1. Introduction
A. History And Background
The Maltese archipelago is composed of five islands. Malta is
the largest, followed by Gozo, its sister island. Throughout the
centuries, many nations have availed themselves of the strategic,
central position of the Maltese islands and their impressive
natural harbours in the centre of the Mediterranean.
The history of the Maltese islands dates back 7,000 years. The
Maltese Islands formed part of both the Roman and Byzantine empires
before being subject to Arab and, later, Norman domination. In
1530, the Maltese Islands were ceded by the Holy Roman Emperor
Charles V to the Order of St John and in 1798 the islands were
surrendered to Napoleon. French administration ended in 1800, after
which Malta was subject to British colonial rule until its
independence in 1964. Malta became a Republic in 1974 and in May
2004 became a member of the European Union (EU), adopting the euro
(EUR) as its official currency on 1 January 2008.
Today, Malta is a centre of commerce and investment. Maltese and
English are the two official languages. Most business
correspondence, commerce and trade is conducted in English, making
Malta an attractive location from which to conduct international
business and in which to take up residence. It is reassuring to
note that on 2 April 2009, when the G20 met, Malta had the
international requirements in place and therefore was on the white
list of jurisdictions.
Despite the financial crisis, the Maltese market remains stable
and no bailouts for banks have been necessary.
A report on regulatory developments in financial services and
anti-money laundering in Malta published by the Bureau for
International Narcotics and Law Enforcement Affairs of the US State
Department on 1 March 2004 confirms the progress made in financial
services regulation and outlines Malta’s transition into a
mainstream financial services jurisdiction that is today a member
of the EU.
B. Legal System
Malta has a written constitution that prevails over any other
law and requires two-thirds parliamentary majority to be changed.
Although Maltese law is based on the civil-law system, it has been
strongly influenced by other legal systems, particularly English
common law and, more recently, EU legislation. Although Maltese
civil law is largely based on Roman law principles, fiscal law,
company law, shipping and maritime law, and most fields of
commercial law are heavily influenced by English law. Financial
services legislation in Malta is principally based on EU
legislation.