Chapter 591 – Malta Digital Innovation Authority Act
What is this act about?
Din il-liġi tistabbilixxi l-Awtorità Maltija għall-Innovazzjoni Diġitali biex tappoġġja l-iżvilupp u l-implimentazzjoni ta' prinċipji gwida għat-teknoloġija innovattiva u biex teżerċita funzjonijiet regolatorji. L-għan ewlieni tagħha huwa li tippromwovi t-teknoloġija innovattiva f'Malta u tirregola s-servizzi relatati magħha.
Who it applies to: L-Awtorità Maltija għall-Innovazzjoni Diġitali u l-uffiċjali tagħha; Żviluppaturi ta' teknoloġija innovattiva, b'mod partikolari, iżda mhux esklussivament, start-ups u intrapriżi żgħar u ta' daqs medju.
At a glance
- Country
- Malta
- Area of law
- Tax law
- Articles
- 63
- Source
- legislation.mt
- Text retrieved
- Explanation updated
What does this act regulate?
- L-istabbiliment u l-funzjonijiet tal-Awtorità Maltija għall-Innovazzjoni Diġitali.
- Il-prinċipji gwida għall-iżvilupp u l-użu tat-teknoloġija innovattiva.
- Il-funzjonijiet regolatorji dwar it-teknoloġija innovattiva u s-servizzi relatati.
- Il-promozzjoni ta' fiduċja, trasparenza, affidabbiltà, robustezza, sigurtà u awditabilità fit-teknoloġija innovattiva.
Who does this act apply to?
- L-Awtorità Maltija għall-Innovazzjoni Diġitali u l-uffiċjali tagħha.
- Żviluppaturi ta' teknoloġija innovattiva, b'mod partikolari, iżda mhux esklussivament, start-ups u intrapriżi żgħar u ta' daqs medju.
- Utenti ta' teknoloġija innovattiva u l-pubbliku inġenerali.
What are the key points?
- L-Awtorità hija magħmula minn Bord b'Chairperson u mhux inqas minn erba' (4) u mhux aktar minn tmienja (8) membri oħra.
- Il-membri tal-Bord jinħatru għal terminu ta' sena jew sa massimu ta' tliet snin, u jistgħu jerġgħu jinħatru.
- L-Awtorità għandha l-għan li tipproteġi l-interessi tal-utenti u l-pubbliku, inklużi utenti fi kwalunkwe pajjiż u mhux esklussivament f'Malta.
- Il-liġi tippromwovi l-iżvilupp tat-teknoloġija innovattiva f'diversi setturi ekonomiċi u soċjali, bħal servizzi finanzjarji, saħħa, edukazzjoni, u amministrazzjoni pubblika.
Tax law
Legal text
Legal text
Contents (63)
- Art. 1
- Art. 2
- Art. 3
- Art. 4
- Art. 5
- Art. 6
- Art. 6A
- Art. 7
- Art. 8
- Art. 9
- Art. 10
- Art. 11
- Art. 12
- Art. 13
- Art. 13A
- Art. 14
- Art. 15
- Art. 16
- Art. 17
- Art. 18
- Art. 19
- Art. 20
- Art. 21
- Art. 22
- Art. 23
- Art. 24
- Art. 25
- Art. 26
- Art. 27
- Art. 28
- Art. 29
- Art. 30
- Art. 31
- Art. 32
- Art. 33
- Art. 34
- Art. 35
- Art. 36
- Art. 37
- Art. 38
- Art. 39
- Art. 40
- Art. 41
- Art. 42
- Art. 43
- Art. 44
- Art. 45
- Art. 46
- Art. 47
- Art. 48
- Art. 49
- Art. 49A
- Art. 50
- Art. 50A
- Art. 51
- Art. 52
- Art. 53
- Art. 54
- Art. 55
- Art. 56
- Art. 57
- Art. 58
- Art. 59
MALTA DIGITAL INNOVATION AUTHORITY
CHAPTER 591
MALTA DIGITAL INNOVATION AUTHORITY ACT AN ACT to provide for the establishment of an Authority to be known as the Malta Digital Innovation Authority, to support the development and implementation of the guiding principles described in this Act and to promote consistent principles for the development of visions, skills and other qualities relating to innovative technology, and to exercise regulatory functions regarding innovative technology and related services and to provide for matters ancillary thereto or connected therewith.
Substituted by: XIX.2024.4.
15th July, 2018 ACT XXXI of 2018., as amended by Act XIX of 2024.
ARRANGEMENT OF THE ACT
Part I
Part II
Part III
Part IV
Part V
Part VI
Part VII
Part VIII
Part IX
Part X
Part XI
First Schedule Second Schedule Articles Preliminary 1–2 Guiding Principles 3–4 Establishment, Functions and 5 – 10 Conduct of Affairs of the Authority Officers and Employees of 11 – 12 the Authority Financial Provisions 13 – 25 Principles relating to 26 - 33 Recognition Deleted by Act No. XIX of 34 - 38 Enforcement and Sanctions 39 - 44 Administrative Review 45 - 54 Tribunal Deleted by Act No. XIX of 55 - 57 Miscellaneous Provisions 58 – 59 Innovative Technology Deleted by Act No. XIX of Substituted by: XIX.2024.5.
PART I
Preliminary
Art. 1
The short title of this Act is the Malta Digital Innovation Authority Act.
Art. 2
Short title.
Interpretation. Substituted by: XIX.2024.6.
