B 1075
L.N. 165 of 2020
FINANCIAL INSTI TUTIONS ACT
(CAP. 376)
European Passport Rights for Fin ancial Institutions Regulations , 
2020
IN EXERCISE of the powers conf erred by article 12(1)(b), (c),
(d) and (h) of the Financial Institutions Act, the Minister responsible
for the regulation of Financial Services, acting on the advice of the
Malta Financial Services Authority, has made the following
regulations:-
PRELIMINARY
Citation and 
scope.1. (1) The title of these regulations is the European Passport
Rights for Financial Institutions Regulations, 2020.
(2) The purpose of these regulations is to transpose Articles 19 ,
28, 29, 30, 100 (in part) and 111 (in p art) of Directive (EU) 2 015/2366
of the European Parliament and of the Council of 25 November 20 15
on payment services in the inte rnal market, amending Directives 2002/
65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/
2010, and repealing Directive 2007/ 64/EC, and to provide for an cillary
matters related thereto.
Interpretation. 2. (1) In these regulations, unless the context otherwise
requires –
Cap. 376. "the Act" means the Fina ncial Institutions Act; 
"Commission Delegated Regulation" means Commission
Delegated Regulation (EU) 2017/2055 of 23 June 2017
supplementing Directive (EU) 2015/2366 of the European
Parliament and of the Council wit h regard to regulatory technic al
standards for the cooperation and exchange of information
between competent authorities re lating to the exercise of the
right of establishment and the freedom to provide services of
payment institutions, as ma y be amended from time to time;
Cap. 330."competent authority" means the Malta Financial Services
Authority established under th e Malta Financial Services
Authority Act;
"Electronic Money Directive" means Directive 2009/110/Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 20,397, 30 ta’ April, 2020
Taqsima B 
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EC of the European Parliament and of the Council of 16
September 2009 on the taking up, pursuit and prudential
supervision of the business of electronic money institutionsamending Directives 2005/60/EC and 2006/48/EC and repealing
Directive 2000/46/EC as may be amended from time to time and
includes any implementing measures that may be issuedthereunder;
"European financial institution" means a legal person
authorised by a European re gulatory authority to provide
payment services in terms of t he Payment Services Directive
and, or to issue and, or distribute and, or redeem electronicmoney in terms of th e Electronic Money Di rective, or a person
registered under the Payment Services Directive to providesolely account information services;
"European regulatory authority" means a body that is in
another Member State and is empowered by law or regulation tosupervise payment institutions , electronic money institutions
and, or account information service providers;
"European right" means the entitlement of a person to
engage an agent, or to establish a branch, or to appoint adistributor, or to provide services, in a Member State, other t han
that in which it has its registered office or, if under its nat ional
law it has no registered office, the Member State in which it h as
its head office:
(a) in accordance with the Treaty of Rome signed
in 1957, establishing the European Economic Communityas subsequently amended, and as applied in the Member
States; and
(b) subject to the requirements of the Payment
Services Directive and, or the  Electronic Money Directive,
and subject to any regulations  or Financial Institutions
Rules issued under the Act implementing such
requirements;
"home Member State" means:
(a) where the European financial institution or the
Maltese financial institution is a natural person, the
Member State in which his or her residence is situated;
(b) where the European financial institution or the
Maltese financial institution is a legal person, the Member
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State in which its registered office is situated or, if under i ts
national law it has no registered office, the Member State in
which its head office is situated;
"host Member State" means the Member State in which a
Maltese financial institution or  a European financial institution,
as applicable, exercises or pr oposes to exercise a European rig ht;
"Maltese financial institution" means a legal person
licensed by the competent authority in terms of the Act to
provide payment services and, or to issue and, or distribute and,
or redeem electronic money, o r a person registered by the
competent authority in terms of the Act to provide solely accou nt
information services;
"Payment Services Directive" means Directive (EU) 2015/
2366 of the European Parliament and of the Council of 25
November 2015 on payment services in the internal market,
amending Directives 2002/65/ EC, 2009/110/EC and 2013/36/EU
and Regulation (EU) No 1093/2010, and repealing Directive
2007/64/EC, as may be amended from time to time and includes
any implementing measures, impl ementing technical standards,
regulatory technical standards and similar measures that have
been or may be issued thereunder.
(2) Words and expressions used in these regulations
which are also used in the Act, but which are not definedherein, shall have the same meaning as in the Act.
PART I - EXERCISE OF PASSPORT RIGHTS BY EUROPEAN 
FINANCIAL INSTITUTIONS
Application for 
the exercise of a 
European right by European financial 
institutions - 
services.3. (1) A European financial institution seeking to provide
payment services and, or issue and, or distribute and, or redee m
electronic money in Malta in exercise of a European right under the
freedom to provide services sha ll communicate to its European
regulatory authority the informa tion prescribed in sub-regulation (2),
and shall thereafter be exempt from the provisions of article 3  of the
Act: 
Provided that this regulation shall not apply to a European
financial instituti on seeking to provide payment services and, or
distribute and, or redeem elect ronic money in Malta through an agent
and, or a distributor, as applicable.
