Abela pledges 'right to company bank account' to soften FATF blowback

Many businesses and self-employed workers have struggled with opening bank accounts after increased due diligence pressures from FATF and Moneyval

Prime Minister Robert Abela pledged to make banking easier for businesses by introducing a right to a basic bank account for businesses and self-employed people.

During a press conference on Monday, Abela said the Labour Party would legislate to create a framework for all business and self-employed workers to have access to a basic bank account.

“This will be an extension of the right we introduced for individuals to have a basic bank account in conformity to EU rules on financial supervision,” he said.

Abela said many business owners told him and the Labour Party that opening a bank account in Malta was becoming a struggle after increased pressure on Malta for its due diligence checks.

The increased pressure was largely due to high scrutiny on Malta’s anti-money laundering regime. Indeed, a Moneyval report from 2019 identified deficiencies with technical compliance, eventually culminating with Malta’s placement on the FATF’s greylist.

Abela clarified that banks will still retain legal discretion when opening an account for a client. “If they feel there are legitimate reasons to not open an account, then they are offered that legal discretions.”

He further pledged to set up a credit review office that would arbitrate between local banks and clients applying for a loan.

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“It is unacceptable for business loans to take months to be processed,” he said.

Abela added that the Labour Party will introduce measures to make business easier, including the centralisation of due diligence processes.

He said that any unnecessary bureaucratic processes will be eliminated, with the aim of avoiding having businesses presenting the same document to multiple entities.

Additionally, any due diligence carried out by one entity will be good for use in any other entity. “We’re a single government at the end of the day,” he pointed out.

A financial grant would be provided to all companies growing their operations through capital investment. The grant would cover 30% of any fixed capital investment. For Gozitan companies, this increases by 10%.

The Labour Party would also introduce a profit reinvestment scheme, whereby government refunds all tax paid on profit that is reinvested into their company.

To promote sustainability, Abela pledged to have energy audits subsidised by government for all SMEs.

Through Malta Enterprise, financial aid will be given to companies to fulfil any recommendations given after the energy audit.

Tax credits will be available for enterprises who fulfil their recommendations.  This will be done by widening the eligibility criteria for the SME-tailored facility offered by the Malta Development Bank.

It will be widened to include green private investments that create green jobs.

Abela pledged to introduce a legal framework for start-ups and a one-stop shop so that all help for start-ups are accessible under one roof.