Rules for the safe and effective use of cheques and bank drafts, where the payer, payee and the regulated institutions servicing the paper-based instruments are in MLT.
Reduction of the legal and operational risks linked to these payment instruments.
The updated provisions enable payment service providers to make a distinction, when discontinuing the cheque issuance services, between the paper-based instruments.
Between those that cannot be honored due to lack of available funds and those that cannot be honored due to insufficient information on the paper-based instrument.
Third parties will now be able to deposit a paper-based instrument in the account of the named payee; an updated set of Guidance Notes on the changes will be issued.
Effectiveness
The updated provisions come into force on Jan. 1, 2025.
