Cap. 233 Art. 4Restrictions in exceptional circumstances.

(1) Where exceptional circumstances arise, the Minister may, on the recommendation of the Central Bank, make regulations imposing such restrictions on capital transactions and related payments, whether of a specific or a generic nature, as may be deemed necessary: Provided that such restrictions shall not be imposed in relation to a Member State.

(2) For the purposes of subarticle (1), exceptional circumstances shall be deemed to exist, where the Minister acting upon the recommendation of the Central Bank, declares that:

(a) there is a sudden crisis in Malta’s balance of payments; or

(b) movements of capital to or from Malta cause or threaten to cause serious difficulties for the stability of the financial system.

(3) Regulations made under subarticle (1) shall be revoked by the Minister without delay as soon as the grounds which gave rise to such restrictions cease to exist and, in any case, shall not remain in effect for a period exceeding six months.