The Investment Services Act, 1994, provides the legal framework for the provision of the Forex Services in Malta.
As per the Act, a Forex means Foreign Exchange or ‘the currency market’ and is the market in which all world currencies are traded. Malta Forex License Categories
The category 1 license is of two types:
license holders are authorised to provide investment services, and to hold or control clients’ money or customers’ assets, but not to deal for their own account or underwrite.
License holders are authorised to provide investment services, to hold and control clients’ money or customers’ assets, and to deal for their own account or underwrite.
License holders are authorised to act as trustees or custodians of collective investment schemes.
The entity making the application is a Malta company under the Companies Act (CAP. 386)
Company includes:
a) A company,
b) Limited partnerships,
c) Unit trust or
d) International holding companies.
The license will need at least three (3) directors who are Fit and Proper, with at least one (1) Maltese resident.
• The Payment Service Provider/Money Transfer Provider, will need at least 2 (two) shareholders.
• Corporate shareholding is allowed and 100% foreign ownership is permitted.
The License must establish and maintain an appropriate and effective compliance function within the firm which operates independently of all operational and business line functions and senior or supervisory management.
The License must establish and maintain an appropriate and effective Money Laundering Reporting function within the firm which operates independently of all operational and business line functions and senior or supervisory management..
The License must establish and maintain an appropriate and effective Risk management function within the firm which operates independently of all operational and business line functions and senior or supervisory management.
The License shall establish an internal audit / audit committee in order to undertake the internal audit function of the company and which shall be independent for the management of the company or outsource.
The Applicant must have the prescribed minimum paid-up capital and is able to meet the prescribed minimum net liquid capital requirement in cash or readily marketable securities. The prescribed minimum paid-up capital;
i. Category 1a - 50 000 euros
ii. Category 1b - €20,000 (with PI cover) - €50,000 (without PI cover)
iii. Category 2 - 125 000 euros
iv. Category 3 - 730 000 euros