S.L. 123.127 Art. 52Administrative penaltiesfor failure to comply.

(1) Where a Reporting Malta Platform Operator fails to comply with any of the obligations set out in the EU Administrative

Cooperation Directive, the Reporting Malta Platform Operator shall be liable to the following administrative penalties:

(a) where a Reporting Malta Platform Operator fails to register with the Commissioner in accordance with regulation 13(12)(e) and in such manner and within the period of time that the Commissioner requires, to an administrative penalty of five hundred euro (€500);

(b) where a Reporting Malta Platform Operator fails to retain the documentation and information it collected in the course of meeting its due diligence and reporting obligations for a minimum period of five (5) years starting from the end of the year in which the information relates, to an administrative penalty of two thousand five hundred euro (€2,500);

(c) where a Reporting Malta Platform Operator fails to apply the due diligence procedures specified in Section II of Annex V, to an administrative penalty of five thousand euro (€5,000);

(d) where a Reporting Malta Platform Operator fails to report the information required to be reported in accordance with Section III of Annex V within the time stipulated in the said Section III, to an administrative penalty of:

(i) two thousand five hundred euro (€2,500); and

(ii) one hundred euro (€100) for every day during which the default existed, which administrative penalty shall not exceed in total twenty thousand euro (€20,000);

(e) where a Reporting Malta Platform Operator fails to report the information required to be reported in accordance with Section III of Annex V in a complete and accurate manner, to a penalty of:

(i) in the case of minor errors:

(A) two hundred euro (€200); and

(B) fifty euro (€50) for every day during which the default existed, which administrative penalty shall not exceed in total five thousand euro (€5,000);

(ii) in the case of significant non-compliance, an administrative penalty of up to fifty thousand euro (€50,000).

(2) In addition, and without prejudice to any administrative penalties incurred in accordance with sub-regulation (1), where a Reporting Malta Platform Operator is found to have submitted information that is misleading or false, every senior managing official of such Reporting Malta Platform Operator shall be liable to an administrative penalty of not less than ten thousand euro (€10,000) and not more than thirty thousand euro (€30,000):

Provided that a senior managing official of the said Reporting Malta Platform Operator shall not be guilty of such an offence if he proves that he was unaware and could not with reasonable diligence be aware of such act or omission and that he did everything within his power to prevent that act or omission.