Banks in Malta

Malta's banking system operates under the Banking Act, Cap. 371. It includes core domestic banks, non-core domestic banks and international banks. The Malta Financial Services Authority (MFSA) authorizes banks and supervises their financial soundness and conduct. The European Central Bank (ECB) supervises significant credit institutions through the Single Supervisory Mechanism (SSM). The Central Bank of Malta is part of the Eurosystem and oversees payment systems, including TARGET2-Malta and MTEUROPAY. Malta's other systemically important institutions include APS Bank plc, MDB Group Limited, HSBC Bank Malta plc and Bank of Valletta plc. Check an institution in the MFSA Financial Services Register before opening an account or using a financial service. The same national framework applies across Malta and Gozo, without separate regional or city banking rules in this scope. Banks offer payment accounts, savings accounts, fixed-term deposits, debit and other cards, online banking and mobile banking. The exact availability, minimum balance, fees, foreign-exchange charges and transaction limits depend on the bank and product. Opening an account normally requires identity information, the purpose of the account, a customer and risk profile, and evidence about the source of funds. Anti-money-laundering and counter-terrorist-financing checks, usually called AML/CFT checks, can continue after the account opens. A bank may request evidence about income, transaction purposes or the origin of funds. A Payment Account with Basic Features is available in Malta to a legal resident of Malta or another EU Member State who generally does not already hold another payment account in Malta. It is intended for private use, not for a business, club or charity. The account includes a debit card, cash withdrawals in Malta, Gozo and the EU, card and online payments, transfers, standing orders and EU direct debits. Banks with at least five branches in Malta must offer this account; the required providers include APS Bank, BNF Bank, Bank of Valletta, HSBC Bank Malta and Lombard Bank, while other providers may offer it voluntarily. A bank may check whether the applicant needs the account, but it may not reject the application because of employment, income, credit history or personal bankruptcy. A rejection normally requires a free written explanation within ten days, except where anti-money-laundering rules, national security or public policy restrict disclosure. More than 24 months of inactivity can allow the bank to close the account. An account can generally be switched between providers in the same currency within Malta or between Malta and another EU Member State. The new institution sends the switching request within two days, and the old and new institutions complete their respective tasks within five days. Relevant switching information must be provided free of charge, and the customer is entitled to at least one free account statement each year. A zero balance does not automatically close an account, and a bank may charge a dormant-account fee under its published terms. The Depositor Compensation Scheme protects eligible deposits held with MFSA-licensed banks. The limit is EUR 100,000 for each depositor at each bank, with deposits of the same depositor at that bank aggregated. A joint account holder's share is treated separately for the limit. Deposits in different currencies are generally covered, with payment made in euros using the ECB exchange rate. Compensation should be available within a maximum of seven working days. Certain temporary high balances connected with defined life, property or social events may receive additional protection up to EUR 500,000 for no more than twelve months. Electronic money and investment-linked products without full repayment are excluded, and deposit protection is not investment protection. Payments use IBANs, the international bank account numbers used to identify accounts. A SEPA Credit Transfer normally reaches the recipient on the next business day. A SEPA Direct Debit requires a mandate from the payer. MTEUROPAY connects Maltese payment processing with the EBA STEP2 system for SEPA credit transfers and direct debits. Euro-area payment service providers have had to receive instant euro payments since 9 January 2025 and send them since 9 October 2025. Verification of Payee checks whether the recipient name matches the account details. Banks also perform daily EU sanctions screening. A fee for an instant euro payment may not exceed the fee for the corresponding standard transfer. Cash remains legal tender, while cards, electronic transfers and direct debits are widely used. Cheques remain available in some situations but are a declining legacy payment method. The Payment Services Directive 2 (PSD2) governs many electronic payment protections. Account information services and payment initiation services require the customer's consent. Strong Customer Authentication (SCA) may be required for online access, electronic payments or suspected fraud. Liability for a lost or stolen card is generally limited to EUR 50, unless the customer acted fraudulently or with gross negligence. After the customer reports the loss or theft, liability generally ends. Report an unauthorized payment immediately; reimbursement is generally due by the end of the next business day, and claims normally have a maximum period of thirteen months. Merchants may not add a card surcharge. Fees for transfers within the European Economic Area follow shared-fee rules. Use only providers whose authorization appears in the relevant register. Banks must provide product features and fee information before the contract on a durable medium. Never disclose an OTP, PIN or login credential, and do not send sensitive banking information through email or messaging services. Urgent requests, unusual contact times, changed payment details and fake links or domains are common scam signals. Review account and card transactions regularly and contact the bank immediately when suspicious activity appears. Payment institutions and electronic-money institutions can provide transfers, cards or wallets as functional alternatives to banks. They are not credit institutions, and electronic money is not protected by the Depositor Compensation Scheme. Check each provider's authorization and do not treat a wallet as a substitute for a protected bank deposit. To resolve a banking problem, complain to the bank first. The provider should respond within fifteen working days. If the issue remains unresolved, the Office of the Arbiter for Financial Services can provide an independent process involving mediation, investigation or a decision. The MFSA supervises providers but does not decide individual compensation claims; court proceedings may remain available. Basic accounts are free or carry a reasonable charge, while other account, card, foreign-exchange, minimum-balance and dormant-account fees depend on the provider and product.