Partit Demokratiku this morning called on the Malta Financial Services Authority to “act swiftly” following the arrest in the United States of the Pilatus Bank chairman.

Partit Demokratiku noted with deep concern, the recent news that an indictment was unsealed by US, thus charging bank chairperson Pilatus Bank Ali Sadr Hashemi Nejad in alleged involvement in committing money laundering and bank fraud. 

The arrest may prove to be a serious threat to Malta’s reputation as a financial centre. PD urges MFSA to act swiftly with all the appropriate measures so that Malta’s credibility is not tainted.

From publicly available information, Pilatus Bank does not yet appear to be directly implicated, PD said. We do note however that the transactions were made via Switzerland and Pilatus Bank's holding company is domiciled there. We also note that the risk of involvement is indeed present given the past deficiencies of the bank and that its chairperson is Ali Sadr Hashemi Nejad.

MFSA as an independent authority has the power to act even on the basis of this international arrest and to unilaterally perform on-site inspections which can lead to suspension of its license. Article 16 of the MFSA Act outlines a plethora of broad powers in this regard.

Furthermore, PD is concerned that it is evident that proper due diligence was not conducted by MFSA when a licence was given to Pilatus Bank. This also means that the FIAU reports which were leaked should be given more weight.

We ask whether the government will now pursue whistleblower Maria Efimova's extradition from Greece given this news gives more credence to her allegations and those of Daphne Caruana Galizia

One notes that the people of Malta are being made to wait on the actions of other law-abiding citizens in other states to root out corruption that has been planted in our streets, PD said.