MALTA DIGITAL INNOVATION AUTHORITY "Authority" means the Malta Digital Innovation Authority established by article 5 and any references in the Act or any other law to the Authority shall, unless the context otherwise requires, be construed as including a reference to any person authorised by the Authority to act for or on its behalf; "Board" means the Board of Governors of the Authority composed of the Chairperson and members appointed in accordance with article 5; "Chairperson" means the Chairperson of the Authority and includes, in the circumstances mentioned in article 5(3), the Deputy Chairperson or any other person appointed to act as Chairperson; "decision" includes any directive, determination, direction, condition, measure, requirement or specification, howsoever described, made by the Authority; "innovative technology" includes any form of digital technology, including but not limited to, any type of digital technology listed in the First Schedule, related products, solutions or services, as well as processes and practices aimed or designed at protecting digital technology and its users; "Minister" means the Minister responsible for the Authority; "powers of the Authority" means the powers of the Authority resulting from the Act, any laws that the Authority is appointed or entitled to administer or enforce, any Governmental or ministerial appointment, or by delegation, appointment or engagement by other public entities, regulatory bodies and, or competent authorities;"; "recognition" means any form of recognition including a licence, registration, permission, authorisation, approval, acknowledgment, certification, attestation, or mark of credit, granted or issued by the Authority in accordance with the powers of the Authority; "small and medium-sized enterprises" shall have the meaning assigned to it under the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (notified under document number C(2003) 1422) or any law enacted in relation thereto; "Tribunal" means the Administrative Review Tribunal established by article 5 of the Administrative Justice Act; "user" includes any person who uses or otherwise participates in or engages with innovative technology.
MALTA DIGITAL INNOVATION AUTHORITY
PART II
Guiding Principles
Art. 3
The Government shall, through the establishment of the Authority in Malta, seek the progress of the innovative technology sect or in M alta an d th e fo steri ng of i nno vat ive t echno log y development in or from Malta through the recognition and regulation of relevant innovative technology and related services, the issuing and promotion of initiatives and incentives aimed at the innovative technology sector and the adoption of standards that add trust in innovative technology. This shall be done: (a) in full respect of the importance of not hindering innovation and the efforts and potential of small and mediumsized enterprises and the start-up sector in this area of activity; (b) while considering that the approach to recognition and regulation may be moderated by the pace of changes and developments taking place in this sector; (c) in a manner ensuring that there are standards in place for the protection of users, the integrity of the market, and the public interest in general; (d) in a manner that incentivises innovation and innovative technology development in or from Malta; (e) in a manner that is consistent with European and international laws applicable to Malta; and (f) in line with the values outlined in the strategy of the Authority or similar document, as may be updated from Promotion and development of the Authority’s interests. Substituted by: XIX.2024.7.
MALTA DIGITAL INNOVATION AUTHORITY time to time.
Main policies and objectives. Amended by: XIX.2024.8.
Art. 4
Provided that the giving of such grants shall not prejudice and, or preclude the Authority’s oversight and regulatory functions and powers; (e) to promote, and strive to safeguard, maintain and protect the reputation of Malta in relation to innovative technology and the development and use of innovative technology; (f) to protect the interest of users of innovative MALTA DIGITAL INNOVATION AUTHORITY technology and the public in general and in so doing take any necessary action, including without limitation to disclosure of information and documents which the Authority in its discretion deems that merits disclosure and, or when required by law, to be disclosed to the general public and, or referred to any other competent authority and the pursuance of any further act or collaboration from or with other public entities, regulatory bodies and, or competent authorities and, or regulatory bodies; (g) to provide a sound financial basis to the Authority, through, amongst others, the levying of fees by the Authority, including the imposition of interest in the case of late payment at the rate to be determined by the Authority, for the Authority to be able to achieve its purposes; (h) to promote harmonised practices and, where applicable, to facilitate the adoption of standards in innovative technology in Malta in conformity with international norms, standards, rules and, or laws and particularly with those of the European Union; (i) to assist the competent data protection authorities as required by law; (j) to promote and encourage ethical and legitimate criteria in the design and use of innovative technology, and to enforce, as deemed necessary, the quality of services and security of the innovative technology for which a recognition has been granted by the Authority; (k) through collaboration with other regulatory bodies and competent authorities with responsibility for the prevention of money laundering and the financing of terrorism and crime in general, to support the prevention of money laundering, terrorist financing and the commission of any other crime in, or by means of the use of innovative technology; (l) to promote trust, transparency, reliability, robustness, safety and auditability in the design and use of innovative technology; (m) to promote legal certainty in the application of laws, in a national and cross-border context, and the development of appropriate legal principles for the effective application of law to innovative MALTA DIGITAL INNOVATION AUTHORITY technology; and (n) to promote security by design and security by
default criteria with reference to innovative technology.
PART III
Establishment, Functions and Conduct of Affairs of the Authority Establishment and composition of the Malta Digital Innovation Authority. Amended by: XIX.2024.9.
Art. 5
Provided that should any nominee to such a position declare a conflict of interest or potential conflict of interest based on a specific context only and provides full information, this may be reviewed by the Minister and the Board, and if the conflict of interest is not considered one which would disqualify the nominee, this disqualification shall not apply but it shall be the subject of a written guidance on the part of the Minister, and, or the Board which shall apply to the member for as long as such specific context subsists, and this without prejudice to sub-article (9); or (d) has been convicted of a criminal offence affecting public trust, or of theft or fraud, or of knowingly receiving property obtained by theft or fraud or of bribery or of money laundering, or of a criminal offence under any law, or is being investigated for such criminal offence.
