PN MEP David Casa has called on the European Central Bank's (ECB) Supervisory Board to intervene in the case of Malta-based Pilatus Bank, a statement has read.

"Casa resorted to seeking ECB intervention after his calls on Malta's National Supervisory Authority, the MFSA, to act, proved futile."

Pilatus Bank was the at centre of controversy and scandal in the run-up to the 2017 elections. "The bank was the subject of extensive investigative reporting by journalist Daphne Caruana Galizia."

MEP David Casa stated: "Leaked reports from Malta's Anti-Money Laundering Agency (the 'FIAU') revealed Pilatus Bank's clients to be, almost exclusively, Politically Exposed Persons from Azerbaijan. Bank accounts held by Pilatus Bank were also used to launder the proceeds from illegal kickbacks to the Maltese Prime Minister's Chief of Staff, Keith Schembri from the sale of Maltese passports."

"In another FIAU investigation it was revealed that payoffs by Keith Schembri to Adrian Hillman, the former Managing Director at The Times of Malta, were also laundered through Pilatus Bank accounts. In another case, Cheng Chen, an Accenture Strategy employee who negotiated on behalf of China's state-owned Shanghai Electric to buy Malta's power station and a large stake in Malta's state electricity company, Enemalta, was also revealed by Daphne Caruana Galizia's 'Panama Papers' reporting to have an offshore company with an account at Pilatus Bank. Extracts from another FIAU investigation report later revealed Chen Cheng expected to receive a EUR 1 million payoff from the deal into his Pilatus Bank account," Casa stated in his statement.

"The evidence is overwhelming and in many cases conclusive. The anti-money laundering violations by the bank, as uncovered by the FIAU, are shown to be so extensive that they likely form the basis of the bank's business model. The fact that the evidence directly links the Office of the Prime Minister of Malta to Pilatus Bank suggests this money-laundering outfit will continue to operate within the European Union with impunity unless the ECB uses the legal powers it has at its disposal to intervene."

"Pilatus Bank also features extensively in the European Parliament's recent resolution on the rule of law in Malta. It is outrageous that this Bank continues to hold a license to operate in the European Union. While I am fully aware that there is no precedent, I maintain that due to the gravity of the situation the ECB's Supervisory Board set up under the Single Supervisory Mechanism has a duty to intervene. I have requested the revocation of Pilatus Bank's license."

"I am informed that the ECB has received my letter as well as the relevant FIAU reports and that they have been circulated to the relevant units."

In a statement later in the day, the PN said it fully backs the initiative taken by MEP Casa. 

PL statement

The PL later in the day, released a statement. “The PN’s support of PN MEP David Casa’s actions is another desperate attempt by PN Leader Adrian Delia, who is trying everything to bring the former leader’s group closer to him. This, in a week where this same group did not back him in Parliament.”

 “Casa’s actions, attempting to continue dirtying Malta’s name by repeating allegations without evidence is no surprise. This was the only aim of Casa and the rest of their delegation in the European Parliament.”

 “While institutions should be at liberty to conduct their work freely and independently, one notes that the only step recently taken by the ECB against a local company was one which had former PN Prime Minister Lawrence Gonzi as a director. Where was Casa and Delia in that case?”