(2) The information referred to in sub-regulation (1) shall be
the following:
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(i) its intention to provi de payment services and, or
issue, and or distribute and, or redeem electronic money in
Malta;
(ii) the name, the address and where applicable, the
authorisation number and the uni que identification number of th e
European financial institution;
(iii) whether the European financial institution intends to
issue and, or distribute and, or  redeem electronic money in Mal ta
and, or which payment services activities it intends to carry o ut;
(iv) where the European financial institution intends to
outsource operational functions o f payment services and, or of
the issuance and, or distributi on and, or redemption of electro nic
money to other entities in Mal ta, the operational functions of the
payment services and, or of the issuance and, or distribution a nd,
or redemption of electronic mone y which it will be outsourcing
to other entities in Malta; and
(v) any other information which may be required in terms
of Article 14(1) of the Commission Delegated Regulation.
(3) Within one month of receipt  of all of the information
referred to in sub-regulation (2), the competent authority shal l, in
terms of Article 28(2) of the Payment Services Directive, recei ve the
said information from the European regulatory authority by mean s of
the template set out in Annex V to the Commission DelegatedRegulation.
(4) Where the competent authori ty receives all the information
referred to in sub-regulation (2) from the European regulatoryauthority in accordance with Article 28(2) of the Payment Servi ces
Directive, it shall, within one  month of receipt of the said in formation,
assess that information and provi de the European regulatory aut hority
with relevant information in c onnection with the intended provi sion of
payment services and, or issuance, and or distribution and, orredemption of electronic money by the relevant European financi al
institution in the exercis e of a European right. 
(5) Where the European regulat ory authority does not agree
with the assessment of the compe tent authority, the latter shal l, in
terms of Article 28(2) of the Payment Services Directive, be in formed
of the reasons for its decision. 
(6) Within three months of receipt of all of the information
referred to in sub-regulation (2), the competent authority shal l, in
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terms of Article 28(3) of the Payment Services Directive, receive
communication of the European re gulatory authority’s decision.
 (7) Following communication to t he competent authority of the
European regulatory authority’s decision in terms of sub-regulation(6), the competent authority shall publish the information refe rred to in
sub-regulation (2)(ii) and (iii) in the public register establi shed and
maintained by the competent authority in accordance with articl e 8D
of the Act.
(8) In the event of a change regarding the information
communicated in accordance with sub-regulation (2), including any
additional entities to which activities are outsourced in Malta, thecompetent authority shall, in terms of Article 28(4) of the Pay ment
Services Directive and Article 16 of the Commission Delegated
Regulation, be informed of such  changes by the European regulat ory
authority and, in such cases, the provisions of sub-regulations  (3) to
(6) shall apply.
Application for 
the exercise of a 
European right 
by European financial 
institutions - 
branch.4. (1) A European financial insti tution seeking to establish
a branch in Malta in the exercise of a European right shall
communicate to its European regulatory authority the informatio n
specified in sub-regulation (2) and shall thereafter be exempt from the
provision of article 3 of the Act.
(2) The information referred to in sub-regulation (1) shall be
the following:
(i) its intention to establish a branch in Malta to provide
payment services and, or issue and, or distribute and, or redee m
electronic money;
(ii) the name, the address and, where applicable, the
authorisation number and the unique identificati on number of th e
European financial institution;
(iii) whether the European financial institution intends to
issue and, or distribute and, or redeem electronic money in Mal ta
and, or which payment services activities it intends to carry o ut;
(iv) the address of the proposed branch in Malta;
(v) the identity of those responsible for the management
of the proposed branch; 
(vi) a description of the org anisational structure of the
proposed branch;
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(vii) a business plan including a forecast budget
calculation for the first three financial years which
demonstrates that the European financial institution is able toemploy the appropriate and proportionate systems, resources
and procedures to operate soundly with regard to the proposed
provision of payment services and, or the issuance a nd, or the
distribution and, or the redempt ion of the electronic money
through the proposed branch in Malta; 
(viii) a description of the Eur opean financial institution’s
governance arrangements and internal control mechanisms,including administrative, risk management and accountingprocedures, which demonstrates that those governance
arrangements, control mechanisms and procedures are
proportionate, appropriate, sound and adequate with regard tothe proposed provision of payment services and, or the issuance ,
distribution or redemption of the  electronic money through the
proposed branch in Malta; 
(ix) where the European financial institution intends to
outsource operational functions o f payment services and, or of
the issuance and, or distributi on and, or redemption of electro nic
money to other entities in Mal ta, the operational functions of
payment services and, or of the issuance and, or distribution a nd,
or redemption of electronic mone y which it will be outsourcing
to other entities in Malta; and
(x) any other information which may be required in terms
of Article 6(1) of the Commission Delegated Regulation.
(3) Within one month of receipt  of all of the information
referred to in sub-regulation (2), the competent authority shal l, in
terms of Article 28(2) of the Payment Services Directive, recei ve the
said information from the European regulatory authority by mean s of
the template set out in Annex II to the Commission DelegatedRegulation.
(4) Where the competent authori ty receives all the information
referred to in sub-regulation (2) from the European regulatoryauthority in accordance with sub- regulation (3), it shall, with in one
month of receipt of the said in formation, assess that information and
provide the European regulatory authority with relevant informa tion in
connection with the intended pr ovision of payment services and,  o r
issuance and, or distribution and, or redemption of electronic money
by the relevant European financial institution in the exercise of a
European right. 
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(5) If the competent authority has any reasonable grounds for
concern in connection with the int ended establishment of the br anch in
Malta with regard to money launde ring or terrorist financing wi thin the
meaning of Directive (EU) 2015/849, it shall inform the Europea n
regulatory authority accordingly. 
