Frequently asked questions: Central Bank of Malta Directive 19 on use of cheques and bank drafts

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.

Directive 19 entered into force on 1 January 2022.

The main changes that entered into effect on 1 January 2022 are that:

• Cheques can only be encashed or credited to the person named by the payer
• Cheques cannot be future dated, but are 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 of any amount 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 are, as from 1 July 2022, no longer accepted
• Cheque facilities will be withdrawn for a minimum period of two (2) years if six (6) cheques are returned unpaid at any time during a twelve-month (12-month) calendar period

These changes are included in our terms and conditions.

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.

Please refer to Directive 19 (PDF).