NEWS | Wednesday, 01 August 2007

‘Last-minute rush’ leads to extension of registration scheme

A last-minute rush by people interested in registering for their undeclared cash with the Central Bank of Malta before the introduction of the euro led the Finance Ministry to extend the registration scheme until 31 August.
The Central Bank of Malta said in a statement on Monday that this decision had been taken “as there are strong indications that a substantial number of persons who showed interest in the Scheme will not manage to register by the original closing date of 31 July 2007”.
Parliamentary Secretary in the Finance Ministry Tonio Fenech told Business Today that “as always happened in the past people leave for the last moment and thus agents start asking for an extension.
“An important feature is that we are also allowing people to register and deposit cash directly with the Central Bank, as it appears that some people who have in the past not trusted banks with their cash would have been discouraged to go to them now. .

Therefore they might be more inclined to participate in the scheme,” he said.
Asked whether the extension meant that the uptake of the registration scheme until then had not been satisfactory, Fenech said: “The Finance Ministry has not seen the figure for July as these are reported by the agents after the month end however clearly from soundings people are still risking.
“Some may have also been ill-advised by a number of intermediaries, that certain products could solve there problems while retaining confidentiality. There are no products that do this, not even trust accounts, and therefore I suggest people to seek the appropriate advice, possibly directly from the Central Bank,” he appealed.
The scheme was launched by the Ministry of Finance in April in preparation for the adoption of the euro as Malta’s national currency. Its purpose is to provide individuals residing in Malta with a unique opportunity to regularise their position in respect of their holdings of eligible assets in those cases where the associated income has not been declared for the purposes of the Income Tax Act.
Eligible assets may be registered under the scheme through Appointed Registration Agents. These include banks, stockbrokers and investment services licence holders, as well as foreign exchange bureaux and other licensed financial institutions. In response to requests from the public and financial intermediaries, it has been decided that registration of eligible assets may also be effected through the Central Bank of Malta.
Maltese lira and euro currency notes registered under the scheme must be deposited in a special term deposit account for a period of one year without interest. Such registered currency notes may be deposited either with local banks or the Central Bank of Malta at the option of the applicant. This increased flexibility has also been introduced in response to requests from the public and financial intermediaries.
Further information on this scheme is available from the Central Bank of Malta and Registration Agents.