(6) Where the European regulatory authority does not agree
with the assessment of the compe tent authority, the latter shal l, in
terms of Article 28(2) of the Payment Services Directive, be in formed
of the reasons for its decision.
(7) Within three months of receipt of all of the information
referred to in sub-regulation (2 ), the competent authority shal l, in
terms of Article 28(3) of the Payment Services Directive, receive
communication of the European re gulatory authority’s decision. 
(8) Upon entry in the public register of the home Member State
in terms of Article 14 of the Payment Services Directive, the Europeanfinancial institution may commence its activities in Malta thro ugh the
branch. The competent authority shall enter the branch of the
European financial institution in  the register established and
maintained by the competent authority in accordance with articl e 8D
of the Act. 
(9) The competent authority shall, in terms of Article 18(3) of
the Payment Services Directive, be informed by the Europeanregulatory authority of the date from which the European financ ial
institution shall commence its activities in Malta through the branch
by means of the template set out in Annex VI to the CommissionDelegated Regulation.
(10) In the event of a change regarding the information
communicated in accordance with sub-regulation (2), including anyadditional branches or entities to which activities are outsour ced in
Malta, the competent authority s hall, in terms of Article 28(4)  of the
Payment Services Directive and Article 8 of the Commission
Delegated Regulation, be informed of such changes by the Europe an
regulatory authority concerned and, in such cases, the provisio ns of
sub-regulations (3) t o (9) shall apply.
Application for 
the exercise of a European right 
by European 
financial institutions – an 
agent and 
distributor.5. (1) A European financial institution seeking to provide
payment services in Malta through an agent shall communicate to  its
European regulatory authority:
(i) its intention to provide  payment services in Malta
through an agent;
(ii) the name, the address and, where applicable, the
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authorisation number and the uni que identification number of th e
European financial institution;
(ii) the name, the address and, where applicable, the
unique identification code or  number of the proposed agent;
(iii) which payment services activities the European
financial institution intends to carry out in Malta; 
(iv) a description of the internal control mechanisms
that will be used by the proposed  agent in order to comply with
the obligations in relation to m oney laundering and terrorist
financing under Directive (EU) 2015/849, which shall be
updated without delay in the event of material changes to theparticulars communicated at the initial notification; 
(v) the identity of the directors and persons responsible
for the management of the proposed agent and, for agents otherthan payment service providers, evidence that they are fit and
proper persons;
(vi) where the European financial institution intends to
outsource operational functions o f payment services and, or of
the issuance and, or distributi on and, or redemption of electro nic
money to other entities in Mal ta, the operational functions of
payment services and, or of the issuance and, or distribution a nd,
or redemption of electronic mone y which it will be outsourcing
to other entities in Malta; and
(vii) any other information which may be required in terms
of Article 10(1) of the Commission Delegated Regulation.
(2) A European financial institution seeking to distribute and,
or redeem electronic money in M alta through a distributor shall
communicate to its European regulatory authority:
(i) its intention to distribute and, or redeem electronic
money in Malta through a distributor;
(ii) the name, the address and, where applicable, the
authorisation number and the uni que identification number of th e
European financial institution;
(iii) the name, the address and, where applicable, the
unique identification code or num ber of the proposed distributo r; 
(iv) a description of the internal control mechanisms
that will be used by the proposed  distributor in order to compl y
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with the obligations in re lation to money laundering and
terrorist financing under Directive (EU) 2015/849, which shall
be updated without delay in the event of material changes tothe particulars communicated a t the initial notification; 
(v) the identity of the dir ectors and persons responsible
for the management of the proposed distributor and, whereapplicable, for distributors other than payment service provide rs,
evidence that they are  fit and proper persons;
(vi) where the European financial institution intends to
outsource operational functions of the issuance and, ordistribution and, or redemption of electronic money to other
entities in Malta, the operationa l functions of the issuance an d, or
distribution and, or red emption of electroni c money which it wi ll
be outsourcing to other entities in Malta; and
(vii) any other information which may be required in terms
of the Commission Delegated Regulation.
(3) Within one month of receipt of all of the information
referred to in sub-regulations (1) or (2) as applicable, the co mpetent
authority shall, in terms of Article 28(2) of the Payment Servi ces
Directive, receive the informati on from the European regulatory
authority by means of the templates set out in Annexes III and IV to
the Commission Delegated Regulation.
(4) Where the competent authorit y receives all the information
referred to in sub-regulations (1) or (2), as applicable, from the
European regulatory authority in accordance with sub-regulation  (3), it
shall, within one month of receipt of the said information, ass ess that
information and provide the European regul atory authority with
relevant information in connection with the intended provision ofpayment services and, or distribution and, or redemption of ele ctronic
money, as applicable, by the rele vant European financial institution in
the exercise of a European right. 
(5) If the competent authority has any reasonable grounds for
concern in connection with the intended engagement of the agent  or
distributor, as applicable, with  regard to money laundering or terrorist
financing within the meaning of Directive (EU) 2015/849, it sha ll
inform the European regulatory authority accordingly. 
(6) Where the European regulatory authority does not agree
with the assessment of the compe tent authority it shall, in ter ms of
Article 28(2) of the Payment Ser vices Directive, provide the latter with
the reasons for its decision.
