Setting up a foreign bank in Malta : the issues

Abstract

The aim of this dissertation was two fold. First to highlight the advantages of a foreign credit institution to set up a physical presence in Malta and secondly to outline the procedures which are necessary to be followed to set up the presence in Malta. For this reason I have divided the entire dissertation in five chapters. I have started by giving a general overview of the financial services industry in Malta. Then I have made a study of some of the double taxation treaties concluded by Malta and their interpretation. In come cases I have referred to similar treaties in countries like Cyprus and Luxembourg which in my opinion are the chief competitors of Malta when it comes to the financial services sector. I have tried to outline the differences or any advantages or disadvantages which may occur. I have then outlined the procedures that are required to set up a foreign bank in Malta, going into the details of application, licensing and operational procedures which the promoters are likely to go through during this stage. In the next chapter I have concentrated on the Banking Directives issued in terms of the Banking Act and some ancillary legislation relevant to the financial services system. I have concluded my dissertation by giving some anecdotes of my personal experience with reference to areas which are of particular importance to a person who is responsible for the accounting, taxation and statutory requirements of a foreign bank. I hope that my dissertation may be used by promoters or foreign institutions as an aid to come to Malta to enrich our financial services industry. My dissertation reflects also the consolidation of the knowledge acquired during the two years course in relevant subjects.