New regulations on using cheques and bank drafts

Last Updated on Monday, 29 November, 2021 at 2:32 pm by Andre Camilleri

From 1st January 2022, new regulations set by the Central Bank of Malta, under Directive 19 will come into effect, regulating the use of cheques and bank drafts.  APS Bank is currently organising an educational campaign to make customers aware of these changes.

As of next year, customers will only be able to issue and receive cheques for amounts of over €20. Customers will no longer be able to endorse in favour of third parties and cheques will be marked as ‘only’; however it will be possible to use up current stock of ‘or order’ cheque books which will be replaced with ‘only’ cheques in due course.

Directive 19 will require any cheques made payable to an entity/company to be deposited into the respective entity/company account. It will no longer be possible to encash such cheques. Furthermore, customers will not be able to encash cheques above the amount of €5,000. These cheques will be deposited in full into the payee’s account, or a joint account, where the payee is one of the account holders.

The cheque payment option will be suspended for at least two years, for customers whose cheques are dishonoured six times in the past 12 calendar months, due to insufficient funds or any type of invalid cheque.

For more information about Directive 19, please watch this video of an interview with Raissa Grech, Regulatory Compliance Manager, APS Bank, and the Malta Bankers Association. The Bank’s General Terms & Conditions have been updated in line with the new regulations. You may also visit and follow our social media channels for updates.

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