Two investment accounts held by former Allied Newspapers managing director Adrian Hillman with MFSP Financial, an investment advisory firm, “were funded solely by [the Prime Minister’s chief of staff] Keith Schembri, or his companies,” an incriminating shows.

The Financial Intelligence Analysis Unit (FIAU) report was investigating possible money laundering stemming from financial transactions made by Mr Schembri to former Allied Newspapers managing director Adrian Hillman.

In its concluding remarks, the report states: “In view of the above circumstances, the information available to the FIAU is deemed to be sufficient to conclude that a reasonable suspicion of money laundering and/or the existence of proceeds of crime subsists.”

One MFSP investment account was held by Mr Hillman personally, while the other was held on behalf of Lester Holdings Group Limited, whose ultimate beneficial owner is Mr Hillman himself. Between both accounts, Mr Hillman received a total of €394,675 and a further US$169,675 from Mr Schembri and his companies.

“On the basis of this review, it is pertinent to note that both investment accounts of Mr Adrian Hillman and Lester Holdings Group Limited held with MFSP Financial were funded solely by Mr Keith Schembri or his companies. Despite these products having been set up in 2010 and 2011 respectively, the transactions which have taken place indicate that these products were also set up with a specific purpose in mind due to the nature of the transactions which were carried out,” the FIAU report reads.

A spotlight on the financial dealings of Mr Schembri and Mr Hillman came to light through the Panama Papers scandal. Millions of documents were leaked from Mossack Fonseca, a Panama-based law firm, which exposed how the firm assisted the world’s elite in setting up complicated financial structures, ordinarily used to conceal one’s wealth.

The leak exposed the financial dealings of Mr Schembri, by extension Mr Hillman, and therefore amplified pressures in the local political scene to ascertain any wrongdoing carried out by the two men.

Dr Busuttil, in the midst of the current electoral campaign, said that people came forward with documentation that is evidence FIAU report of “classic money laundering” through financial transactions made by Mr Schembri to Mr Hillman, among other claims.

The allegation of money laundering was categorically denied by Mr Hillman, stating that all transactions took place prior to 2013, when the PL were elected into power and Mr Schembri was made chief of staff.

The report, however, dedicates an entire section to ‘suspicious transactions’, stating that:

“..the FIAU obtained information indicating that during the period of 1 January 2011 to 29 February 2016, Mr Adrian Hillman deposited a total of €224,511 in cash to his personal bank account held with HSBC Bank Malta plc. The source or purpose of these transactions are not known.”

The report speaks of other ‘suspicious transactions’ which can be found on the TMI news portal www.independent.com.mt.

It was also found that in five years, a total €15,190 had been withdrawn from Mr Hillman’s personal account. The FIAU remarked that the amount “appear[s] to be [a] remarkably low sum especially when taken into consideration with Mr Hillman’s above average salary and lifestyle. The lack of cash withdrawals may indicate the Mr Hillman possibly has access to funds which are not being introduced into the banking system.”

When Opposition leader Simon Busuttil announced that he had received documents detailing transactions that indicate “a classic case of money laundering” with reference to this story, he explained that ‘dirty’ money had been sent by Mr Schembri to Mr Hillman, and were ‘washed clean’ by the latter investing that same money into bonds.

Whether or not this can be confirmed unequivocally would require police investigations, as has been recommended by this report; however, the inclusion of Mr Hillman’s investment accounts in the report do show that he had invested in bonds through the same accounts. It is not unusual for a person of his financial standing to invest in bonds, but the report’s suspicions into the source of funds does lead to cause for speculation.

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