The code of standards for resident agents: Strengthening Malta’s position as a leading flag state

On 30th January 2026, the Registry of Ships (the “Registry”) introduced the Code of Standards for the Appointment and Responsibilities of Resident Agents (the “Code”) through Merchant Shipping Notice 203. The principal aim of the Code is to regulate the documentation and information requested by local resident agents offering their services to foreign clients, with the ultimate goal being to safeguard Malta’s standing as a recognised flag State while continuing to attract and retain quality shipowners.

The Code builds on existing due diligence practices by setting out clear expectations whilst also making the Maltese flag more attractive to those who value regulatory certainty and transparency.

Under Malta’s Merchant Shipping Act (the “Act”), only qualified persons are deemed to be eligible to own a Maltese ship. The Ships Eligible for Registration Regulations (Subsidiary Legislation 234.23) (the “Regulations”) permit certain international owners (non-Maltese individuals and companies) to qualify as such, provided a Maltese resident agent is duly appointed and represents international owners in all matters relating to Maltese ships, particularly in ensuring communication between the Registry and the international owner.

The Rationale for a Code of Standards

The ever-growing emphasis on Know-Your-Client (“KYC”) obligations was a driving force behind the issuance of the Code applicable to resident agents and introduces de minimis rules to mitigate undesirable and sanctioned persons from using the Maltese flag.

The Code provides certainty to resident agents and operates alongside the Regulations to formalise their functions and responsibilities. Rather than inventing new burdens, the Code builds upon long-standing industry practices, which were shaped by the guidance and insight of the Malta Maritime Law Association.

A key benefit of the Code is that it formalises unwritten rules on the bare minimum KYC documents requested on international owners whilst simultaneously guiding resident agents to ensure a uniform approach. This Code places responsibility on resident agents to carry out the necessary screenings and checks on clients utilising the Maltese flag.

Endorsing Standard Practices

By and large, the appointment process of the resident agent has remained unchanged. Prior to the issuance of this Code, it was standard practice for local resident agents to carry out client and officer sanction screenings. The Code now formalises the need for resident agents to ensure that they regularly update the information collected on their clients in order to remain compliant with the Registry’s requirements. Sanctions screenings being carried out regularly “ensures that any non-compliance and matches are immediately flagged to the competent authorities in Malta and immediate action is taken by the Resident Agent”.

Resident agents are to regularly review and evaluate their clients’ information which must be available to be scrutinised by the Registry whenever required.

Mandatory Documents to be provided by International Owners

A mandatory obligation is placed on resident agents to collect the documents as listed in the Code from international owners that are legal entities:

1. established outside the EU and the UK, which own or intend to own a non commercial/pleasure vessel of 24 metres or more; or
2. established in a jurisdiction listed in the EU Sanctions Map and owns any vessel of 24 metres or more in length, except where the international owner is directly or indirectly owned by a bank, financial institution or a listed entity.

For international owners who are natural persons, a valid identification document and evidence of residential address suffice.

As a recommended best practice, the Code urges resident agents to apply an equivalent standard to all other international owners outside the EU and UK. Unlike procedures adopted by the financial services sector, the Code was crafted to provide tailored KYC requirements on international owners which ensure practical compliance with the realities and exigencies of the maritime industry.

Beyond the Code’s recommendation, the Registry reserves the right to request enhanced due diligence at any time, including additional information or documents from resident agents on international owners and details of their ultimate beneficial owner(s). When requested, the resident agent must supply the required information promptly and cooperate fully with any further inquiries, within the timeframe specified by the Registry.

Resident agents are also responsible for maintaining a working relationship with international owners which includes agreed upon communication protocols, identification of authorised persons for submissions and documented terms and procedures for the appointment, replacement and termination of said relationship. A clear process must be in place in the event that the resident agent loses contact with the international owner. The Code further clarifies the international owner’s key obligations, including the need to respond promptly to information requests and to indemnify the resident agent where appropriate.

Annual Declaration

In order to guarantee continuous compliance, the Code has introduced a new requirement through a standard annual directors’ declaration form which resident agents must obtain for each relevant legal person, confirming that there have been no changes to the company structure, ultimate beneficial ownership or control of the company, supported by any necessary corroborating documents. Furthermore, the international owner must notify the resident agent without undue delay of any such changes, enabling immediate reporting to the Registry if required.

Conclusion

Resident agents are expected to act as gatekeepers to prevent sanctioned persons and vessels from using the Maltese flag, and as a filter to mitigate KYC risks and protect the flag’s reputation. The Code also provides greater clarity and predictability for resident agents, enabling them to perform their duties with confidence. Overall, it marks another important step in upholding the strong and reputable standing of the Maltese flag.