On the 20th of March 2023, the Central Bank of Malta (the “CBM”) published a new directive in terms of its powers under article 34(5) of the Central Bank of Malta Act (Chapter 204 of the laws of Malta). The new directive (numbered 6) will enter into force with immediate effect, and participants to TARGET-Malta are required to ensure adherence to the provisions of such directive.
The revised CBM directive no.6 will repeal both the previous CBM directive numbered 6 on the Harmonised Conditions for Opening and Operating Payments Module Accounts, T2S Dedicated Cash Accounts in Target2-Malta and TIPS Dedicated Cash Accounts on TARGET2-Malta as well as CBM directive numbered 7 on the Provision of Intraday Credit and Auto-Collateralisation.
The purpose of the newly published CBM Directive No. 6 on New Generation Trans-European Automated Real-Time Gross Settlement Express Transfer System (TARGET) is to fully implement Guideline (EU) 2022/912 of the European Central Bank (ECB/2022/8) on a new-generation Trans-European Automated Real-time Gross Express Transfer system.
The new CBM directive no.6 is divided into three sections namely:
- Harmonised Conditions for Participation in TARGET (Annex I);
- Target Governance Arrangements (Annex II); and
- Definitions (Annex III).
Should you have any queries on the new CBM directive no.6, please get in touch with Andrew Caruana Scicluna (andrew.caruanascicluna@camilleripreziosi.com) or Luke Mizzi (luke.mizzi@camilleripreziosi.com).
