2015, as amended by Legal Notices 491
2021, 254
2024 and 46
2025. 1.
these regulations is the Administrative Penalties, Measures and Investigatory Powers Regulations. Citation and scope.
these regulations is to implement Articles 64
the CRD. 2.
the European Parliament and
the Council
26 June 2013 on access to the activity
credit institutions and the prudential supervision
credit institutions a m e n d i n g D i r e c t i v e 2 0 0 2 / 8 7 / E C a n d r e p e a l i n g Directives 2006/48/EC and 2006/49/EC, as amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "the CRR" means Regulation (EU) No 575/2013
the European Parliament and
the Council
26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012, as amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or maybe issued thereunder; "DORA Regulation" means Regulation (EU) 2022/2554
the European Parliament and
the Council
14 December 2022 on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/ 2014, (EU) No 909/2014 and (EU) 2016/1011, as may be amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "mixed activity holding company" shall have the same meaning as that assigned to it in point
the CRR; "subsidiary" shall have the same meaning as that assigned to it in point
the CRR.
the Act, for the purposes
applying the requirements and supervisory powers laid down in these regulations on a consolidated or sub-consolidated Interpretation. Amended by: L.N. 491
2021; L.N. 254
article 2(1A)
the Act: Provided further that, for the purposes
applying the requirements and supervisory powers laid down in regulations 4
article 2(1B)
the Act. Supervisory powers and powers to impose penalties. Amended by: L.N. 491
2021. Administrative penalties and other administrative measures. Amended by: L.N. 491
2021. Part I - Powers
the competent authority 3. The competent authority shall exercise its supervisory powers and its powers to impose penalties in such a way as to ensure full and complete adherence to the requirements and obligations arising out
the Act and any regulations made and Banking Rules issued thereunder, out
binding legal instruments issued under the CRD and out
the CRR, either directly or in collaboration with overseas regulatory authorities, in terms
law and as warranted by the relevant circumstances, and shall take all measures necessary to ensure that such administrative penalties are implemented. 4.
the Act, to any regulations made under article 3
the Act and to the supervisory powers
the competent authority referred to in regulation 3, the competent authority shall impose administrative penalties and other administrative measures in respect
breaches
: (a) the provisions
the Act and, or
any regulations made and, or Banking Rules issued thereunder, and, or any binding legal instruments issued under the CRD, and, or (b) the provisions
the CRR.
a breach
any such obligation or
a failure to comply with a directive issued by the competent authority under the Act, or any regulations made or Banking Rules ADMINISTRATIVE PENALTIES, MEASURES AND INVESTIGATORY POWERS [ S.L.371.05 3 issued thereunder and under the CRR, Banking Rules issued thereunder, under any binding legal instruments issued under the CRD, and under the CRR, the competent authority may, subject to the conditions laid down in Maltese law, by notice in writing and without recourse to a court hearing, impose administrative penalties on directors, and on other natural persons who under Maltese law are responsible for the breach or for the failure to comply with any such directive.
such breaches, on financial holding companies, mixed financial holding companies, and mixed activity ho ld i ng c om p a ni e s , o r t he i r e ff e c ti ve m a n a g e r s , w h ic h a r e responsible for the breach
the provisions
the Act and any regulations made and Banking Rules issued thereunder transposing the requirements
the CRD. 5.
