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Banking & FinanceLitigation & Dispute Resolution

Court of Appeal Judgment Supports Bank’s Decision Not To Authorise Client To Withdraw Funds From His Account

This article was written by​ Dr Maria Lisa Buttigieg & Tessa Borg Bartolo.In a recent decision delivered by the Court of Appeal in its Inferior Jurisdiction, the Court of Appeal overturned a decision delivered by the Arbiter for Financial Services concerning BNF Bank's decision not to authorize a client to withdraw funds from a bank account held in the client's name and this after the Bank was informed by the client that his mother, who was indicated as a debtor in a number of garnishee orders, was using his account to deposit her salary.Although the client had admitted that his…
Maria-Lisa Buttigieg
15th November 2021
Litigation & Dispute Resolution

Recent Court of Appeal Judgment Confirms Banking Practice of Charging of Commitment Fees

This article was written by​ Dr Maria Lisa Buttigieg & Tessa Borg Bartolo​​.A client of BNF Bank p.l.c. instituted proceedings before the Arbiter for Financial Services against the said Bank in order to obtain a refund on certain fees imposed by the Bank in relation to loan facilities granted by the Bank to the said client.The fees which the client requested a refund of consisted of relative processing fees, legal fees and commitment fees. The client in her complaint alleged that the fees were not clearly communicated to her and that the commitment fee should not have been charged since she had…
Maria-Lisa Buttigieg
15th October 2021
Banking & Finance

The Central Bank of Malta Issues Directive 19 on the Use of Cheques and Bank Drafts

This article was written by​ Dr Michael Psaila and Mr Neeraj Bharwani.Directive No 19 on the Use of Cheques and Bank Drafts ('the Directive') was issued by the Central Bank of Malta on 7th July 2021 with the aim of promoting safe and effective use of cheques and bank drafts ('paper-based instruments') drawn on Maltese banks and financial institutions. Furthermore, institutions which exercise their passporting rights to provide their services in Malta, post office giro payment institutions and the Central Bank of Malta ('Bank') when acting as a payment service provider, and any natural or legal person making use of…
Michael Psaila
21st July 2021
Banking & Finance

ESAs issue joint supervisory statement on the application of the Regulation on Sustainability-related disclosures in the Financial Services Sector (SFDR)

On 25 February, 2021 the triumvirate of European Supervisory Authorities, the EBA, EIOPA and ESMA (the "ESAs") published a joint statement on the effective and consistent application and national supervision of the Sustainable Finance Disclosure Regulation ("SFDR"). The joint statement is intended to help mitigate the risks of divergent application of the SFDR, and promote a level playing field to protect investors. In their joint statement, the ESAs recommend that during the interim period between 10th March, 2021 (the date upon which most of the provisions on sustainability-related disclosures laid down under the SFDR will apply) to the application date…
Simon Pullicino
1st March 2021
Banking & Finance

EBA backs EU Commission’s Efforts to Strengthen AML/CFT Framework.

On 19 August, 2020 the EBA published its response to the European Commission's Action Plan for a comprehensive Union policy on preventing money laundering and terrorism financing (ML/FT), largely throwing its support behind the Commission's Action Plan. In its response, the EBA has provided technical input designed to better guide the Commission in its implementation of the Action Plan. In the EBA's view, a comprehensive assessment of the current EU AML/CFT framework is necessary to ensure that the EU and the Member States are well-equipped with an effective set of tools in its AML/CFT arsenal. In endorsing the Action Plan,…
Simon Pullicino
24th August 2020
Banking & Finance

The Court of Justice of the European Union Gives Preliminary Ruling on Unfair Terms in a Mortgage Loan Agreement

FactsCase C-125/18, "Marc Gomez del Moral Guasch vs. Bankia SA" concerns a request to the European Court of Justice (the "ECJ") for a preliminary ruling from Juzgado de Primera Instancia No 38 de Barcelona (Court of First Instance No. 38, Barcelona, Spain) in relation to the fairness or otherwise of a contractual term governing the variable ordinary and remunerative interest rate in a mortgage loan agreement. Under the agreement in question, the interest rate payable by Mr Gomez del Moral Guasch was to vary according to the reference index based on the mortgage loans granted by the Spanish savings banks,…
Nicole Portelli
17th March 2020