabilities, as well as bolster teamwork and coordination with the MSG, LGF, and APD.“Our goal is to ensure teamwork from all tactical elements during a crisis, despite their different mission sets,” said Assistant Regional Security Officer (ARSO) Benjamin Andrews.“FAST’s mission is to augment embassy security during a crisis. Having the FAST Marines work and train with our security elements and the Malta security forces allowed each unit to understand one another’s capabilities, learn how to better communicate with each other, and how to be an asset during a wide range of emergencies,” continued Andrews.Regional Security Officer Eric Sheffield, who used to be a FAST Marine, first hosted FAST for training exercises in 2021 after a suggestion made by Defense Attaché Mateo Robertaccio. After seeing the immense value of this specialized training, Sheffield is intent on continuing this annual engagement.“The first training engagement was in May 2021. We are now working to improve and expand this annual training engagement, with an eye towards strengthening relationships and cooperation with Maltese security forces. The Marines are keen to train with us, and we love having them, so we will continue to pursue these engagements,” said Sheffield.
- Malta HomeReportsOffice to Monitor and Combat Trafficking in Persons2023 Trafficking in Persons Report&#8230;Malta				hide	document.addEventListener("DOMContentLoaded", function(event) {	if(window.jQuery) {		jQuery( document ).ready(function() {			if (jQuery(".bc_middle").hasClass("collapse")) {				jQuery(".bc_ellipse").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});				jQuery(".bc_hide").click(function(){					jQuery(".bc_hide").toggleClass("visible");					jQuery(".bc_middle").toggle();					jQuery(".bc_ellipse").toggle();					jQuery(".bc_content").toggleClass("noflex");					jQuery(".block_breadcrumbs_content").toggleClass("noflex");				});			} else {				jQuery(".bc_ellipse").hide();			}		});	}});																							2023 Trafficking in Persons Report: Malta																																					Office to Monitor and Combat Trafficking in Persons																																																																																																				 In this section										/																							MALTA (Tier 2)																																													MALTA (Tier 2)																															PRIORITIZED RECOMMENDATIONS:																																																																																		PROSECUTION																																																																																		PROTECTION																																																																																		PREVENTION																																																																																		TRAFFICKING PROFILE:																																																																																																								MALTA (Tier 2)				The Government of Malta does not fully meet the minimum standards for the elimination of trafficking but is making significant efforts to do so. The government demonstrated overall increasing efforts compared with the previous reporting period, considering the impact of the COVID-19 pandemic, if any, on its anti-trafficking capacity; therefore Malta remained on Tier 2. These achievements included investigating and prosecuting more suspected traffickers, updating its NAP, increasing funding for victim assistance, and continuing to provide an extensive week-long trafficking awareness campaign for the third consecutive year. The government also hosted a regional training and a series of seminars, which included trafficking survivor panelists. However, the government did not meet the minimum standards in several key areas. For the second consecutive year, the government did not report convicting any traffickers, which undermined efforts to combat human trafficking and victims’ access to justice. Gaps in victim identification persisted and the government did not report identifying any Maltese, children, asylum-seekers, or undocumented migrants as trafficking victims. The government continued to lack coordination among ministries and has never awarded restitution or compensation to any trafficking victims. The government did not effectively enforce labor regulations to prevent recruitment fees charged to workers, which increase workers’ vulnerability to trafficking, or make concrete efforts to increase oversight and regulation of massage parlors where there was a higher incidence of trafficking indicators.																																					PRIORITIZED RECOMMENDATIONS:						    																																															Increase efforts to vigorously and expeditiously investigate and prosecute trafficking crimes.Increase efforts to convict traffickers, including complicit officials, and seek adequate penalties for convicted traffickers, which should involve significant prison terms.Ensure relevant staff and officials proactively identify trafficking victims, including Maltese nationals, especially among vulnerable populations, like children, migrant workers, asylum-seekers, and individuals in commercial sex.Institutionalize victim-centered and trauma-informed anti-trafficking training for front-line officials, police officers, prosecutors, and judges with a focus on the use of psychological coercion and fraud as means of trafficking.Improve sentencing practices by sensitizing judges to the severity of trafficking crimes and the full range of penalties available.Allow formal victim identification by and referral from entities other than the police, including labor inspectors, asylum case workers, health care professionals, social workers, and NGOs.Ensure victims could be formally identified without the requirement to cooperate with law enforcement.Improve effective leadership and prioritization of human trafficking, as well as streamline anti-trafficking coordination and communication efforts among ministries.Enact a legal provision to ensure victims are not inappropriately penalized solely