its functions. Without prejudice to other relevant provisions laid down in the Act, in any regulations made and Banking Rules issued thereunder, in the CRD, in any binding legal instruments issued under the CRD and in the CRR, the powers shall include: (a) the power to require the following natural or legal persons to provide all information that is necessary in order to carry out the tasks
the competent authority, including information to be provided at recurring intervals and in specified formats for supervisory and related statistical purposes: (
the DORA Regulation; (b) the power to conduct all necessary investigations
any person referred to in paragraph (a)(
the competent authority, including the right to: (i) require the submission
documents; (ii) examine the books and records
the persons Investigatory and information gathering powers
the competent authority. Amended by: L.N. 491
2021; L.N. 254
2024. 4 [ S.L.371.05 ADMINISTRATIVE PENALTIES, MEASURES AND INVESTIGATORY POWERS referred to in paragraph (a)(
collecting information relating to the subject matter
an investigation; (c) the power, subject to other conditions set out in European Union law, to conduct all necessary inspections at the business premises
the legal persons referred to in paragraph (a)(
the overseas regulatory authorities concerned. Administrative penalties and other administrative measures for breaches
authorisation requirements and requirements for acquisitions
qualifying holdings. Amended by: L.N. 491
the following breaches: (a) carrying out the business
taking deposits or other repayable funds from the public without being a credit institution, in breach
article 5
the Act; (aa) carrying out at least one
the activities referred to in point
the CRR and meeting the threshold indicated in that Article without obtaining a licence as a credit institution, in breach
article 6A
the Act; (b) commencing activities as a credit institution without obtaining a licence, in breach
article 5
the Act; (c) acquiring, directly or indirectly, a qualifying holding in a credit institution licensed in terms
the Act or further increasing, directly or indirectly, such a qualifying holding, as a result
which the proportion
the voting rights or
the capital held would reach or exceed the thresholds referred to in article 13
the Act or so that such credit institution would become its subsidiary, without notifying in writing the competent authority, during the assessment period, or notwithstanding the refusal
the competent authority, in breach
article 13
the Act; (d) disposing, directly or indirectly,
a qualifying holding in a credit institution licensed in terms
the Act or reducing a qualifying holding so that the proportion
the voting rights or
the capital held would fall below the thresholds referred to in article 13
the Act or so that such credit institution would cease to be a subsidiary, without notifying in writing the competent authority; (e) failing to apply for approval in breach
article 11B
ADMINISTRATIVE PENALTIES, MEASURES AND INVESTIGATORY POWERS [ S.L.371.05 5 the Act or any other breach
the requirements set out in that article, the administrative penalties and other administrative measures which the competent authority may apply on such a person shall include at least the following: (i) a public statement which identifies the natural person, credit institution, financial holding company or mixed financial holding company responsible and the nature
the breach; (ii) an order requiring the natural or legal person responsible to cease the conduct and to desist from a repetition
that conduct; (iii) in the case
a legal person, administrative pecuniary penalties
up to 10%
the total annual net turnover including the gross income consisting
interest receivable and similar income, income from shares and other variable or fixed-yield securities, and commissions or fees receivable in accordance with Article 316
the CRR
the undertaking in the preceding business year: Provided that where the legal person is a subsidiary
a parent undertaking, the relevant gross income shall be the gross income resulting from the consolidated account
the ultimate parent undertaking in the preceding business year; (iv) in the case
a natural person, administrative pecuniary penalties
up to five million euro (€5,000,000); (v) administrative pecuniary penalties
up to twice the amount
the benefit derived from the breach where that benefit can be determined; (vi) suspension
the voting rights
the shareholder or shareholders held responsible for the breaches referred to in this regulation; 7.
the following circumstances: (
any acquisitions or disposals
holdings in their capital that cause holdings to exceed or fall below one
the thresholds referred to in article 13
the Act, fails to inform the competent authority
those acquisitions or disposals in breach
article 13
the Act; (c) a credit institution listed on a regulated market as referred to in the list to be published by the European Securities and Markets Authority established by Regulation (EU) No 1095/2010 in accordance with Other provisions. Amended by: L.N. 491
2021. 6 ADMINISTRATIVE PENALTIES, MEASURES AND INVESTIGATORY POWERS [ S.L.371.05 Article 47
Directive 2004/39/EC
the European Parliament and
the Council
21 April 2004 on markets in financial instruments, does not, at least annually, inform the competent authority
the names
shareholders and members possessing qualifying holdings and the sizes
such holdings in breach
article 13
the Act; (d) a credit institution fails to have in place governance arrangements required by the competent authority in accordance with article 17B
the Act; (e) a credit institution fails to report information or provides incomplete or inaccurate information on compliance with the obligation to meet own funds requirements set out in Article 92
the CRR to the competent authorities in breach
the CRR; (f) a credit institution fails to report or provides incomplete or inaccurate information to the competent authority in relation to the data referred to in Article 101
the CRR; (g) a credit institution fails to report information or provides incomplete or inaccurate information about a large exposure to the competent authority in breach
the CRR; (h) a credit institution fails to report information or provides incomplete or inaccurate information on liquidity to the competent authority in breach
the CRR; (i) a credit institution fails to report information or provides incomplete or inaccurate information on the leverage ratio to the competent authority in breach
the CRR; (j) a credit institution repeatedly or persistently fails to hold liquid assets in breach
the CRR; (k) a credit institution incurs an exposure in excess
the limits set out in Article 395
the CRR; (l) a credit institution is exposed to the credit risk
a securitisation position without satisfying the conditions set out in Article 405
the CRR; (m) a credit institution fails to disclose information or provides incomplete or inaccurate information in breach
the CRR; (n) a credit institution makes payments to holders
instruments included in the own funds
the institution in breach
the CRD or in cases where Articles 28, 51 or 63
the CRR prohibit such payments to holders
instruments included in own funds; ADMINISTRATIVE PENALTIES, MEASURES AND INVESTIGATORY POWERS [ S.L.371.05 (o) a credit institution is found liable for a serious breach
the Prevention
Money Laundering Act and, or
any regulations made thereunder; (p) a credit institution allows one or more persons not complying with article 14
the Act to become or remain a director; (q) a parent institution, a parent financial holding company or a parent mixed financial holding company fails to take any action that may be required to ensure compliance with the prudential requirements set out in Part Three, Four, Six or Seven
the CRR or imposed under point (a)
the CRD on a consolidated or sub-consolidated basis.