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(7) Within three months of receipt of all of the information
referred to in sub-regulation (1) or (2), as applicable and in terms of
Article 28(3) of the Payment Services Directive, the competent
authority shall receive communi cation of the European regulator y
authority’s decision. 
(8) Following communication to t he competent authority of the
European regulatory authority’s decision in terms of sub-regula tion
(7), the competent authority shall publish the information refe rred to in
sub-regulation (1)(i) to (iii),  in the public register establis hed and
maintained by the competent authority in accordance with articl e 8D
of the Act.
(9) Upon entry in the public register of the home Member State
i n  te rm s o f  A rti cle  1 4  o f  t h e P ay ment Services Directive, the a gent,
may commence its activities in Malta. 
(10) The competent authority shal l, in terms of Article 18(3) of
the Payment Services Directive, be informed by the Europeanregulatory authority of the date from which the European financ ial
institution shall commence its activities in Malta through the agent or
distributor by means of the templ ate set out in Annex VI to the
Commission Delegated Regulation.
(11) In the event of a change regarding the information
communicated in accordance wi th sub-regulation (1) or (2),
including any additional agents, distributors or entities to wh ich
activities are outsour ced in Malta, as applicable, the competen t
authority shall, in terms of Ar ticle 28(4) of the Payment Servi ces
Directive and Article 8 of the Commission Delegated Regulation,  be
informed of such changes by the European regulatory authority
concerned and, in such cases, t he provisions of sub-regulations  (3)
to (10) shall apply. 
Supervision of a 
European 
financial institution 
exercising a 
European right.6. (1) Where Malta is the host Member State, the competent
authority may require European financial institutions having agents or
branches in Malta to report periodically to the competent autho rity on
the activities carried out in Malta. 
(2) The reports referred to i n sub-regulation (1) shall be
required for information or statistical purposes and, as far as the agents
and branches conduct their activities under the right of establ ishment,
to monitor compliance with articles 11A and 11B of the Act. 
(3) The power of the competent authority to require periodic
reports under sub-regulation (1) shall be exercised in close co operation
with the Central Bank where reports as referred to in the said sub-
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regulation are required to monitor compliance with articles 11A  and
11B of the Act. 
(4) The information which European financial institutions shall
provide in the periodic reports r equired by the competent autho rity in
terms of sub-regulation (1) and the form and frequency of such reports
shall be prescribed in a Fin ancial Institutions Rule.
(5) The competent authority shall provide the European
regulatory authority of the home Member State with all essentia l and,
or relevant information, in particular in the case of infringem ents or
suspected infringements by an agent or a branch of a European
financial institution, and where such infringements occurred in  t h e
context of the freedom to provide services. In that regard, the
competent authority shall communicate to the European regulator y
authority all relevant information and, on its own initiative, all
essential information, including on the compliance with the con ditions
under Article 11(3) of the P ayment Services Directive.
(6) The competent authority shal l cooperate closely with the
Central Bank in order to ensure and monitor effective complianc e with
articles 11A and 11B of the Act by agents and branches conducte d
under a right of establishment and, in the event of an infringe ment or
suspected infringement of articl es 11A and 11B of the Act by an agent
or a branch conducted under the right of establishment, the com petent
authority in close cooperation wi th the Central Bank shall take  a l l
appropriate measures to e nsure such compliance.
(7) Without prejudice to any provisions on anti-money
laundering and combatting the funding of terrorism, and to facilitate
supervision by the competent auth ority, the Central Bank and th e
European regulatory authority of the home Member State, the
competent authority may, in cooperation with the Central Bank,require European financial institutions operating in Malta through
agents under the right of establishment, the head office of whi ch is
situated in another Member State, to appoint a central contact point in
Malta to ensure adequate communication and information reportin g on
compliance with articles 11A a nd 11B of the Act  and the provisions of
Titles III and IV of the Payment Services Directive as transpos ed in a
directive issued by the Central Bank under the Central Bank of Malta
Act, including by providing the co mpetent authority with docume nts
and information upon request. 
(8) The competent authority sh all, upon the appointment of a
central contact point by a Europe an financial institution in te rms of
sub-regulation (7), notify the Central Bank of such appointment .
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(9) A central contact point appoi nted by a European financial
institution pursuant to sub-regul ation (7) shall provide the co mpetent
authority with any documents and, or information required by th e
competent authority.
On-site 
inspections by 
the European 
regulatory authority.7. (1) The competent authority shall cooperate with the
European regulatory authority in order to carry out the control s and
take the necessary steps to ensu re continued compliance in resp ect of
an agent or branch located in Malta of a European financial ins titution.
(2) By way of cooperation in accordance with sub-regulation
(1), the competent authority shall, in terms of Article 29(1) o f the
Payment Services Directive, receive written notification from t he
European regulatory authority wh enever the latter intends to ca rry out
an on-site inspection in the territory of Malta.
(3) Notwithstanding the provisi ons of sub-regulation (2), the
competent authority may be requested by the European regulatory
authority to carry out on-site inspections of the European financial
institution concerned on behalf of such European regulatory aut hority.