for unlawful acts committed as a direct result of being trafficked.Increase migrant worker protections against labor trafficking by implementing strong regulations and oversight of recruitment companies that are consistently enforced, including prosecuting for fraudulent labor recruitment.Implement license controls and oversight of massage parlors and increase screening for trafficking victims.Improve efforts to proactively inform foreign worker groups of worker rights and responsibilities and victim assistance resources in their native languages.Ensure trafficking victims have consistent early access to free legal aid.Enforce the law prohibiting recruitment fees charged to workers and ensure any recruitment fees are paid by employers.Increase collaboration between police and other stakeholders during investigations to decrease the length of investigations and prosecutions and enhance the likelihood of successful convictions.Increase awareness of and trafficking survivor access to damages and compensation, regardless of their nationality or residency status.Increase prosecutor awareness of and efforts to systematically request restitution for survivors in criminal trials.Consider removing the maximum limits for compensation and damages and allowing confiscated assets from traffickers to be awarded to victims.Consider establishing specialized prosecutors dedicated to human trafficking and consider prosecution-assisted investigations on trafficking cases.Increase training for and efforts to pursue financial crime investigations in tandem with human trafficking cases.																																												PROSECUTION						    																																															The government minimally increased law enforcement efforts but did not convict any traffickers for the second consecutive year. Article 248A-G of the criminal code criminalized sex trafficking and labor trafficking, and it prescribed penalties of six to 12 years’ imprisonment. These penalties were sufficiently stringent and, with respect to sex trafficking, commensurate with those prescribed for other serious crimes, such as rape. In 2022, the police vice squad, consisting of four teams and responsible for investigating human trafficking and other crimes, initiated 12 new investigations – seven for sex trafficking and five for labor trafficking. This was a slight increase compared with nine investigations initiated in 2021, but less than the 16 new investigations initiated in 2020. Five investigations remained ongoing from prior years, including two for sex trafficking and three for labor trafficking. In 2022, the Attorney General&#8217;s office began taking a more direct role in trafficking cases and became the main prosecutor for such cases. Prosecutors initiated criminal proceedings against six suspects for sex trafficking but none for labor trafficking; this was an increase compared with zero prosecutions in 2021, two in 2020, and zero in 2019. Ten prosecutions remained ongoing from prior years, including six for sex trafficking and four for labor trafficking. For the second consecutive year, the government did not report convicting any traffickers; this compared with the convictions of three traffickers in both 2019 and 2020, which included significant prison sentences. Following an earlier appeal by the Attorney General in January 2023, the Court of Criminal Appeal reversed the suspended sentence of one convicted trafficker and the acquittal of the second, sentenced them to six years’ imprisonment, imposed a fine, and ordered the forfeiture of all the property appertaining to them. Perennial issues with rule of law, corruption, slow court proceedings, and an understaffed police force continued to hamper prosecutions and convictions. Trafficking convictions were often overturned on appeal for administrative technicalities. Experts continued to urge the government to increase training for judges on psychological coercion as a means of trafficking, as cases could sometimes be dismissed or pursued as lesser crimes if physical violence and injuries were not sustained by trafficking victims. There were no new investigations, prosecutions, or convictions of government employees allegedly complicit in trafficking crimes; however, official complicity in trafficking crimes remained a significant concern. In its 2021 report, GRETA stressed the government’s failure to convict traffickers and the absence of effective, proportionate, and dissuasive penalties undermined efforts to combat human trafficking and victims’ access to justice. GRETA also expressed concern the length of criminal proceedings negatively impacted victims, who could experience re-victimization through repeated confrontations with alleged traffickers. GRETA noted the government lacked specialized judges for trafficking cases and did not pursue financial crime investigations in tandem with human trafficking cases and recommended the government consider addressing both deficiencies.The government provided training to the police vice squad and officials working with asylum-seekers – including welfare officers, socials workers, and psychologists – on victim identification, communication approaches, ethics while working with survivors, and mental health issues. In October 2022, with funding from the EU and the Council of Europe, the government hosted and co-organized a regional training for 15 countries, which included representatives of foreign governments, judges, prosecutors, law enforcement, social and medical services, labor inspectors, civil society, and the media. In October 2022, in partnership with the UN Finance Against Slavery and Trafficking Initiative, the government held a series of seminars focused on financial structures underlying and facilitating human trafficking and links between trafficking and money laundering; panelists included trafficking survivors.																																												