Frequently asked questions: Central Bank of Malta Directive 19 on use of cheques and bank drafts
We’re making some changes to our General Terms and Conditions on the use of cheques and bank drafts. Please read these Q&As for further guidance. If you need any further information, please get in touch.
What does Directive 19 of the Central Bank of Malta cover?
Directive 19 covers the use of cheques and bank drafts - referred to as 'paper based instruments' in Malta.
It provides rules and regulations to ensure safe and effective use of these paper based instruments by reducing legal and operational risks associated with their use.
When will this come into effect?
Directive 19 will begin on 1 January 2022.
How will this affect me?
The main changes that will come into effect on 1 January 2022 are that:
cheques will only be encashed or credited to the person named by the payer
cheques cannot be future dated, and will be accepted if presented before that future date
cheques over €5,000 and payable to personal customers (natural persons) can only be deposited into the beneficiary's own account
cheques payable to non-personal customers (legal persons) can only be deposited into the beneficiary's own account
cheques cannot be issued for amounts of €20 and under. Any cheques issued before 1 January 2022 for amounts up to and including €20 will be accepted up to 30 June 2022
cheque facilities will be withdrawn for a minimum period of two (2) years if 6 cheques could not be paid out at any time during a 12 month calendar period
The Directive has been issued with the full collaboration of the Malta Bankers' Association, which believes this will decrease the possibility of money laundering. The MBA also believes that common regulatory provisions will increase confidence in the use of cheques and bank drafts for customers and banks.