Measures in 
case of non-compliance, including 
precautionary 
measures.8. (1) Without prejudice to the responsibility of the
European regulatory authority of  the home Member State, where t he
competent authority ascertains that a European financial instit ution
having agents or branches or distributors in Malta does not com ply
with the provisions of the Act and any regulations or Rules iss ued
thereunder, other than articles 1 1A and 11B of the Act, the com petent
authority shall inform the Europe an regulatory authority of the  home
Member State without delay:
Provided that, where the competent authority ascertains
that a European financial institution having agents or branches  o r
distributors in Malta  does not comply with articles 11A and 11B of the
Act, the competent authority shall cooperate  with the Central B ank for
the purposes of informing the Eu ropean regulatory authority of the
home Member State without delay in terms of Article 30(1) of th e
Payment Services Directive as transposed in Directives issued b y the
Central Bank under the Central Bank of Malta Act. 
(2) In emergency situations , where immediate action is
necessary to address a serious t hreat to the collective interes ts of those
making use of the services of the European financial institutio n in
Malta through an agent or branch or distributor, the competent
authority may, in parallel to the cross-border cooperation betw een the
competent authority and the Eur opean regulatory authority of th e
home Member State and pending measures by the said Europeanregulatory authority of the home Member State, take precautiona ry
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measures:
 Provided that where a proposed precautionary measure
relates to a failure to comply with articles 11A or 11B of the Act, such
precautionary measure shall be taken in close cooperation with the
Central Bank.
 (3) Any precautionary measures referred to in sub-article (2)
shall be appropriate and proportionate to their purpose to protect
against a serious threat to the collective interests of those m aking use
of the services of the European f inancial institution in Malta through
an agent or branch or distributor. The said precautionary measu res
shall not result in a preference for those making use of such s ervice in
Malta over those making use of such services  in other Member St ates. 
(4) Any precautionary measures referred to in sub-article (2)
shall be temporary and shall be terminated when the serious thr eats
i d e n t i f i e d  a r e  a d d r e s s e d ,  i n c l u d i n g  w i t h  t h e  a s s i s t a n c e  o f ,  o r  in
cooperation with, the European regulatory authority of the home
Member State or, as provided for in Article 27(1) of the Paymen t
Services Directive, with the EBA. 
(5) Where compatible with the emergency situation referred to
in sub-article (2), the competent  authority, , shall inform the  European
regulatory authority of the hom e Member State and those of any other
Member State concerned, the European Commission and the EBA inadvance, and in any case without undue delay, of the precaution ary
measures taken under sub-article (2) and of their justification . 
(6) In the event of an infringement or suspected infringement
of the Act or regulations or Rules issued thereunder, by an age nt or
branch or distributor of a European financial institution condu cted
under the right of establishment,  the competent authority shall have the
power to exercise all the powers granted to it under the Act an d any
regulations and Rules issued the reunder in relation to such age nt or
branch or distributor: 
Provided that in relation to an infringement or suspected
infringement of Articles 11A or 11B of the Act, in exercising the
powers granted to it under the Act and any regulations or Rules issued
thereunder, the competent authority shall collaborate closely w ith the
Central Bank. 
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PART II - 
EXERCISE OF PASSPORT RIGHTS BY MALTESE FINANCIAL 
INSTITUTIONS
Application for 
the exercise of a 
European right by Maltese 
financial 
institutions - services.9. (1) A Maltese financial institution may exercise a
European right to provide payment services and, or issue and, o r
distribute and, or redeem electr onic money in another Member St ate
under the freedom to provide services if it satisfies the condi tions set
out in this regulation:
Provided that this regulation shall not apply to a Maltese
financial institution seeking to  provide payment services and, or
distribute and, or redeem electr onic money in another Member St ate
through an agent and, or a distributor, as applicable.
(2) A Maltese Financial Institu tion wishing to provide payment
services and, or issue and, or di stribute and, or redeem electr onic
money, for the first time, in another Member State in the exerc ise of a
European right shall give notice of its intention to provide pa yment
services and, or to issue and, or  distribute and, or redeem ele ctronic
money in another Member State, wh ich notice shall be provided in
English or in another language  accepted by both the competent
authority and the European regulatory authority and shall conta in the
following information: 
(i) the name and address of the Maltese financial
institution;
(ii) the licence number or registration number of the
Maltese financial institution, as applicable; 
(iii) the Member State in which the Maltese financial
institution intends to provide payment services and, or issue and,
or distribute and, or redeem  electronic money; 
(iv) the payment services w hich the Maltese financial
institution intends to provide i n such other Member State and
whether it intends to issue and, or distribute and, or redeem
electronic money in such  other Member State;
(v) where the Maltese financial institution intends to
outsource operational functions of payment services and, or ofthe issuance and, or distributi on and, or redemption of electro nic
money to other entities in a host Member State, the operationalfunctions of payment services and, or of the issuance and, ordistribution and, or redemption of  electronic money which it wi ll
be outsourcing to other entities in that host Member State; and
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(vi) any other information which may be required in terms
of Article 14(1) of the Commission Delegated Regulation.
(3) Within one month of receipt of all of the information
referred to in sub-regulation (2),  the competent authority shal l send to
the European regulatory authority the said information by means  of the
template set out in Annex V to the Commission Delegated Regulation.
(4) Where the European regulatory authority receives all the
information referred to in sub-regulation (2) from the competen t
authority in accordance with sub-regulation (3), it shall, in terms of
Article 28(2) of the Payment Se rvices Directive, within one mon th of
receipt of the said information, assess that information and pr ovide the
competent authority with relevant information in connection wit h the
intended provision of payment services and, or issuance and, or
distribution and, or redemption of electronic money by the rele vant
Maltese financial institution i n the exercise of a European rig ht. 
