S.L. 376.7 Art. 5Application for the exercise of a European right by European financial institutions – an agent and distributor.

(1) A European financial institution seeking to provide payment services in Malta through an agent shall communicate to its European regulatory authority:

(i) its intention to provide payment services in Malta through an agent;

(ii) the name, the address and, where applicable, the authorisation number and the unique identification number of the European financial institution;

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

(iii) which payment services activities the European financial institution intends to carry out in Malta;

(iv) a description of the internal control mechanisms that will be used by the proposed agent in order to comply with the obligations 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;

(v) 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; INSTITUTIONS

(vi) where the European 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 Malta, 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 Malta; and

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

(2) A European financial institution seeking to distribute and, or redeem electronic money in Malta through a distributor shall communicate to its European regulatory authority:

(i) its intention to distribute and, or redeem electronic money in Malta through a distributor;

(ii) the name, the address and, where applicable, the authorisation number and the unique identification number of the European financial institution;

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

(iv) a description of the internal control mechanisms that will be used by the proposed distributor in order to comply with the obligations 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;

(v) 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;

(vi) where the European financial institution intends to outsource operational functions of the issuance and, or distribution and, or redemption of electronic money to other entities in Malta, the operational functions of the issuance and, or distribution and, or redemption of electronic money which it will be outsourcing to other entities in Malta; and

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

(3) Within one month of receipt of all of the information referred to in sub-regulations (1) or (2) as applicable, the competent authority shall, in terms of Article 28(2) of the Payment Services Directive, receive the information from the European regulatory authority by means of the templates set out in Annexes III and IV to the Commission Delegated Regulation.

(4) Where the competent authority receives all the information referred to in sub-regulations (1) or (2), as applicable, from the European regulatory authority in accordance with sub-regulation (3), it shall, within one month of receipt of the said information, assess that information and provide the European regulatory 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 European financial institution in the exercise of a European right.

(5) If the competent authority has any reasonable grounds for concern in connection with the intended engagement of the agent or distributor, as applicable, with regard to money laundering or terrorist financing within the meaning of Directive (EU) 2015/849, it shall inform the European regulatory authority accordingly.

(6) Where the European regulatory authority does not agree with the assessment of the competent authority it shall, in terms of Article 28(2) of the Payment Services Directive, provide the latter with the reasons for its decision.

(7) Within three months of receipt of all of the information referred to in sub-regulation (1) or (2), as applicable and in terms of Article 28(3) of the Payment Services Directive, the competent authority shall receive communication of the European regulatory authority’s decision.

(8) Following communication to the competent authority of the European regulatory authority’s decision in terms of sub-regulation (7), the competent authority shall publish the information referred to in sub-regulation (1)(i) to (iii), in the public register established and maintained by the competent authority in accordance with article 8D of the Act.

(9) Upon entry in the public register of the home Member State in terms of Article 14 of the Payment Services Directive, the agent, may commence its activities in Malta.

(10) The competent authority shall, in terms of Article 18(3) of the Payment Services Directive, be informed by the European regulatory authority of the date from which the European financial institution shall commence its activities in Malta through the agent or distributor by means of the template set out in Annex VI to the INSTITUTIONS

Commission Delegated Regulation.

(11) In the event of a change regarding the information communicated in accordance with sub-regulation (1) or (2), including any additional agents, distributors or entities to which activities are outsourced in Malta, as applicable, the competent authority shall, in terms of Article 28(4) of the Payment Services Directive and Article 8 of the Commission Delegated Regulation, be informed of such changes by the European regulatory authority concerned and, in such cases, the provisions of sub-regulations (3) to (10) shall apply.