S.L. 376.7 Art. 11Application for the exercise of European right by Maltese financial institutions agent and distributor.

(1) A Maltese financial institution may exercise a

European right to provide payment services and, or distribute and, or redeem electronic money in another Member State through an agent and or to distribute and, or redeem electronic money in another

Member State through a distributor if it satisfies the requirements set out in this regulation.

(2) A Maltese financial institution seeking to provide payment services in another Member State through an agent shall communicate to the competent authority:

(i) the name and address of the Maltese financial institution;

(ii) the licence number or registration number of the Maltese financial institution, as applicable;

(iii) the Member State in which the Maltese financial institution intends to provide payment services through the agent;

(iv) the name, the address and, where applicable, the unique identification code or number of the proposed agent;

(v) the payment services activities which the proposed agent intends to provide in another Member State on behalf of the Maltese financial institution;

(vi) a description of the internal control mechanisms that will be used by the proposed agent in order to comply with their obligations at law in relation to money laundering and terrorist financing under Directive (EU) 2015/849, which shall be updated without delay in the event of material changes to the particulars communicated at the initial notification;

(vii) the identity of the directors and persons responsible for the management of the proposed agent and, for agents other than payment service providers, evidence that they are fit and proper persons;

(viii) where the Maltese financial institution intends to outsource operational functions of payment services and, or of the issuance and, or distribution and, or redemption of electronic money to other entities in another Member State, the operational functions of payment services and, or of the issuance and, or distribution and, or redemption of electronic money which it will be outsourcing to other entities in that Member State; and

(ix) any other information which may be required in terms of Article 10(1) of the Commission Delegated Regulation.

(3) A Maltese financial institution seeking to distribute and, or redeem electronic money in another Member State through a distributor shall communicate to the competent authority:

(i) the name and address, of the Maltese financial institution;

(ii) the licence number or registration number of the Maltese financial institution, as applicable;

(iii) the Member State in which the Maltese financial institution intends to distribute and, or redeem electronic money through a distributor;

(iv) the name, the address and, where applicable, the unique identification code or number of the proposed distributor;

(v) whether the distributor intends to distribute and, or redeem electronic money by the Maltese financial institution;

(vi) a description of the internal control mechanisms that will be used by the proposed distributor in order to comply with their obligations at law in relation to money laundering and terrorist financing under Directive (EU) 2015/849, which shall be updated without delay in the event of material changes to the particulars communicated at the initial notification;

(vii) the identity of the directors and persons responsible for the management of the proposed distributor and, where applicable, for distributors other than payment service providers, evidence that they are fit and proper persons;

(viii) where the Maltese financial institution intends to outsource operational functions of the issuance and, or distribution and, or redemption of electronic money to other entities in another Member State, the operational functions of the issuance and, or distribution and, or redemption of electronic money which it will be outsourcing to other entities in that Member State; and

(ix) any other information which may be required in terms of the Commission Delegated Regulation.

(4) Within one month of receipt of all of the information referred to in sub-regulation (2) or (3), as applicable, the competent INSTITUTIONS

authority shall send to the European regulatory authority the said information by means of the templates set out in Annexes III and IV to the Commission Delegated Regulation.

(5) Where the European regulatory authority receives all the information referred to in sub-regulation (2) or (3), as applicable, from the competent authority in accordance with sub-regulation (4), it shall, in terms of Article 28(2) of the Payment Services Directive, within one month of receipt of the said information, assess that information and provide the competent authority with relevant information in connection with the intended provision of payment services and, or distribution and, or redemption of electronic money, as applicable, by the relevant Maltese financial institution in the exercise of a European right. The European regulatory authority shall, in terms of Article 28(2) of the Payment Services Directive, inform the competent authority in particular of any reasonable grounds for concern in connection with the intended engagement of an agent or distributor, as applicable, with regard to money laundering or terrorist financing within the meaning of Directive (EU) 2015/849.

(6) Where the competent authority does not agree with the assessment of the European regulatory authority, it shall provide the latter with the reasons for its decision.

(7) If the assessment of the competent authority, particularly in light of the information received from the European regulatory authority of the host Member State is not favourable, the competent authority shall refuse to register the agent or the distributor, as applicable, or shall withdraw the registration if already made.

(8) Within three months of receipt of all of the information referred to in sub-regulation (2) or (3), the competent authority shall communicate its decision to the European regulatory authority and to the Maltese financial institution.

(9) Upon communication to the European regulatory authority of its decision in terms of sub-regulation (8), the competent authority shall register the agent in the public register established and maintained by the competent authority in accordance with article 8D of the Act and shall publish in the said register the information referred to in sub-regulation (2)(i) to (v).

(10) Upon entry in the register referred to in article 8D of the Act, the Maltese financial institution may commence its activities in the host Member State through the agent.

(11) The Maltese financial institution shall notify the competent authority, without undue delay, the date from which it commences its activities through the agent and, or distributor, as applicable, in the relevant host Member State.

(12) The competent authority shall inform the European regulatory authority of the host Member State of the date from which the Maltese financial institution shall commence its activities through the agent and, or distributor, as applicable, in the host Member State by means of the template set out in Annex VI to the Commission Delegated Regulation.

(13) The Maltese financial institution shall communicate to the competent authority, without undue delay, any relevant change regarding the information communicated in accordance with sub-regulation (2) or (3) including additional agents and, or distributors, as applicable, or additional entities to which activities are outsourced in the host Member States in which it operates and, in such cases, the provisions of sub-regulations (4) to (12) shall apply.