(5) Where the competent author ity does not agree with the
assessment of the European regul atory authority, it shall provi de the
latter with the reasons for its decision. 
(6) If the assessment of the com petent authority, particularly i n
light of the information receive d from the European regulatory
authority of the host Member State is not favourable, the compe tent
authority shall refuse to publis h the informati on in the regist er referred
to in Article 8D of the Act or s hall withdraw the registration if already
made.
 (7) Within three months of receipt of all of the information
referred to in sub-regulation (2 ), the competent authority shal l
communicate its decision to the E uropean regulatory authority a nd to
the Maltese financial institution.
 (8) Upon communication to the E uropean regulatory authority
of its decision in terms of sub- regulation (7), the competent authority
shall publish the information re ferred to in sub-regulation (2) (i) to (iv)
in the public register established and maintained by the compet ent
authority in accordance with article 8D of the Act. 
(9) The Maltese financial institution shall notify the competent
authority, without undue delay, of the date from which it comme nces
its activities in the relevant host Member State.
(10) The competent authority shall inform the European
regulatory authority of the host Member State of the notificati on
received from the Maltese financial institution pursuant to sub -
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regulation (9) by means of the t emplate set out in Annex V to t he
Commission Delegation Regulation. 
(11) The Maltese financial inst itution shall communicate to the
competent authority, without undue delay, any relevant change
regarding the information comm unicated in accordance with sub-
regulation (2) including entities to which activities are outso urced in
the host Member States in which it operates and, in such cases,  t h e
provisions of sub-regulations (3) to (10) shall apply.
Application for 
the exercise of a European right 
by Maltese 
financial institutions - 
branch.10. (1) A Maltese financial institution may exercise a
European right to establish a branch in another Member State if  i t
satisfies the requirements set out in this regulation.
(2) The Maltese financial insti tution shall give the competent
authority a notice of its intentio n  t o  e s t a b l i s h  a  b r a n c h  i n  a n other
Member State, which notice shall be provided in English or in another
language accepted by both the com petent authority and the Europ ean
regulatory authority and shall cont ain the following informatio n:
(i) the name and address of the Maltese financial
institution;
(ii) the licence number or registration number of the
Maltese financial institution, as applicable; 
(iii) the Member State in which the Maltese financial
institution intends to establish a branch; 
(iv) the payment services which the Maltese financial
institution intends to provide in such other Member State and
whether it intends to issue and, or distribute and, or redeem
electronic money in such  other Member State;
(v) the address of the proposed branch in the host
Member State;
(vi) the identity of those responsible for the management
of the proposed branch; 
(vii) a description of the organisational structure of the
proposed branch;
(viii)  a business plan i ncluding a forecast budget
calculation for the first three financial years which demonstra tes
that the Maltese financial institution is able to employ the
appropriate and proportionate sys tems, resources and procedures
to operate soundly with regard to the proposed provision of
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payment services and, or the issuance and, or distribution and,  or
redemption of the electronic money through the proposed branch
in the host Member State;
(ix) a description of the Mal tese financial institution’s
governance arrangements and in ternal control mechanisms,
including administrative, risk management and accountingprocedures, which demonstrates that those governance
arrangements, control mechanisms and procedures are
proportionate, appropriate, sound and adequate with regard to
the proposed provision of payment services and, or the issuance
and, or distribution and, or redemption of the electronic moneythrough the proposed branch in the host Member State; 
(x) where the Maltese financial institution intends to
outsource operational f unctions of payment services and or of
the issuance, and, or distribution and, or redemption of electronic
money to other entities in the hos t Member State , the operational
functions of payment services and, or of the issuance and, or
distribution and, or red emption of electroni c money which it wi ll
be outsourcing to other entities i n that host Member State; and
(xi) any other information as may be required in terms of
Article 6(1) of the Commission Delegated Regulation. 
(3) Within one month of receipt of all of the information
referred to in sub-regulation (2),  the competent authority shal l send to
the European regulatory authority the said information by means  of the
template set out in Annex II to  the Commission Delegated Regula tion
and the competent authority shall inform the Maltese financialinstitution of such transmission of information.
(4) Where the European regulatory authority receives all the
information referred to in sub-regulation (2) from the competen t
authority in accordance with sub-regulation (3), it shall, in terms of
Article 28(2) of the Payment Services Directive, within one mon th
of receipt of the said information, assess that information and
provide the competent authority with relevant information in
connection with the intended provision of payment services and, orissuance and, or distribution and, or redemption of electronic money
by the relevant Maltese financial institution in the exercise o f a
European right. The European regulatory authority shall, in terms ofArticle 28(2) of the Pa yment Services Direct ive, inform the com petent
authority in particular of any reasonable grounds for concern i n
connection with the intended esta blishment of a branch with reg ard to
money laundering or terrorist fin ancing within the meaning of
Directive (EU) 2015/849. 
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(5) Where the competent authority does not agree with the
assessment of the European regul atory authority, it shall provide the
latter with the reasons for its decision. 
(6) If the assessment of the competent authority, particularly i n
light of the information received from the European regulatory
authority of the host Member State is not favourable, the competentauthority shall refuse to regist er the branch or shall withdraw  t h e
registration if already made. 
(7) Within three months of receipt of all of the information
referred to in sub-regulation (2 ), the competent authority shal l
communicate its decision to the  European regulatory authority a nd to
the Maltese financial institution. 