MALTA DIGITAL INNOVATION AUTHORITY
MALTA DIGITAL INNOVATION AUTHORITY
Art. 6
Provided that the Authority shall publish the terms of such programmes, schemes and initiatives in a clear and transparent manner; (b) unless otherwise determined by or under any applicable laws and, or regulations, determine those professional services related to innovative technology that require recognition by the Authority and publish and administer such programmes, schemes and initiatives that, in the view of the Authority, are necessary to foster trust in innovative technology, including services for the auditing and testing of innovative technology, or aspects thereof, and the risks posed by their use or application; (c) publish and administer such programmes, schemes and initiatives, including those ensuring that a controlled regulatory environment for the testing of innovative technology is available, for the fostering of the development of innovative technology in or from Malta; (d) obtain from the Government, other local authorities or agencies and, or apply to the European Union or other international bodies for the grant of funds to be utilised as grants to be allocated to innovative technology by way of incentives and awards and administer such grants and incentives to applicants Purpose, functions and powers of the Authority. Amended by: XIX.2024.10.
MALTA DIGITAL INNOVATION AUTHORITY in accordance with fair, transparent and nondiscriminatory conditions to be published by the Authority and which are accessible through the website of the Authority, from time to time; (e) perform the functions of the National Cybersecurity Certification Authority in accordance with Regulation (EU) 2019/881 of the European Parliament and of the Council of 17 April 2019 on ENISA (the European Union Agency for Cybersecurity) and on information and communications technology cybersecurity certification and repealing Regulation (EU) No.
526/2013 (Cybersecurity Act), and advise the Minister on the adoption and publication of laws necessary to implement European and international laws relating to cyber security certification; (f) be consulted on any planned implementation of laws and policies relating to the national imposition of obligations on innovative technology in any area or sector as well as in relation to the implementation of European Union and, or international legislation relating to innovative technology; (g) subject to any limitations that may be imposed on the powers of the Authority, establish and levy fees in relation to innovative technology, including on any recognition and any persons, such as providers of services relating to innovative technology participating in the initiatives and, or schemes published or administered by the Authority, whether acting alone as well as jointly with other public entities, regulatory bodies and, or competent authorities, subject to the publication of such fees in advance and in a transparent fashion and accessible through the website of the Authority, and the Authority shall also have the power to establish and levy fees for services rendered to other public entities, regulatory bodies and, or competent authorities; (h) regulate, issue recognitions and conditions, including in principle temporary or partial recognitions, as may be further elaborated by the Authority pursuant to its guidelines and test, monitor and supervise innovative technology, in or from Malta, in accordance with the Act and any subsidiary legislation made thereunder;
MALTA DIGITAL INNOVATION AUTHORITY (i) keep under review all practices, operations and activities relating to any matter regulated by or under the Act or any other law which the Authority is entitled to administer or enforce or any European Union and, or international legislation applicable to Malta; (j) promote high standards of conduct and governance throughout the innovative technology industry, corresponding with the levels of risk posed by the use of innovative technology; (k) enforce compliance with obligations and, or terms arising from and, or in terms of the law; (l) own, manage, supervise and control and as required use, hold, develop and provide, maintain a sublicence and, or make available any wallet or similar solution or software, any wallet solution, account or other facility, in particular in relation to any form of digital identity, accreditation, data and digital assets; (m) engage with facilities, entities and persons, including service providers and carry out transactions as it may consider necessary for the fulfilment of its functions, and enter into any contract for the supply of goods or materials or the execution of work or the rendering of services to, or for the benefit and, or functioning of the Authority, including but not limited to, in pursuance to paragraph (l) and, or the innovative technology sector; (n) monitor the effects of laws on the use and operation of innovative technology and undertake or commission such study, research or investigation which it may deem necessary in this regard; (o) issue binding documentation such as guidelines and provide information and guidance on any matter, including definitions regulated by, or under the Act, or any other law which the Authority is entitled to administer or enforce, or any European Union and, or international legislation applicable to Malta; (p) determine, by virtue of guidelines or other binding documentation, which products, solutions or services may be classified as "innovative technology" as defined in the Act and the purposes, qualities, features, attributes, behaviours or aspects MALTA DIGITAL INNOVATION AUTHORITY thereof that shall be recognised by the Authority; (q) support and liaise with non-profit organisations and educational institutions in Malta which are established for the promotion of the use and development of innovative technology; (r) keep under review developments on relevant subjects relating to innovative technology in order to ensure that activity in Malta is generally consistent with internationally recognised standards and norms of good practice;
(s) enter into agreements with other public bodies and authorities to better coordinate the effective and efficient exercise of the respective functions of such public bodies and authorities where they have common functions, interests or aims, including the delegation to the Authority by the said public bodies and authorities of certain powers appertaining to them and the delegation by the Authority to such other public bodies and authorities of certain powers of the Authority; (t) collect relevant statistical and other information as may be required by the Authority in relation to innovative technology; (u) perform such other functions, including functions aimed at promoting innovative technology, as may from time to time be assigned to it by the Minister, or by governmental or ministerial appointment or by engagement by other public entities, regulatory bodies and, or competent authorities; (v) impose administrative penalties and, or measures and, or fines in accordance with the powers of the Authority in relation to a breach of the Act, any regulations made thereunder, any law which the Authority is entitled to administer or enforce, or any recognition issued by the Authority or any European Union and, or international legislation applicable to Malta; (w) advise the Minister on the formulation of policy in relation to matters regulated by, or under the Act, and in particular in relation to any international obligations; (x) otherwise advise the Minister on any matter connected with its functions under the Act or any MALTA DIGITAL INNOVATION AUTHORITY other law; (y) formulate and implement the policies and strategies with short-term and long-term objectives in relation to the matters connected with its functions under the Act or any other law; (z) encourage users of innovative technology to establish places of business in Malta; (aa) advise the Minister on the planning and development of the innovative technology industry as well as on the infrastructure supporting the innovative technology industry; (bb) promote and advance Malta as a destination for high value commercial users of innovative technology to establish places of business in Malta; (cc) prescribe any forms relating to any of the applications and processes involved in the recognition of innovative technology; (dd) establish or participate in the establishment and operation of entities whose function shall be necessary, ancillary or conducive to the attainment of the functions and, or objectives of the Authority under the Act or any regulations made thereunder
or any law which the Authority has the power to administer or enforce or any European Union and, or international legislation applicable to Malta; (ee) perform the functions of a competent authority in accordance with Regulation (EU) 2022/868 of the European Parliament and of the Council of 30 May 2022 on European data governance and amending Regulation (EU) 2018/1724 (Data Governance Act) for data altruism services and data intermediation services; (ff) carry out functions in line with cooperation mechanisms with other national competent authorities; and (gg) appoint a qualified person or otherwise require that the person concerned appoints a qualified person in the case that he considers this to be appropriate or expedient to perform those tasks in terms of those terms and conditions that the Authority may order.
