Malta cracking down on expats opening bank accounts

The Maltese Financial Services Agency is cracking down on local banks for their reluctance to offer expat bank accounts.

Obviously, one of the first tasks for newly-arrived expats in Malta is to open a local bank account, a procedure which is legally binding on the island’s banks. However, over the past several years, the process has been getting more and more complicated, with expatriates having to provide a totally unrealistic number of proofs of their legitimacy. Requests include references from home country banks – impossible if all home country accounts have been closed – pay slips, proofs of address and Maltese residency, bank statements and much more. Even if all the above and other proofs including questionnaires have been provided, opening accounts can take as long as one month to even a year, according to disgruntled expats.

Expatriate complaints include the feeling that new arrivals are being treated like criminals, and the clamour has grown to the extent that the island’s Financial Services Agency has been forced to step in. The agency’s CEO Joseph Cuschieri has now stated the requirements have ‘gone overboard’ and a more sensible attitude towards expat bank accounts is needed. Cuschieri understands the need for risk management, but agrees the present situation is unbearable for expatriates. The financial watchdog is now reminding Maltese banks they have a legal obligation to provide accounts for residents, and that the provision must take no longer than 10 working days after an application has been approved.

Cuschieri also stated banks must not discriminate against foreign resident applicants and are legally obliged to treat them in the same manner as Maltese citizens. Another controversy identified by expat professionals in Malta is that non-EU expats are being sent letters informing them they are liable for a newly-introduced €60 annual fee levied on ‘international clients’. Given that showing a residency certificate is mandatory when applying for an account, expats believe the banks are moving their current accounts over to international accounts in order to get extra fees. It’s likely that, once UK expats are no longer considered citizens of the European Union, their accounts will be moved as well.