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British citizens’ rights in Malta

In June 2019, the Financial Action Task Force (FATF) established various rules to combat the misuse of virtual assets for the purpose of money laundering and financing of terrorism. The funds travel rule featured in the FATF’s recommendations as well as it requires Virtual Asset Service Providers (‘VASPs’) to collate and share information about the sender (originator) and receiver (beneficiary) whilst undertaking a transaction.

The possibility of Malta’s power grid being hit by a disruptive cyberattack is not remote. In October 2019, Siemens and Ponemon published the findings of a worldwide joint survey carried out on a sample of 1,700 utility professionals responsible for cybersecurity within their companies (1).

Initial coin offering (ICO) campaigns, sometimes referred to as ‘token sales’ or ‘token-generating events’ (TGE), which raise funds for a venture through the issue of a cryptographic token in exchange for digital currency (fiat or virtual) may be paralleled to online crowdfunding campaigns or initial public offerings (IPOs).

The Maltese government has officially launched its national AI strategy during the Delta Summit 2019. The document is a blueprint for the progressive introduction of AI into Maltese society, which will position the island as a centre of excellence for artificial intelligence-backed technologies. The strategy, which sets a vision for Malta to become the “Ultimate AI Launchpad” by 2030, relies on the attainment of three strategic objectives.

Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri has announced the launch of a cybersecurity scheme, aimed at instilling a cyber security mentality in the private industry. The B Secure Scheme is a government investment of €250,000 to allow companies to ramp up their cyber security initiatives. A survey carried out by MITA, has shown how only 35% of SMEs provide cyber security training to their employees and 80% are interested in providing such training. Cybercrime is a real and present threat for all Maltese businesses.

Malta Budget 2020: what are green bonds? During the presentation of the 2020 budget, Malta’s Finance Minister Edward Scicluna has announced that the Malta Stock Exchange will open up for green bonds. Green bonds are a way to raise money for projects which bear interest in environment improvement or carry an eco-friendly aspect. Indicatively, such projects may entail the introduction of sustainable renewable energies, clean transportation, low carbon, and good energy efficiency buildings or sustainable waste management.

Directors are in charge of the management and control of the company. They take decisions for and act on behalf of the company, usually during board meetings. These decisions are logged in board minutes or in a resolution signed by all the directors of the company. The appointment of directors, other than the first directors, will typically be regulated by the Articles of Association of the company. However, where the Articles fail to make any mention on this point, the Companies Act provides for their appointment accordingly.

Any EU, EEA or third country national who resides in Malta for more than 3 months is obliged to apply for a Residence Permit. There are various grounds upon which an applicant may apply to require a residence permit

The European Banking Authority (EBA) has published the findings of a consultation held with the supervisory authorities, industry stakeholders and the EBA Fintech Knowledge Hub, to assess the impact of Fintech on business payment institutions (PIs), and electronic money institutions (EMIs). The scope of the EBA’s report is to document the ongoing changes in the industry and educate regulating institutions, supervisors, and the stakeholders. As detailed in the report, the payment industry transformation is being dramatically accelerated by the following factors:

Definition of a lease IFRS 16 represents the first major overhaul of lease accounting in over 30 years. The new Standard will affect most companies that report under IFRS and are involved in leasing, and will have a substantial impact on the financial statements of lessees of property and high value equipment.

Technology is rapidly evolving, and this is proven with the development of blockchain technology, cryptocurrencies and other virtual assets. Concurrently, criminals are also advancing in terms of technology use since traditional crimes such as money laundering, theft, drug trafficking and financing of terrorism are being shifted to the cyber world.

A study published by the European Parliamentary Research Service (EPRS) seeks to examine whether the European Data Protection Regulation and the ancillary framework (GDPR) can coexist with the peculiar nature of blockchain technologies. The study argues that the multiple points of friction which have emerged between the GDPR and blockchain technologies are mainly due to three factors:

The G20 has endorsed the The Organisation for Economic Co-operation and Development’s (OECD’S) roadmap for resolving the ‘tax challenges arising from the digitalisation of the economy’. The reallocation of profits and minimum tax proposals that have emerged following a recent round of consultations could put an end to the arm’s length principle that has governed transfer pricing for decades.

The code of ethics is an important tool which can enhance the reputation and the perception of the public of a profession and an organisation. In fact, local professionals such as lawyers, accountants, auditors and teachers must abide by a code of ethics which is issued by a recognised organisation. Moreover, businesses tend to establish their own code of ethics when they do not have an official code.

A constant challenge faced by our clients is raising finance to fund their ideas and achieve their goals. As part of our service offering, we guide clients through the process of raising funds. Grant Thornton Malta employs a team of specialists from different disciplines who have decades of experience raising finance through various methods, including bank financing, EU funding, capital markets, mergers, acquisitions and private equity.