The fees and expenses incurred by the qualified person in this respect or which are incidental to MALTA DIGITAL INNOVATION AUTHORITY such an appointment shall be paid by the person in respect of whom the qualified person was appointed, unless determined otherwise by the Authority. The Authority may issue guidelines that establish the procedures or requisites related with this appointment and these guidelines may also establish the powers, duties and obligations of the qualified person.
Provided that the information requested by the Authority shall be proportionate to the performance of its functions and obligations under the Act or any regulations made thereunder or any law which the Authority has the power to administer or enforce or any European Union and, or international legislation applicable to Malta, and in requiring any information as aforesaid, the Authority shall specify the reason for such request. (b) Where the Authority requires information relating to the intellectual property, trade secrets or commercially sensitive information related to any innovative technology, it shall only demand that information which is strictly necessary for its purposes and shall keep such information confidential. (c) A person who is notified with a request for information shall comply promptly with the request and within the timeframes and according to any level of detail, as may be required by the Authority. (d) Any person who has any information requested by the Authority in terms of the Act and its officers or employees shall, on a written request from the Authority, provide expeditiously to the Authority any information required by the Authority in terms of the Act, may not raise in this regard, an exception or defence including any obligation with regard to the prohibition or the confidentiality that arise from contractual law or in any other manner refuses to conform with such a request from the Authority. No action for a breach of contractual law or disciplinary action may be taken in a direct or MALTA DIGITAL INNOVATION AUTHORITY indirect manner by a person in regard to officers and employees due to the fact that they provided the Authority with any required information by the Authority as provided in sub-article (4) and any such contractual or disciplinary measure shall be deemed as null and void:
Provided that any such person shall, in complying with the provisions of this sub-article, specify clearly to the Authority if any information provided by him is to be considered as confidential for commercial reasons. Also said person shall specify clearly his reasons to the Authority. The Authority shall decide whether the information shall be treated as such:
Provided further that the provisions of this sub-article relating to confidentiality shall apply to any information provided to the Authority for whatever reason whether under the Act or any other law which the Authority is entitled to administer or enforce.
Enforcement powers. Added by: XIX.2024.11.
MALTA DIGITAL INNOVATION AUTHORITY
Art. 6A
Without prejudice to any other law, for the purpose of carrying out market surveillance, investigation and enforcement in accordance with Regulation (EU) 2019/1020 of the European Parliament and of the Council of 20 June 2019 on market surveillance and compliance of products and amending Directive 2004/42/EC and Regulations (EC) No. 765/2008 and (EU) No. 305/2011 and other European Union legislation, the Authority shall have the powers listed in such Regulation and other European Union legislation, with regard to functions where the Authority has been designated as market surveillance authority, including the power to: (a) require economic operators to provide relevant documents, technical specifications, data or information on compliance and technical aspects of the product, including access to embedded software in so far as such access is necessary for the purpose of assessing the product’s compliance with applicable European Union harmonisation legislation, in any form or format and irrespective of the medium of storage or the place where such documents, technical specifications, data or information are stored, and to take or obtain copies thereof; (b) require economic operators to provide relevant information on the supply chain, on the details of the distribution network, on quantities of products on the market and on other product models that have the same technical characteristics as the product in question, where relevant for compliance with the applicable requirements under European Union harmonisation legislation; (c) require economic operators to provide relevant information required for the purpose of ascertaining the ownership of websites, where the information in question is related to the subject matter of the investigation; (d) carry out unannounced on-site inspections and physical verifications; (e) enter any premises, land or means of transport that the economic operator in question used for purposes related to the economic operator’s trade, business, craft or profession, in order to identify non-compliance and to obtain evidence; (f) start investigations on its own initiative in order to identify non-compliance and ensure that the situation is rectified; (g) require economic operators to take appropriate MALTA DIGITAL INNOVATION AUTHORITY action to stop circumstances of non-compliance or to eliminate the risk; (h) take appropriate measures where an economic operator fails to take appropriate corrective action or where the non-compliance or the risk persists, including by prohibiting or restricting the making available of a product on the market or
by ordering that the product is withdrawn or recalled; (i) impose administrative penalties in accordance with Article 41 of Regulation (EU) 2019/1020 of the European Parliament and of the Council of 20 June 2019 on market surveillance and compliance of products and amending Directive 2004/42/EC and Regulations (EC) No. 765/2008 and (EU) No. 305/2011 and according to European Union legislation; (j) acquire product samples, including under a cover identity, to inspect those samples and reverse engineer them in order to identify non-compliance and to obtain evidence; (k) where no other effective means are available to eliminate a serious risk: (i) to require the removal of content referring to the related products from an online interface or require the explicit display of a warning to end users when they access an online interface; or (ii) where a request according to subparagraph (i) has not been complied with, to require information society service providers to restrict access to the online interface, including by requesting a relevant third party to implement such measures; and (l) use any information, document, finding, statement, or any intelligence as evidence for the purpose of its investigations, irrespective of the format in which and medium on which they are stored.