(8) Upon communication to the European regulatory authority
of its decision in terms of sub-regulation (7), the competent a uthority
shall register the branch in the  public register established an d
maintained by the competent authority in accordance with article 8Dof the Act and shall publish in the said register the information referredto in sub-regulation (2)(i) to (v).
(9) Upon entry in the register referred to in article 8D of the
Act, the branch of the Maltese financial institution may commence itsactivities in the host Member State. 
(10) The Maltese financial instit ution shall notify the competen t
authority, without undue delay, of  the date from which it comme nces
its activities through the branch in the relevant host Member S tate.
(11) The competent authority shall inform the European
regulatory authority of the host Member State of the date from which
the Maltese financial institution shall commence its activities  through
the branch in the relevant host Member State by means of the te mplate
set out in Annex VI to the Commission Delegated Regulation. 
(12) The Maltese financial inst itution shall communicate to the
competent authority, without undue delay, any relevant changeregarding the information comm unicated in accordance with sub-
regulation (2) including additi onal branches or entities to whi ch
activities are outsourced in the host Member States in which it  operates
and, in such cases, the provisions of sub-regulations (3) to (11) shallapply. 
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Application for 
the exercise of 
European right by Maltese 
financial 
institutions agent and 
distributor.11. (1) A Maltese financial institution may exercise a
European right to provide payment services and, or distribute and, or
redeem electronic money in another Member State through an agent
and or to distribute and, or red eem electronic money in another
Member State through a distributor  if it satisfies the requirem ents set
out in this regulation. 
(2) A Maltese financial institution seeking to provide payment
services in another Member Sta te through an agent shall communicate
to the competent authority:
(i) the name and address of the Maltese financial
institution;
(ii) the licence number or r egistration number of the
Maltese financial institution, as applicable; 
(iii) the Member State in which the Maltese financial
institution intends to provide payment services through theagent; 
(iv) the name, the address and, where applicable, the
unique identification code or number of the proposed agent;
(v) the payment services activities which the proposed
agent intends to provide in another Member State on behalf of
the Maltese financial institution;
(vi) a description of the inter nal control mechanisms that
will be used by the proposed agent in order to comply with thei r
obligations at law in relation to money laundering and terroris t
financing under Directive (EU) 2015/849, which shall beupdated without delay in the event of material changes to theparticulars communicated at the initial notification; 
(vii) the identity of the dire ctors and persons responsible
for the management of the proposed agent and, for agents
other than payment service providers, evidence that they are fi t
and proper persons; 
(viii) where the Maltese financial institution intends to
outsource operational functions of payment services and, or of
the issuance and, or distributio n and, or redemption of electro nic
money to other entities in another Member State, the operationa l
functions of payment services and, or of the issuance and, ordistribution and, or red emption of electroni c money which it wi ll
be outsourcing to other entities in that Member State; and
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(ix) any other information which may be required in terms
of Article 10(1) of the Commi ssion Delegated Regulation.
(3) A Maltese financial instituti on seeking to distribute and, o r
redeem electronic money in a nother Member State through a
distributor shall communicate to the competent authority:
(i) the name and address, of the Maltese financial
institution;
(ii) the licence number or registration number of the
Maltese financial institution, as applicable; 
(iii) the Member State in which the Maltese financial
institution intends to distribut e and, or redeem electronic mon ey
through a distributor;
(iv) the name, the address and, where applicable, the
unique identification code or num ber of the proposed distributo r; 
(v) whether the distributor i ntends to distribute and, or
redeem electronic money by the M altese financi al institution;
(vi) a description of the internal control mechanisms that
will be used by the proposed distr ibutor in order to comply wit h
their obligations at law in r elation to money laundering and
terrorist financing under Directive (EU) 2015/849, which shall
be updated without delay in the event of material changes to th e
particulars communicated at the initial notification;
(vii) the identity of the directors and persons responsible
for the management of the proposed distributor and, where
applicable, for distributors ot her than payment service providers,
evidence that they are  fit and proper persons;
(viii) where the Maltese financial institution intends to
outsource operational functi ons of the issuance and, or
distribution and, or redemption of electronic money to other
entities in another Member Sta te, the operational functions of the
issuance and, or distribution a nd, or redemption of electronic
money which it will be outsour cing to other entities in that
Member State; and
(ix) any other information which may be required in terms
of the Commission Del egated Regulation.
(4) Within one month of receipt  of all of the information
referred to in sub-regulation (2 ) or (3), as applicable, the co mpetent
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authority shall send to the European regulatory authority the s aid
information by means of the templates set out in Annexes III an d IV to
the Commission Delegated Regulation.
(5) Where the European regulatory authority receives all the
information referred  to in sub-regulation (2) or (3), as applic able, from
the competent authority in accordance with  sub-regulation (4), it shall,
in terms of Article 28(2) of the Payment Services Directive, wi thin one
month of receipt of the said information, assess that informati on and
provide the competent authority with relevant information in
connection with the intended provision of payment services and, o r
distribution and, or redemption of  electronic money, as applicable, by
the relevant Maltese financial i nstitution in the exercise of a  European
right. The European regulatory authority shall, in terms of Art icle
28(2) of the Payment Services Directive, inform the competentauthority in particular of any reasonable grounds for concern in
connection with the intended enga gement of an agent or distribu tor, as
applicable, with regard to money laundering or terrorist financ ing
within the meaning of Directive (EU) 2015/849. 
