The European Banking Authority (EBA) considers that the application of the Maltese financial services authority (MFSA) to the European Central Bank (ECB) to withdraw the licence of the Maltese bank Pilatus, which has been caught up in a money laundering scandal (see EUROPE 12053), is an “appropriate step”. This emerges from two letters dated 24 September to the members of the European Parliament and Tiina Astola of the Directorate General for Justice of the European Commission.
The EPA considers that the application is justified due to the current situation of the beneficial owner of the bank, Ali Sadr Hashemi Nejad, who has been charged in the United States and accused of organising the transfer of $115 million from Venezuela to Iran via Switzerland and Turkey, in breach of American sanctions.
It also points out that its preliminary investigations raised major concerns regarding the MFSA's supervisory practices, but revealed no breaches of EU law.
Readers may recall that in July, the EBA concluded that the Maltese Financial Intelligence and Analysis Unit had itself breached EU supervisory law (see EUROPE 12061) in this case.
However, the EBA recommends several improvements for the MFSA to make to its supervisory system and will carry out a further on-site inspection in mid-2019, to assess the progress made in their implementation. (Original version in French by Marion Fontana)