POLICIES

Account switching info guide

Your guide to switching banking services

The Credit and Financial Institutions (Payment Accounts) Regulations, 2016 provide for the switching of banking services from one bank to another in Malta, without any unnecessary delay to the customer.

Switching your account or some banking services from one bank to another is simple. Following the STEPS below will ensure that the switching process is carried out smoothly and easily.

Step 1

If not already held, open a new account at the bank of your choice (the “receiving bank”) to which you wish to switch all or some banking services from another bank (the “transferring bank”).

Step 2

Submit an authorisation in writing as required by the receiving bank to commence the procedure for switching either all or only some services from the transferring bank to the receiving bank. Through such authorisation, you will be providing your specific consent to the transferring bank and to the receiving bank to perform the tasks specified in STEPS 3, 4 and 5 below.

The authorisation has to be signed by all account holders in case of two or more holders on the account.

You will be provided with a copy of your authorisation by the receiving bank.

Step 3

Within two business days from the receipt of your authorisation, the receiving bank will request the transferring bank to perform some or all of the following tasks as per your authorisation:

transmit to the receiving bank, and to yourself if you so request, a list of the existing standing orders for credit transfers and available information on direct debit mandates that are being switched;
transmit to the receiving bank, and to yourself if you so request, the available information about recurring incoming credit transfers and creditor-driven direct debits executed on your account during the previous 13 months;
stop accepting direct debits and incoming credit transfers with effect from the date specified in the authorisation;
cancel standing orders with effect from the date specified in the authorisation;
transfer any remaining positive balance to the account opened or held with the receiving bank on the date specified by yourself; and
close your account with the transferring bank on the date specified by yourself.

Step 4

Upon receipt of such a request from the receiving bank, the transferring bank will carry out the following tasks, as per your authorisation:

send the receiving bank, within five business days, a list of the existing standing orders for credit transfers and available information on direct debit mandates that are being switched, as well as the available information about recurring incoming credit transfers and creditor-driven direct debits executed on your account during the previous 13 months.
stop accepting incoming credit transfers and direct debits with effect from the date specified in the authorisation, following which it shall inform the payers and the payees concerned in writing, within five business days, of the reason for not completing any subsequent payment transaction;
cancel standing orders from the date specified in the authorisation;
transfer any remaining positive balance from your account to the account opened or held with the receiving bank on the date specified in the authorisation;
close your account on the date specified in the authorisation, provided you have no outstanding obligations on that account. You will be informed immediately should the transferring bank be unable to close the account due to outstanding obligations on the said account.

Step 5

Within five business days from receipt of the information specified in STEP 4 (a) above from the transferring bank, the receiving bank shall, if provided for in your authorisation and provided that the information provided by the transferring bank or by yourself enables it to do so, carry out the following tasks:

set up the standing orders for credit transfers requested by yourself and execute them with effect from the date specified in the authorisation (see Note 1 below);
make any necessary preparations to accept direct debits, and accept them, with effect from the date specified in the authorisation (see Note 1 below);
inform payers specified in the authorisation and making recurrent incoming credit transfers into your account of the details of your account with the receiving bank, and the date from which this account is to be used for such transfers. The receiving bank will also transmit to the payers a copy of your authorisation, and may ask you or the transferring bank to provide any missing information in relation to such incoming credit transfers (see Note 2 below);
inform payees specified in the authorisation, and using a direct debit to collect funds from your account, of the details of your account with the receiving bank and the date from which direct debits are to be collected from that account. The receiving bank will also transmit to such payees a copy of your authorisation, and may ask you or the transferring bank to provide any missing information in relation to such direct debits(see Note 2 below);

Notes

Note 1
Such date must be at least six business days after the date on which the receiving bank receives the information specified in STEP 4 (a) above from the transferring bank.

Note 2
Should you prefer to personally provide the information referred to in STEP 5 (c) and (d) above to the payers and payees, rather than authorising the receiving bank to do so, the latter bank will provide you with standard letters to enable you to do so.

Fees

With the exception of the services referred to in (a) and (b) below, both the transferring and the receiving banks are entitled to charge a fee (Tariff of Charges available on a durable medium from the Bank’s branches or by clicking here). You are entitled to the following services FREE OF CHARGE:

access to details of any standing orders and direct debits applicable to the accounts you hold with both the transferring and receiving banks;
the provision of information by the transferring bank in accordance with STEP 4 (a) above.

Complaints handling

In the eventuality that you have any complaint, please refer to the complaints handling policy.

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