Malta offshore bank account opening is often seen as an “easier to access” alternative when compared to other European banking options – this is wrong.
Opening an offshore account in Malta is far more difficult than opening in other low-barrier banking hubs like the Isle of Man or even Jersey.
In this article, we’ll provide an introduction to opening a Malta offshore bank account. We’ll also share why other European options might be worth considering instead.
Feel free to use the table of contents to skip ahead to the topics that are most relevant to you:
Table of Contents
- Malta Bank Account Opening 101
- Opening at a Malta Offshore Bank
- Alternatives to Maltese Banks
- Should You Open a Bank Account in Malta?
Malta Bank Account Opening 101
Malta is an island in the Mediterranean, between Sicily and North Africa. It’s part of the EU. And, along with Cyrpus, Malta has often been labeled as one of the EU “offshore hubs”.
In reality, Malta plays a very different role in the European banking system than most people think. Malta is an offshore booking center. More specifically, it’s where major European banks “book” their banking activities for major corporate clients.
For this reason, non-residents may have an easier time opening accounts in sophisticated banking jurisdictions like Switzerland, Liechtenstein, or Luxembourg instead – if they can meet the deposits.
In other words, Malta is not a retail banking hub… at least, not for non-residents. And it’s certainly not on par with openly non-resident jurisdictions like Guernsey, Jersey, or Isle of Man which purposefully cater to non-resident clientele.
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Malta vs Global Regulators
It’s important to note that Malta has been under the watchful eye of regulators for the past few years. Of course, we could speculate on the real reasons why Malta was put in the “regulatory” penalty box…
But, the official FATF memo cited poor implementation of anti-money laundering (AML) and combatting the financing of terrorism (CFT) procedures, including inadequacies in recording beneficial ownership information.
Fortunately for Malta, the FATF (Financial Action Task Force) deemed Malta to be on good behavior in June 2022 and removed it from the list of countries subject to increased monitoring. Note: Malta was the only EU member country on the list at the time.
So, for the time being, Maltese banks (and the transactions they send) seem to be free and clear from the FATF grey list. But, the FATF could put Malta back on the list again in the future.
For this reason, it’s worth noting that countries found on the FATF greylist are often subject to enhanced due diligence which can make sending and receiving transactions time-consuming and very annoying.
Opening at a Malta Offshore Bank
Now, as mentioned, a Malta offshore bank account isn’t the easiest-to-access option for non-resident individuals.
Opening an Offshore Bank Account in Malta
But, there are certain people (and businesses) who have clear ties to Malta that can open an account here. With this in mind, let’s take a look at some of the scenarios where opening an offshore bank account in Malta might make sense:
- Non-resident individual who travels to Malta regularly
- Non-resident individual who is actively investing in Malta
- Non-resident individual who is employed by a Malta company
- Malta offshore company that needs to make local payments
- Non-resident company that needs to pay local contractors
- Non-resident company that is investing in Malta
Who Should Open a Maltese Bank Account?
Of course, the most clear-cut cases for opening a bank account in Malta are for those who actually reside in Malta, have tax residency in Malta, have a Maltese company, or have a locally operating business in Malta.
However, if you find yourself in any of these situations (resident or local business), we strongly suggest that you visit a local bank branch in person, as this will help you streamline account opening.
Alternatives to Maltese Banks
As mentioned, if you are considering opening a Malta offshore bank account, there are other European alternatives you may want to consider instead.
These alternative jurisdictions include Andorra, Austria, Guernsey, the Isle of Man, Jersey, Lithuania, Liechtenstein, Monaco, and even Switzerland.
Of course, there are other options to choose from in Europe as well, but these nine countries are the main offshore banking options that individuals can choose from. If you are looking for a business or corporate banking you may want to also consider Cyprus and Luxembourg, respectively.
Should You Open a Bank Account in Malta?
In most cases, we only suggest a Malta offshore bank account if an individual (or business) has clear, documented ties to Malta. In all other cases, it is usually easier (read: more realistic) to open European offshore bank accounts elsewhere.
Ready to Open a Bank Account?
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