PROTECTION						    																																															The government maintained protection efforts. Police and Agenzjja Appogg, a government office within the Foundation for Social Welfare Services (FSWS) that provided national assistance to trafficking victims, identified 14 foreign trafficking victims in 2022 (including 12 sex trafficking victims and two forced labor victims). This was a slight decrease compared with 18 victims identified in 2021. In 2022, Agenzjja Appogg initially identified nine potential victims, while the police initially identified five victims as a result of investigations and formally confirmed their victim status. All identified victims were foreign national adults. The government had a 2014 NRM, and Agenzjja Appogg continued to utilize its own identification screening tool for trafficking victims who were self-identified or referred by an entity other than the police. However, gaps in victim identification remained, and, in 2022, the government did not report identifying any trafficking victims that were Maltese or among vulnerable populations, including children, migrant workers, or asylum-seekers. GRETA reported many front-line officials remained unaware of the NRM, and civil society highlighted a need to ensure wide dissemination of the mechanism to ensure uniform implementation. Trafficking victims could only be “formally” identified by the police vice squad, a decision that could not be challenged. However, staff from Agenzjja Appogg could be present during police interviews. In its 2021 report, GRETA noted that contrary to the NRM, civil society reported official identification of victims was sometimes dependent on the possibility of criminal proceedings against the trafficker. Immigration police reported systematically screening undocumented migrants upon their arrival using updated guidelines at detention centers. The Agency for the Welfare of Asylum Seekers, together with its vulnerability assessment team, screened asylum-seekers for trafficking indicators with a new identification protocol tool and a previously existing referral protocol form; however, the government did not report identifying any victims among this population. Officials from the Ministry for Home Affairs and National Security and Law Enforcement, in partnership with civil society, also conducted victim identification among asylum-seekers when they submitted requests for international protection. In its 2021 report, GRETA noted the preliminary assessment was limited to the identification of cases where vulnerability was immediately obvious, such as with unaccompanied children. The lack of sufficient resources to streamline procedures and build capacity at migrant detention centers may have affected the quality of victim screening. Police continued to screen for sex trafficking indicators among individuals in commercial sex. In its 2021 report, GRETA noted the lack of a multidisciplinary approach to trafficking victim identification and the need for additional personnel resources.The FSWS continued to coordinate with the police, legal aid, and health services to provide quality care to victims. Government officials continued to work collaboratively with NGOs. The government provided €157,755 ($168,542) for victim care in 2022, including salaries for social workers; an increase compared with €129,188 ($136,953) in 2021. Police continued to utilize the national standard referral procedures to systematically refer victims to Agenzjja Appogg. Front-line officials referred all victims to Agenzjja Appogg in 2022 and all accepted some form of assistance. At least 10 victims received accommodation at a government-run shelter, funded by the EU, and some also utilized cultural mediators, interpreters, accompaniment to medical appointments, and other services; this was similar to the 14 victims assisted at the shelter in 2021. The government had dedicated services available to both foreign national and Maltese victims, and once victims were referred to care, specialized social workers at FSWS assessed the long-term needs of each victim; assistance reportedly included shelter at a safehouse, food, psychological counseling, interpreters, cultural mediators, and medical and legal aid appointments, as well as assistance with obtaining legal status and job searches. To facilitate labor market access for applicants of international protection and foreign nationals, the government continued to fund free online English- and Maltese-language courses.The law provided victims a two-month reflection period to recover and contemplate cooperation with law enforcement. The safehouse operated by FSWS, but funded by the EU, could accommodate up to nine adult or accompanied child trafficking victims and was used for men and women. While rooms were separated by gender, the safehouse accommodated both men and women, which may have made female or child sex trafficking victims feel unsafe, could cause re-traumatization, and could undermine victim recovery. The government also had a Victim Support Agency (VSA) that assisted all crime victims who cooperated with law enforcement; services could include confidential emotional support and accompaniment to court, information about the release of an offender from custody, and legal advice; however, the VSA did not assist any trafficking victims in 2022. The Legal Aid Agency could legally represent low-income crime victims in a broad spectrum of litigations, defense, and advocacy, but no trafficking victims received this service in 2022. GRETA’s 2021 report noted, per the government’s 2014 Legal Aid law, legal assistance should have been available to all crime victims; however, as of its publication, all trafficking victims had been represented by NGO lawyers instead of the established Legal Aid Agency. GRETA urged the government to increase efforts to ensure victims received legal assistance and free legal aid at an early stage. The government stated victims could receive protection services regardless of their agreement to cooperate with law enforcement. While there was no time limit for victims to access some