the breach; (b) an order requiring the natural or legal person responsible to cease the conduct and to desist from a repetition
that conduct; (c) in the case
a credit institution, withdrawal
the licence
the said credit institution in accordance with article 9
the Act; (d) subject to regulation 4
the credit institution or any other natural person, who is held responsible, from exercising functions in credit institutions; (e) in the case
a legal person, administrative pecuniary penalties
up to 10%
the total annual net turnover including the gross income consisting
interest receivable and similar income, income from shares and other variable or fixed-yield securities, and commissions or fees receivable in accordance with Article 316
the CRR
the undertaking in the preceding business year: Provided that where the legal person is a subsidiary
a parent undertaking, the relevant gross income shall be the gross income resulting from the consolidated account
the ultimate parent undertaking in the preceding business year; (f) in the case
a natural person, administrative pecuniary penalties
up to five million euro (€5,000,000); (g) administrative pecuniary penalties
up to twice the amount
the profits gained or losses avoided because
the breach where those can be determined. Cap. 373. 7 8 ADMINISTRATIVE PENALTIES, MEASURES AND INVESTIGATORY POWERS [ S.L.371.05 Exchange
information on penalties and maintenance
a central database. Amended by: L.N. 491
2021; L.N. 46
2025. 8.
the Act, the competent authority shall inform the EBA
all administrative penalties, including all permanent prohibitions, imposed under these regulations, and including any appeal in relation thereto and the outcome thereof for the purpose
publication on the EBA central database
administrative penalties, which the competent authority shall consult, where appropriate, in the carrying out
its functions and duties.
articles 7
the Act, it shall consult the EBA database
administrative penalties: Provided that the competent authority shall check, in accordance with Maltese law, the existence
a relevant conviction in the criminal record
the person concerned. For those purposes, information shall be exchanged in accordance with European Council Decision 2009/316/JHA and European Council Framework Decision 2009/315/JHA. Effective application
penalties and exercise
powers to impose penalties by the competent authority. 9. When determining the type
administrative penalties or other administrative measures and the level
administrative pecuniary penalties, the competent authority shall take into account all relevant circumstances, including, where appropriate: (a) the gravity and the duration
the breach; (b) the degree
responsibility
the natural or legal person responsible for the breach; (c) the financial strength
the natural or legal person responsible for the breach, as indicated, for example, by the total turnover
the responsible legal person or the annual income
the responsible natural person; (d) the amount
profits gained or losses avoided by the natural or legal person responsible for the breach, insofar as they can be determined; (
cooperation
the natural or legal person responsible for the breach with the competent authority; (
the breach. Reporting
breaches. Amended by: L.N. 491
2021. 10.
potential or actual breaches
the provisions
the Act, regulations made and Banking Rules issued thereunder,
any binding legal instrument issued thereunder and
the provisions
the CRR.
reports on breaches and their follow-up; (b) appropriate protection for employees
credit institutions who report breaches committed within the credit institution against retaliation, discrimination or other types
unfair treatment at a minimum; (c) protection
personal data concerning both the person who reports the breaches and the natural person who is allegedly responsible for a breach, in accordance with the Data Protection Act and any regulations made thereunder; Cap. 586. (d) clear rules that ensure that confidentiality is guaranteed in all cases in relation to the person who reports the breaches committed within the credit institution, unless disclosure is required by Maltese law in the context
further investigations or subsequent judicial proceedings.
Appeal 11. Any person subject to a decision taken by the competent authority in terms
these regulations may appeal to the Financial Services Tribunal established under the Malta Financial Services Authority Act, against any decision and, or measure taken by the competent authority under these regulations and, or under the CRR, imposing upon such person an administrative penalty and, or administrative measure. Right
appeal. Cap. 330. 9
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.