Art. 7
MALTA DIGITAL INNOVATION AUTHORITY Minister.
Provided that nothing in this sub-article shall authorise the Authority to contract or delegate any of: (a) its regulatory functions; or (b) its recognition functions, unless such functions are expressly delegated to another public entity, regulatory body and, or competent authority established by law.
Art. 8
Independence of the Authority and its relations with the Minister. Substituted by: XIX.2024.13.
Art. 9
Legal personality and representation of the Authority. Amended by: XIX.2024.14.
Provided that the Board may appoint one or more members of the Board, or one or more officers of the Authority to appear in the name or on behalf of the Authority in any judicial proceedings and in any act, contract, instrument or other document whatsoever.
MALTA DIGITAL INNOVATION AUTHORITY
Meetings. Amended by: XIX.2024.15.
Art. 10
The meetings of the Board shall be called by the Chairperson as often as may be necessary but at least once a month either on his own initiative or at the request of any two of the other members of the Board.
PART IV
Officers and Employees of the Authority Officers of the Authority.
Art. 11
Officers and employees deemed to be public employees and public officers. Cap. 595.
Art. 12
MALTA DIGITAL INNOVATION AUTHORITY
PART V
Financial Provisions
Art. 13
Without prejudice to the following provisions of this article, the Authority shall so conduct its affairs so that the expenditure required for the proper performance of its functions shall, as far as practicable, be met out of its revenue.
Authority to meet expenditure out of revenue. Amended by: XIX.2024.16.
Provided that any subvention received from Government shall be exempted from any liability for the payment of income tax and duty on documents under any law for the time being in force.
Art. 13A
13A. The Authority shall be exempt from any liability for the payment of income tax, duty on documents and transfers, and customs and excise duty, under any law.
Exemption from taxes. Added by: XIX.2024.17.
Art. 14
For the purpose of carrying out any of its functions under this Act or any other law which the Authority is entitled to administer or enforce, the Authority may, with the approval in writing of the Minister given after consultation with the Minister responsible for finance, borrow or raise money in such manner, from such person, body or authority, and under such terms and conditions as the Minister, after consultation as aforesaid, may in writing approve.
Power to borrow or raise capital.
MALTA DIGITAL INNOVATION AUTHORITY
Provided that for any amount in excess of one hundred and forty-four thousand euro (€144,000), there shall be required the approval of the Minister in writing.
Advances from Government.
Art. 15
Borrowing from Government.
Art. 16
The Minister, after consultation with the Minister responsible for finance, may, for any requirements of the Authority of a capital nature, contract or raise loans, or incur liabilities, for such periods and on such terms and conditions as he may deem appropriate; and any sums due in respect of or in connection with any such loan or liability shall be a charge on the Consolidated Fund.
Estimates of the Authority.
Art. 17
The Authority shall cause to be prepared in every financial year, and shall not later than three months after the end of each such year, adopt estimates of the income and expenditure of the Authority for the next following financial year:
Provided that the estimates for the first financial year of the Authority shall be prepared and adopted within such time as the Minister may by notice in writing to the Authority specify.
MALTA DIGITAL INNOVATION AUTHORITY
Art. 18
No expenditure shall be made or incurred by the Authority unless it has been approved by the Minister as provided in article 17.
Notwithstanding the provisions of sub-article (1) - (a) until the expiration of six months from the beginning of a financial year, or until the approval of the estimates for that year by the Minister, whichever is the earlier date, the Authority may make or incur expenditure for carrying out its functions under this Act or any other law which the Authority is entitled to administer or enforce not exceeding in the aggregate one-half of the amount approved by the Minister for the preceding financial year; (b) expenditure approved in respect of a head or sub- head of the estimates may, with the approval of the Minister, given after consultation with the Minister responsible for finance, be made or incurred in respect of another head or sub- head of the estimates; (c) in respect of the first financial year, the Authority may make or incur expenditure not exceeding in the aggregate such amounts as the Minister responsible for finance may, after consultation with the Minister, allow; (d) if in respect of any financial year it is found that the amount approved by the Minister is not sufficient or a need has arisen for expenditure for a purpose not provided for in the estimates, the Authority may adopt supplementary estimates for approval by the Minister and in any such case the provisions of this Act applicable to the estimates shall as near as practicable apply to the supplementary estimates.
Art. 19
MALTA DIGITAL INNOVATION AUTHORITY Representatives.
Accounts and audit. Amended by: XIX.2024.18.
Art. 20
The Authority shall cause to be kept proper accounts and other records in respect of its operations, and shall cause to be prepared a statement of accounts in respect of each financial year.