services, such as services from social workers, their stay in a general shelter or a trafficking-specific safehouse could not exceed 180 days, with some exceptions. Victims had freedom of movement in government shelters and the safehouse. The Child Protection Agency was designated as the responsible agency for vulnerability assessment and interagency coordination for child victims, including formal written procedures for police interaction and coordination requirements. Although the government had not identified any, unaccompanied child trafficking victims could stay in foster homes.Law enforcement endeavored to conduct discreet interviews with potential victims to protect their identities and ensure their safety. To avoid re-traumatization, the government provided victims with protective support, including the option to testify via video, the absence of the suspected trafficker in court, accompaniment to court by a social worker, and victim support sessions before and after court hearings. Foreign victims who decided to assist police in prosecuting trafficking cases were entitled to a renewable six-month temporary residence permit free of charge, police protection, legal assistance, and the right to obtain flexible work permits; however, the government did not report whether it provided these protections to any victim during the reporting period. The government could grant refugee status to victims as an alternative to removal to countries where they may face hardship or persecution; however, the government did not report providing this status to any victims.The government could grant a maximum of €23,300 ($24,893) of compensation to victims from state funding. However, the government had not reported issuing compensation to any victims of trafficking to date. Legal aid was not available for victims seeking compensation from the government, and government compensation was not available for foreign trafficking victims without residency. Furthermore, GRETA reported the law did not allow assets confiscated from traffickers to be used as compensation or restitution for victims. In its 2021 report, GRETA urged the government to adjust or remove the maximum limits for compensation and restitution; allow confiscated assets from traffickers to be awarded to victims; and ensure state compensation was available to all trafficking victims, regardless of their nationality or residency status. In addition, prosecutors could file for restitution from traffickers in criminal cases; however, courts have never reported awarding restitution to any victims to date, and GRETA noted limited awareness of the possibility of restitution by lawyers and judicial authorities. Victims could also file a civil suit to receive a maximum of €10,000 ($10,684) in damages; the government did not report whether any victims filed suits during the reporting period, and the government has never reported awarding damages to any trafficking victims to date. Victims could also receive back-payment of wages earned by filing a complaint through the Department for Industrial and Employment Relations; the government did not report doing so during the reporting period. GRETA urged the government to review the eligibility criteria for state compensation and add the concept of trafficking survivor restitution to training programs for judges and prosecutors. The government did not have a legal provision to ensure victims were not inappropriately penalized solely for unlawful acts committed as a direct result of being trafficked. GRETA recommended the enactment of such a provision and the dissemination of the non-punishment principal to not only judges but all law enforcement to prevent victim penalization as early as possible.																																												PREVENTION						    																																															The government maintained uneven prevention efforts. In 2020, the Human Rights Directorate (HRD) became responsible for coordinating national anti-trafficking and commercial sex efforts, as well as implementing the NAP, coordinating data collection, and reviewing policy and practice. The HRD did not meet during the reporting period. In 2021, the HRD dissolved the inter-ministerial anti-trafficking committee and assumed most of its responsibilities. Meanwhile, a previously non-operational anti-trafficking stakeholder task force was renewed in August 2021 and was responsible for operational coordination of trafficking efforts; however, this taskforce was later dissolved as well. In July 2022, the government established another new coordinating body, the Anti-Human Trafficking Inter-Ministerial Committee (IMC), which was responsible for functioning as the national rapporteur, strengthening national cooperation, and monitoring trafficking efforts. The IMC met for the first time in October 2022 and once more in January 2023. In its 2021 report, GRETA again recommended the government consider establishing an independent national rapporteur to ensure an impartial review of government anti-trafficking efforts. Coordination efforts within Malta were unstable over the past few years, with the establishment and dissolution of several coordinating bodies within a short period of time. Authorities and NGOs continued to report a lack of effective leadership, corruption allegations, and insufficient prioritization of human trafficking, as well as a need to streamline anti-trafficking coordination and communication efforts among ministries, which hindered progress.Similar to prior allocations in 2020 and 2021, in 2022, the government allotted HRD another €300,000 ($320,513) to draft a new anti-trafficking NAP, which began in September 2022, and continue to raise public awareness. The government updated and continued to implement its 2020-2023 anti-trafficking NAP; however, it continued to focus primarily on coordination and prevention efforts and did not address key gaps in prosecution or victim identification and assistance. The HRD also developed a monitoring plan for