Malta as an offshore financial centre : the legal framework

Abstract

The study of offshore finance has assumed great relevance and importance locally in view of Malta's intent to establish itself into a primary offshore financial centre. The subject, both because of its currency and potential hence provided a very apt topic for research. In truth my choice of title presented a number of initial difficulties. The term "offshore" is a loosely invoked term which connotes different meanings to different readers. It may be taken to comprise a range of subjects which are all distally though not necessarily immediately related. I have thus sought to define and confine. Though locally, sights have been trained on five offshore areas, namely offshore banking, captive insurance, ship registration, company registration and trusts, I have not chosen to deal with any area in particular. Rather, I have opted for the legal framework which will constitute the backbone of our offshore activities. The thesis has been structured on what I believe are three pillars of the legal framework of an offshore financial centre; the fiscal framework, the regulatory framework and the framework of privacy. I have also included an initial chapter on preliminary concepts and a final chapter on the future of offshore financial centres. It must be said that my timing was my worst enemy. I have written at a time when the legislation in question was still in the process of formulation. The confidentiality which surrounded the legislative exercise had me fear that I might have been working on parallel lines and my work would be outdated even before its completion. The legislation is presently due for Cabinet consideration and its details are still not generally known. I have written at a time too late to restrict myself to general considerations, too early to make any detailed observations. I have thus attempted to elaborate on the rudiments of a structure we already have, and highlight the requirements which are evidently lacking.