Provided that the Minister may, prior to approving the accounts, require the books and accounts of the Authority to be audited or examined by the Auditor General who shall for the purpose have the power to carry out such physical checking and other certifications as he may deem necessary.
Deposit of revenues and payment by the Authority. Amended by: XIX.2024.19.
Art. 21
All monies accruing to the Authority shall be paid into a bank or banks appointed as bankers of the Authority by resolution of the Board. Such monies shall, as far as practicable, be paid into any such banks from day to day, except such sum as the Authority may authorise to be retained to meet petty disbursements and immediate cash payments.
MALTA DIGITAL INNOVATION AUTHORITY (b) the title of any account held with the bank or banks into which the monies of the Authority are to be paid, and the transfer of funds from one account to the other; (c) the method to be adopted in making payments out of funds of the Authority, and generally with respect to any matter which is relevant to the proper keeping and control of the accounts and books, and the control of the finance, of the Authority.
Art. 22
Repealed by Act XIX.2024.20.
Art. 23
Art. 24
Repealed by Act XIX.2024.21.
Contracts of supply or works.
Annual Report.
Money laundering.
Art. 25
Exclusion of liability. Amended by: XIX.2024.22.
PART VI
Substituted by: XIX.2024.23.
Principles relating to Recognition
Art. 26
MALTA DIGITAL INNOVATION AUTHORITY accordance with the powers of the Authority, laying down the terms and requirements that applicants shall satisfy.
Power of the Authority to grant or refuse recognition. Amended by: XIX.2024.25.
Art. 27
Art. 28
Without prejudice to the generality of the powers of the Authority, the Authority may issue guidelines or otherwise specify those instances in which it may refuse to grant a recognition, which instances may include the following: (a) if the application is not submitted in accordance with the established form or in accordance with applicable procedure; or (b) if the applicable fees have not been paid; or (c) if the Authority, in its discretion, is not satisfied that the applicant, any relevant persons, including persons with delegated authority of representation, possess the required qualities and, or competencies and, or qualifications, including those relating to security features and automated technology systems used and those related to fit and proper requirements, imposed by the Authority; or (d) Repealed by Act XIX.2024.26.
Refusal to grant recognition. Amended by: XIX.2024.26.
MALTA DIGITAL INNOVATION AUTHORITY (e) if it transpires that any information or submission made to the Authority is false, misleading, inaccurate or incomplete in a material respect; or (f) if the Authority, in its discretion is not satisfied in accordance with the circumstances of the case that: (i) the applicant is capable of sustainably financing the innovative technology; (ii) the applicant has the necessary competence, technical know-how and resources to develop the innovative technology or provide the service; (iii) the applicant has a business model to develop and, or maintain the innovative technology or provide the service in a viable manner which is compliant with the applicable regulatory instruments in force; and (iv) the applicant shall comply with all requirements and obligations applicable should a recognition be issued by the Authority, including but not limited to financial safeguards; or (g) if the Authority believes that the applicant’s proposal is not compliant with the regulatory instruments in force; (h) if the Authority believes that granting a recognition to the applicant may pose a risk to the reputation of Malta or is otherwise not in the public interest or contrary to regulatory objectives established by the Act; (i) if the Authority believes that the innovative technology may be used in a manner that is contrary to public morality, or third party personal rights or is considered a potential security threat, or may pose a risk to the reputation of Malta, or is considered to be not in the public interest; or (j) if the Authority, in its reasonable discretion, is not satisfied that the applicant has complied with and, or has satisfied the required conformity assessment procedure, where applicable and, or other procedures of the Authority.
MALTA DIGITAL INNOVATION AUTHORITY
Art. 29
Notice of refusal of a recognition. Substituted by: XIX.2024.27.
Art. 30
Power of the Authority to revoke, cancel or suspend a recognition. Substituted by: XIX.2024.28. (a) one of the grounds for which the Authority may have rejected the recognition holder’s application arises; (b) where the recognition is issued based on incorrect or false information provided to the Authority; (c) where at the discretion of the Authority, this is in the interest of the users of the innovative technology concerned, public safety or morality, or the reputation of Malta; (d) where this is necessary as a result of a change in the legal framework which necessitates such a revocation, cancellation or suspension of recognition; or (e) where this is necessary on the basis of European Union and international laws applicable to Malta:
Provided that without prejudice to any other breaches under any other law that this may give rise to, the providing of false information to the Authority shall constitute an offence in accordance with the Act and shall be punishable in accordance with the provisions of the Act.
Procedure when taking a measure in accordance with article 30. Substituted by: XIX.2024.29.
Art. 31
Decisions of the Authority. Substituted by: XIX.2024.30.
Art. 32
Art. 33
Repealed by Act XIX.2024.31.
Transferability.
PART VII
Regulatory Powers
Art. 34
Repealed by Act XIX.2024.32.
Power of competent authority to revoke, cancel or suspend innovative technology arrangement authorisations and innovative technology services authorisations.
Art. 35
Repealed by Act XIX.2024.32.
Procedure when taking a measure under article 34.
Art. 36
Repealed by Act XIX.2024.32.
Notification of proposed refusal, revocation, cancellation or suspension of an innovative technology authorisation.
Art. 37
Repealed by Act XIX.2024.32.
Publication of policy guidelines.
Art. 38
Repealed by Act XIX.2024.32.
Exemptions.
PART VIII
Enforcement and Sanctions
Art. 39
Repealed by Act XIX.2024.33.