(6) Where the competent author ity does not agree with the
assessment of the European regul atory authority, it shall provi de the
latter with the reasons for its decision. 
(7) If the assessment of the com petent authority, particularly i n
light of the information receive d from the European regulatory
authority of the host Member State is not favourable, the compe tent
authority shall refuse to register the agent or the distributor , as
applicable, or shall withdraw the registration if already made.  
(8) Within three months of receipt of all of the information
referred to in sub-regulation (2) or (3), the competent authori ty shall
communicate its decision to the E uropean regulatory authority a nd to
the Maltese financial institution. 
(9) Upon communication to the Eur opean regulatory authority
of its decision in terms of sub- regulation (8), the competent authority
shall register the agent in the public register established and
maintained by the competent authority in accordance with articl e 8D
of the Act and shall publish in the said register the informati on referred
to in sub-regulation (2)(i) to (v).
(10) Upon entry in the register re ferred to in article 8D of the
Act, the Maltese financial insti tution may commence its activit ies in
the host Member State through the agent. 
(11) The Maltese financial instit ution shall notify the competen t
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authority, without undue delay, th e date from which it commence s its
activities through the agent and, or distributor, as applicable , in the
relevant host Member State.
(12) The competent authority shall inform the European
regulatory authority of the host Member State of the date from which
the Maltese financial institution shall commence its activities  through
the agent and, or distributor, as applicable, in the host Membe r State by
means of the template set out in Annex VI to the Commission
Delegated Regulation.
 (13) The Maltese financial institution shall communicate to the
competent authority, without undue delay, any relevant changeregarding the information comm unicated in accordance with sub-
regulation (2) or (3) including additional agents and, or distributors, asapplicable, or additional entitie s to which activities are outs ourced in
the host Member States in which it operates and, in such cases,  t h e
provisions of sub-regulations (4) to (12) shall apply. 
Supervision of 
Maltese 
financial 
institutions exercising a 
European Right.12. The competent authority shall provide the European
regulatory authority of the host Member State with all essentia l and, or
relevant information, in particular in the case of infringement s or
suspected infringements by an age nt or a branch of a Maltese fi nancial
institution, and where such infringements occurred in the conte xt of
the freedom to provide services. In that regard, the competent
authority shall communicate to the European regulatory authority,upon request, all relevant information and, on their own initiative, all
essential information, including on the compliance with the con ditions
under Article 11(3) of the Pay ment Services Directive: 
Provided that in order to carry  out the controls and take the
necessary steps provided for in a rticles 11A and 11B of the Act , in
respect of the agent or branch of  a Maltese financial instituti on located
in the territory of another Member State, the competent authori ty shall
also cooperate closely with the Central Bank and the European
regulatory authority of the host Member State. 
On-site 
inspections by 
the competent authority.13. (1) Where Malta is the home Member State, the
competent authority shall, with the assistance of the Central B ank
where necessary, cooperate with the European regulatory authori ty of
the host Member State in order to carry out the controls and ta ke the
necessary steps to ensure continued compliance in respect of an  agent
or branch located in another Member State in respect of a Malte se
financial institution. 
(2) By way of cooperation in accordance with sub-regulation
(1), the competent authority shal l notify the European regulato ry
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authority of the host Member State whenever it intends to carry  out an
on-site inspection in the territory of the latter.
(3) Notwithstanding the provisions of sub-regulation (2), the
competent authority may delegate to the European regulatory aut hority
of the host Member State the tas k of carrying out on-site inspections of
the Maltese financial institution concerned.
Measures in 
case of non-
compliance, including 
precautionary 
measures.14. (1) Where the competent authority, in accordance with
Article 30(1) of the Payment Se rvices Directive, receives infor mation
from any European regulatory aut hority of a host Member State, that a
Maltese financial institution having agents or branches or dist ributors
in the host Member State concerned, does not comply with Title II of
the Payment Services Directive or  with national law transposing  Titles
III or IV of the Payment Services Directive in the host Member State
concerned, the competent authority shall, after having evaluate d the
information received from the European regulatory authority of the
host Member State, without undue delay, take all appropriate me asures
to ensure that the Maltese financial institution puts an end to  i t s
irregular situation: 
Provided that where the information received from a
European regulatory authority of a host Member State relates to  a
failure to comply with Articles 95 or 96 of the Payment Service s
Directive, the appropriate measu re referred to in this sub-article shall
be taken in close cooperation with the Central Bank. 
(2) The competent authority, or with respect to Articles 95 or
96 of the Payment Services Direct ive the competent authority in  close
cooperation with the Central Ba nk, shall communicate without de lay
to the European regulatory authority of the host Member State, and to
any other European regulatory authority of any other Member Sta te
concerned, any measures taken in accordance with sub-article (1 ).
PART III - REVOCATION
Revocation of the European 
Passport Rights 
for Financial Institutions 
Regulations, 
2011.S.L. 376.05.15. (1) The European Passport Rights for Financial
Institutions Regulations, 2011, h ereinafter referred to as "the  revoked
regulations", are hereby revoked, and any references in any law  to the
revoked regulations shall be cons trued as references to these
Regulations.
(2) Nothing in these regulati ons shall be deemed to affect
anything done, or omitted to be done, under the revoked regulat ions
prior to the coming into force of these regulations.
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