MALTA Law and Practice Contributed by: Dr Josef Cachia Fenech Gonzi and Cherise Abela Grech, GTG Legal
The notification must include information on: • the ultimate beneficial owners; • the source of funding; • the activities to be undertaken; and • details on the products, services and busi - ness operations of both the foreign investor and the Maltese entity. Additionally, since Malta’s accession to the EU on 1 May 2004, there are no exchange control regulations in place. This means there are no restrictions on capital movements, and no dis - tinction is made between undertakings owned or controlled by EU citizens and those owned or controlled by non-EU citizens concerning exchange controls. However, the Minister for Finance retains the power to impose restric - tions on capital transactions in exceptional cir - cumstances to preserve the stability of Malta’s financial system.
Lastly, while there are no specific banking-relat - ed restrictions that prohibit foreign VC invest - ments, it is essential for investors to ensure that any financial transactions comply with Malta’s AML and CTF regulations.
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