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The economic consequences of COVID-19 on future trading assumptions, and the direct impact on many companies, may place some companies under liquidity pressures. We understand these pressures and have compiled some tips for managing cash flow and mitigating any potential impact on your debt obligations.

Accounting implications of COVID-19

Since it was first identified in the city of Wuhan (China), the COVID-19 coronavirus has infected over 121,000 people, killing over 4,000 patients. While medical scientists work 24/7 to find a vaccine, Artificial Intelligence (AI) researchers have joined the global effort to defeat the virus.

78% of mid-market businesses globally are actively working on removing barriers to gender parity at senior levels according to the latest research from Grant Thornton’s International Business Report.

Representatives of the financial services sector, including the Institute of Financial Service Practitioners (IFSP) and the Malta Banking Association (MBA), have urged all stakeholders, regulatory bodies and practitioners to acknowledge the urgency of repairing Malta’s negative reputation, stating that everyone must play their part.

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.