Art. 40
For the purposes of the exercise by the Authority of any of its functions under this Act or under any other law which the Authority is entitled to administer or enforce, the Authority may, as may be applicable in the context and subject to the limitations in the applicable laws on professional secrecy: (a) enter, at any reasonable time, any premises or any other place or any vehicle or vessel where any activity regulated by or under this Act or any other law which the Authority is entitled to administer or enforce, takes place, or in the opinion of the Authority takes place, and search and inspect the premises, place, vehicle or vessel and any books, documents or records found therein;
Provision of information.
Enforcement powers of the Authority. Amended by: XIX.2024.34.
MALTA DIGITAL INNOVATION AUTHORITY (b) require any person to produce for inspection and take extracts or copies from any books, documents or records relating to any activities regulated by or under this Act or any other law which the Authority is entitled to administer or enforce, which are under the control of that person and, in the case of information in a non-legible form to reproduce it in a legible form, and to give to the Authority such information as the Authority may reasonably require in relation to any entries in such books, documents or records; (c) remove and retain such books, documents or records for such period as may be reasonable for further examination; (d) require any person to maintain such books, documents or records for such period as may be reasonable as the Authority directs; (e) require any person to give to the Authority any information that may be required with regard to any matter regulated by or under this Act or any other law the Authority is entitled to administer or enforce; (f) make such inspections, including site inspections, to enable the Authority to carry out its functions at law and in doing so the Authority may also undertake tests and measurements of any machinery, apparatus, appliances and other equipment at any place as the Authority may consider necessary:
Provided that where the person concerned fails to abide with any requirements made by the Authority under this sub-article, the Authority may then take any such measures as it may consider appropriate in the circumstances including the switching off or modification of the use of any such apparatus; and (g) investigate any suspected breach of any obligations arising under the Act or any other law which the Authority is entitled to administer or enforce or any European and, or international legislation which is applicable in Malta:
Provided that the Authority may initiate investigations on its own initiative.
Art. 41
Except where otherwise provided by law, a person shall not knowingly disclose confidential information obtained by him while performing the duties of a member of the Board, or of an officer or employee of the Authority or of an adviser Disclosure of confidential information. Amended by: XIX.2024.35.
MALTA DIGITAL INNOVATION AUTHORITY or consultant to the Authority, unless he is duly authorised by the Authority to do so:
Provided that any such person shall remain bound by the requirements of this article even after his appointment or employment, howsoever described, with the Authority has come to an end.
Administrative penalties. Amended by: XIX.2024.36.
Art. 42
An administrative penalty imposed shall not, unless provided otherwise by or under this Act or any law which the Authority is entitled to enforce, exceed three hundred and fifty thousand euro (€350,000) for each infringement or failure to comply and, or twelve thousand euro (€12,000) for each day of infringement or non-compliance as the case may be:
Provided that if the act or omission which constitutes an infringement is considered by the Authority as having significant effects on the market to the detriment of users, the stated amount that may be imposed as an administrative penalty may be increased to an amount that is not more than five per cent (5%) of the turnover of the undertaking in the calendar year immediately preceding the year when the infringement was committed:
Provided further that any daily administrative penalty imposed may be back- dated to the date of the commission or commencement of the infringement.
Repealed by Act XIX.2024.36.
Art. 43
Art. 44
Prescription for offences and infringements. Amended by: XIX.2024.38.
PART IX
Administrative Review Tribunal
Art. 45
The Administrative Review Tribunal shall be competent to hear and determine appeals from decisions of the Authority as provided in this Act or in any law which the Authority is entitled to administer or enforce or in any European Union and, or international legislation applicable to Malta.
Administrative Review Tribunal. Amended by: XIX.2024.39.
Art. 46
Unless otherwise provided by law, an appeal shall lie to the Tribunal from a decision of the Authority made under this Act, any other decisions that the Authority may take under any other law which the Authority is entitled to administer or enforce, and any decision taken by or on behalf of Government or by any public authority in relation to or having a substantial bearing on innovative technology.
Appeals from decisions of the Authority other than the imposition of administrative penalties. Amended by: XIX.2024.40.
Provided that in any case, a person making an appeal to the Tribunal shall also explain his juridical interest in impugning the decision appealed from.
Appeals against an administrative penalty imposed by the Authority. Amended by: XIX.2024.41.
MALTA DIGITAL INNOVATION AUTHORITY
Art. 47
Without prejudice to the provisions of this Part, the procedure to be followed in relation to appeals against administrative penalties imposed by the Authority shall be regulated by the provisions of this article.
Decisions of the Administrative Review Tribunal. Amended by: XIX.2024.42.
Art. 48
Procedure of the Tribunal. Amended by: XIX.2024.43.
Art. 49
The Tribunal shall endeavour to determine an appeal within one hundred and twenty (120) days from the lapse of the period by when the Authority may file its reply to the aforesaid appeal and in any case to deliver its final decision not later than sixty
MALTA DIGITAL INNOVATION AUTHORITY
Art. 49A
49A. Any party, who feels aggrieved by a decision of the Tribunal, may on a point of law and, or of fact appeal to the Court of Appeal in accordance with article 22 of the Administrative Justice Act.
Appeal to the Court of Appeal. Added by: XIX.2024.44.
Art. 50
The decision of the Authority, pending an appeal whether before the Tribunal or the Court of Appeal, shall stand and shall be adhered to by all the parties to whom the decision applies.
Status of decision or directive pending an appeal before the Tribunal or the Court of Appeal. Amended by: XIX.2024.45.
