Home Affairs Minister Michael Farrugia has defended the decision not to have Pilatus bank sealed off by police, after the arrest of the bank’s former Chairman Ali Sadr Hashemi Nejad
On Tuesday Ali Sadr was arrested in the USA on charges that he evaded USA’s economic sanctions against Iran by sending more than $115 million from Venezuela through U.S. banks. Prosecutors said Tuesday that Ali Sadr Hashemi Nejad (Chairman of Pilatus Bank) created front companies and foreign bank accounts to mask his dealings with Iranian businesses in Venezuela. If convicted, Sadr could face a sentence of up to 125 years in prison.
The Malta Financial Services Authority’s (MFSA) Supervisory Council decided on Wednesday, to remove Ali Sadr from any position he holds at Pilatus Bank, but refrained from revoking the banking licence of the company. It has also been ordered not to transact any business whatsoever irrespective of the client or the counterparty. The same applies to all deposits and withdrawals and any disposal of the bank’s assets.
The MFSA had also directed Pilatus Bank Limited not to allow any banking transactions, including withdrawals or deposits held with the Bank by the shareholder, members of the Board of Directors and Senior Management officials of the Bank, or any connected persons or related persons thereto, whether direct or indirect, and any other clients.
The Malta Independent asked Home Affairs Minister Michael Farrugia yesterday, after questions were raised regarding the bank not being sealed off, why the police did not seal off Pilatus Bank given that there could potentially be some evidence which the US authorities might require inside.
“The MFSA had to take a number of decisions. The MFSA took the decisions they felt necessary at this moment in time. The Malta Police Force made contact with their American counterparts. From their end they did not request any sealing off or anything like that. Whatever happened did not happen in Malta. Pilatus Bank is not, from the information we have, related directly or indirectly to the investigations being carried out in the USA. Any illegality being investigated is basically an American issue,” the minister said.
The minister’s statement however, indicates that he does not believe the bank is related indirectly to the investigation, yet the person being investigated is the Chairman of the bank.
The police said in a statement on Wednesday that it has made contact with United States authorities following the arrest of the bank Chairman, and that “it results that the breach of United States sanctions on Iran allegedly took place several years ago, and no Maltese people, nor foreigners living in Malta or entities stationed here were involved.” The police said that they offered their assistance to the American authorities, and that in the coming weeks, a delegation from the United States is to arrive in Malta for more discussions about the case.
The Malta Independent asked what kind of assistance was offered, to which the minister said that Malta offered any kind of support so that if they want to extend the investigation they can do so.