the implementation of the NAP and circulated this plan to relevant government stakeholders and various international bodies throughout the reporting period. As in prior years, the government distributed €25,409 ($27,146) for trafficking-specific awareness raising during the reporting period. However, the government did not allocate funding specifically for training in 2022, compared with €16,000 ($17,094) in 2020 and 2021. In July 2022, the government, predominantly coordinated by HRD, launched an extensive week-long awareness campaign, which included a video broadcasted on national TV, radio stations, social media portals, and all local media platforms. The awareness campaign also included posters displayed on social media accounts in six languages and moving ads on public transportation; outreach to asylum-seekers at community and detention centers; two events for the general public on human trafficking; and several networking and awareness events with high-level speakers for government, diplomatic, and law enforcement officials. In October 2022, in partnership with the OSCE, the government held a seminar focused on preventing trafficking and labor exploitation in supply chains.The government continued to cooperate with Frontex, the European Border and Coast Guard Agency, and the Government of Libya to reduce the number of undocumented migrants entering Malta from Libya. NGOs criticized this coordinated effort, however, because it often resulted in the occupants of vessels rescued in the Libyan search-and-rescue area being returned to Libyan shores; NGOs cited severe security and human rights conditions inside Libya and Libyan detention centers and a heightened trafficking risk for the more than 12,000 undocumented migrants held in detention centers. Despite government efforts to the contrary, approximately 444 undocumented migrants arrived in Malta in 2022, a significant decrease compared with 830 in 2021; 2,300 in 2020; and 3,100 in 2019, and the government placed them in one of four of its detention centers. GRETA urged Maltese authorities to provide asylum-seekers with informational materials on the rights of trafficking victims, as well as the services and assistance measures available and how to access them.Fraudulent labor recruitment remained a significant concern. Through a government initiative to increase economic growth, the presence of foreign national workers, most of whom were employed in low-earning vocations, increased significantly to approximately 78,000; however, the government did not correspondingly report efforts to proactively inform foreign workers of their rights and responsibilities and victim assistance resources, aside from information available online or potentially from a labor inspector. The Employment Agencies Act (EIRA) regulated labor recruiters and required recruiters to have a license. The EIRA did not allow workers to be charged recruitment fees by employment or recruitment agencies. However, this practice continued, and the government did not enact effective law enforcement measures to deter agencies from continuing the practice. In October 2022, in response to job strikes and claims foreign national workers often paid 50 percent of their earnings to recruitment companies, the government enacted regulations for digital platform work; however, NGOs criticized the efficacy of this effort, claiming it was fraught with loopholes. Experts urged the government to enforce the law prohibiting recruitment fees charged to workers and ensure employers paid any recruitment fees. Foreign workers and asylum-seekers could not leave their employers without prior government permission, as work permits were tied to a specific employer, which may have increased their vulnerability to trafficking. GRETA and NGOs continued to report a lack of oversight and regulation on the licensing of massage parlors, which had a higher likelihood of sex trafficking occurring. In its 2021 report, GRETA relayed concerns expressed by civil society that police did not proactively identify trafficking victims in massage parlors. The national welfare agency continued to operate a 24-hour hotline for individuals in need of social services and referral to care, including potential trafficking victims; operators received training in trafficking victim identification. The government identified one potential trafficking victim through the hotline during the reporting period. The government did not make efforts to reduce the demand for commercial sex acts.																																												TRAFFICKING PROFILE:						    																																															As reported over the past five years, human traffickers exploit domestic and foreign victims in Malta. Sex traffickers exploit foreign national and Maltese women and children, and labor traffickers exploit foreign men and women. Labor trafficking victims originate from the People’s Republic of China, Eastern Europe, Central America, and Southeast Asia, with increasing numbers from the Philippines. Women from Southeast Asia working as domestic workers, foreign women working in massage parlors, and women from Central and Eastern Europe, Russia, and Ukraine working in nightclubs represent populations vulnerable to trafficking. The approximately 9,000 refugees and 4,000 asylum-seekers residing in Malta are vulnerable to trafficking in the country’s informal labor market, including in the construction, hospitality, and domestic work sectors. Cooperation with the Government of Libya prevents thousands of undocumented migrants and refugees from arriving at Maltese ports; however, occupants of vessels rescued in the Libyan search-and-rescue area are returned to Libya, where NGOs cite severe security and human rights conditions and a heightened risk of trafficking for undocumented migrants. Conationals of trafficking victims and Maltese citizens frequently work together to exploit victims.																																				    							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