The Central Bank of Malta will be issuing a directive which establishes the procedure for the approval of payment systems by the bank.

This proposed directive empowers the bank to issue, amend or revoke directives with respect to, inter alia, the regulation of payment systems.

The proposed directive establishes the procedural mechanism to be followed to obtain an authorisation from the bank for the establishment and operation of a payment system in Malta. It clearly stipulates that no person is authorised to set up and operate a payment system unless the structure of the payment system and its rules have been approved by the bank.

The application form will be available on the bank’s website.

The bank will take into consideration:

(a) the adequacy of financial resources for the proper operation of the payment system;

(b) the appropriateness of default arrangements;

(c) the efficiency of the system of operation;

(d) the effectiveness of arrangements to monitor and enforce the compliance of its rules.

Comments may be sent to info@centralbankmalta.org, indicating in the subject field the words ‘Public Consultation’. The closing date for submissions is May 31.