Government entities that refuse cash payments falling foul of the law

Transport Malta and Identity Malta’s searches unit are two government entities that refuse cash and only accept card payments for services rendered.

But this policy prohibiting cash payments is not only causing inconvenience to some clients but is also against the law.

A spokesperson for the Office of the Prime Minister, which is responsible for the public service, said there is no government-wide directive prohibiting cash payments.

“Any entity acting otherwise is falling foul of the law,” he said.

“Cash is legal tender in Malta, and cannot be refuted as payment, as long as it is within the statutory limits applicable to certain transactions,” the spokesperson said.

The issue stems from several complaints received by MaltaToday from clients who required a service from the two entities and were caught by surprise when they were informed by clerks that cash is not being accepted.

One irate client was left ruing his fate after being denied the option to pay in cash for documents he requested from Identity Malta’s searches unit. “I was given the lame excuse that the bank with which the entity had an account was not accepting small change,” the client said.

“I eventually paid by card but I could not but feel sorry for an elderly lady who was in the queue next to me who had no card and was left asking herself how she could pay.”

It is unclear whether Transport Malta and Identity Malta are the only two government entities that have adopted a no-cash policy.

Asked specifically whether these entities will be instructed to accept cash payments as well, the spokesperson did not reply.

Cash remains legal tender with the only restriction being on purchases of €10,000 and higher that involve cars, objects of art, property and other valuable items.

The cash restriction on these high-end luxury products is to stamp out money laundering.