The Central Bank of Malta (CBM) has issued a new Directive on the use of cheques and bank drafts which will come into effect on 1^st January 2022.

Some key changes that are likely to impact you:

1. ‘Or Order’ cheques will be payable only to the payee named by the drawer, meaning that cheques will not be transferable even if your cheque book holds the word ‘Or Order’;
2. Banks will no longer honour cheques for amounts equal to or less than €20.00;
3. Cheques should be dated on the day they are issued. Post-dated cheques will be honoured by the Bank on the day of receipt, irrespective of its future date;
4. Cheques higher than €5,000.00 payable to individuals are to be deposited in the beneficiary’s account and cannot be encashed. BOV’s encashment limit is currently set at €2,500.00;
5. If during the preceding twelve (12) calendar months, a client issues six or more cheques that could not be honoured, the Bank will, for a period of two years, suspend cheque issuing facilities for said client;
6. Cheques will continue to remain valid for six months from the date of issue.

More details on the Directive and Guidance notes can be found on the Central Bank of Malta’s website here.

Should you require further assistance, email us on [email protected] or reach out to your Branch or Relationship Manager who will be pleased to be of assistance and guide you accordingly.