Cheques cannot be issued for amounts below €20 from January 1 in terms of a directive issued by the Central Bank of Malta on Wednesday. 

The directive also lays down that as from January 1, 2022:

• Cheques will only be encashed or credited to the person named by the payer
• Cheques cannot be dated to a future date, and may be accepted in any case if presented before that future date
• Cheques over €5,000 can only be deposited into the beneficiary’s own account
• Cheque facilities will be withdrawn if cheques are repeatedly issued that cannot be honoured.
• Service providers will ensure that all information related to cheques is retained for at least five years
• Users who breach the regulations are subject to fines up to €200 for each contravention.

The bank said the directive was issued with the full collaboration of the Malta Bankers’ Association, which considers this to be a positive development which will decrease the possibility of such instruments being used for money laundering purposes. 

The MBA said that the implementation of the directive will irrevocably change the nation’s payments landscape and ensure a further shift to more efficient modes of payment, in line with the objectives of the National Strategy for Electronic Payments of August 2018. 

More information about the directive is available online.