Provided that a party, in making an application under this article, shall state the factual and legal grounds establishing a prima facie case for the suspension of the decision. The Tribunal or the Court of Appeal, as the case may be, shall on receipt of any such application order the notification thereof to the other party or parties to the appeal affording them reasonable opportunity to make their response thereto:
Provided further that the Tribunal, in determining any such application, may include such conditions as it considers necessary in the circumstances.
Art. 50A
50A. In cases where the Tribunal or the Court of Appeal, as the case may be, after having upheld an application to suspend an administrative penalty imposed by the Authority pending proceedings, decides that the administrative penalty is due, such administrative penalty shall be due together with any interests accrued thereon as from the date specified by the Authority for payment, including the period during which the payment of the said Accrual of interest. Added by: XIX.2024.46.
MALTA DIGITAL INNOVATION AUTHORITY administrative penalty was suspended.
Service of notices. Amended by: XIX.2024.47.
Art. 51
Provided that the provisions of this paragraph shall not apply to the service of documents filed before the Tribunal or any Court.
Proceedings for debts due to the Authority. Amended by: XIX.2024.48.
Art. 52
When the Authority wants to sue for the recovery of a debt due to the Authority under the Act or any other law which it is entitled to administer or enforce or under European Union and, or international legislation applicable to Malta, the Chairperson or the Chief Executive Officer or an officer of the Authority duly authorised by the Authority to act on its behalf may make a declaration on oath before the registrar of the Courts, a Judge or a Magistrate wherein he specifies the nature of the debt and the details of the debtor and confirms that the debt is due.
Art. 53
No person shall make or cause to be made any advertisement or other representation, in any visual or aural form, whether the advertisement is made in Malta or otherwise, either specifically or by implication, to the effect that: (a) any innovative technology has the recognition of the Authority, if this is not the case;
Name of the Authority not to be used in any advertisement and prohibition of misrepresentation. Amended by: XIX.2024.49. (b) any activity carried out by any person or provided by or on an innovative technology has the recognition or is conducted with the co-operation or assistance of the Authority, if this is not the case; or (c) any activity is being carried out in, or from Malta in accordance with the regulatory framework applicable to innovative technology when the relevant product, solution or service is not recognised by the Authority; or similar statements based on the circumstances from time to time, and in case of breach such person shall be guilty of an offence under this article.
Exemption from taxes.
Art. 54
Repealed by Act XIX.2024.50.
PART X
Co-ordination with other Competent Authorities; Simplification Co-ordination with other national competent authorities.
Art. 55
Repealed by Act XIX.2024.51.
No duplication of controls and simplification of procedures.
Art. 56
Repealed by Act XIX.2024.51.
Joint Regulatory Efficiency Board.
Art. 57
Repealed by Act XIX.2024.51.
PART XI
Miscellaneous Provisions Power of the Minister to make regulations and of the Authority to issue guidelines. Amended by: XIX.2024.52.
Art. 58
The Minister may, without prejudice to the powers of the Authority, and acting on the advice of the Authority make regulations to give fuller effect to the provisions of the Act, or to prescribe anything that is to be or which may be prescribed in terms of the Act, any law which the Authority is entitled to administer or enforce or any European Union and, or international MALTA DIGITAL INNOVATION AUTHORITY legislation which is applicable to Malta or any other regulatory instrument and to provide for any matter consequential, incidental to or connected therewith.
issued by other national, foreign or international authorities or bodies; (k) issue further guidance and empower the Authority to issue further guidance regarding the form, accessibility and minimum contents of information that shall be made available to users of innovative technology; (l) define and empower the Authority to define different levels of recognition that may be obtained in relation to innovative technology; (m) technology further regulate recognitions of innovative (n) further regulate the recognition of innovative technology service providers, including the level of independence and other qualities, if any, that are required for the carrying out of their functions and the definition of such terms; (o) define the criteria for determining whether the systems and security access protocols of applicants or recognition holders, as applicable, meet or are maintained to the appropriate international standards that may be established from time to time; (p) prescribe rules for the notification of any activities in or from Malta, or relating to innovative technology which are accessible through the website of the Authority, including when the innovative technology already has the recognition in another country; (q) establish the circumstances and empower the Authority to establish the circumstances in which any person involved in connection with a recognition holder, including MALTA DIGITAL INNOVATION AUTHORITY any service provider is obliged to communicate information to the Authority, prescribe regulations governing the disclosure of information by service providers and establish supervisory and disciplinary procedures for service providers in respect of their duties; (r) extend any provisions of the Act, including but not limited to, the right to an effective judicial remedy to any form of innovative technology; (s) by regulations made under the Act amend any Schedule made under the Act; (t) clarify by means of guidelines any definition in sub-article (1) of article 2; (u) empower and designate the Authority as a competent authority and, or supervisory authority and, or market surveillance authority in relation to innovative technology, data or any other area, as may be prescribed by the Minister; (v) grant to the Authority the power to issue recognitions, create processes and structures, facilitate and generate data sharing by natural or legal persons and the public sector; and (w) prescribe fees in consultation with the Minister responsible for finance.
The Minister may direct or authorise the Authority to establish all necessary details to meet any of the above requirements and conditions by way of guidelines and other binding regulatory instruments to be issued by the Authority under article 6 which shall be ancillary to or independent of any regulations made under the above powers.
Conflict between texts.
Art. 59
Substituted by: XIX.2024.53.
FIRST SCHEDULE (article 2) Innovative Technology (a) artificial intelligence; (b) "distributed ledger technology" and "decentralised ledger technology (DLT)"; (c) internet of things.
SECOND SCHEDULE [Article 5(4)(d)] Regulatory laws Repealed by Act XIX.2024.54.