Finance Minister Edward Scicluna yesterday expressed his trust in FIAU personnel, stating that he does not believe they would wilfully do anything wrong.
EU Commissioner for Justice Vera Jourova had indicated that if the European Banking Authority (EBA) finds systematic deficiencies with the FIAU, infringement proceedings could be launched. The EBA is investigating the Financial Intelligence Analysis Unit's supervision of Pilatus Bank, as it appeared that the FIAU might have failed to ensure Pilatus put in place adequate anti-money laundering procedures, and never imposed any sanctions on the bank.
Asked what kind of action he would take if issues are found in the way the Pilatus case was handled, he said that there would be an infringement. “We are strengthening the institutions on a continuous basis, and as part of the plan and strategy we are going more deeply into it now with the consultants, the coordinating committee and the permanent unit. Things will come up as to how we can strengthen all institutions, including the FIAU. But I do not believe that the people at the FIAU would wilfully do something wrong.”
“On examining any institution one will always find certain things which one feels are weak. That is why everyone talks about reform and the strengthening of institutions. I can’t get involved in the case at the moment, but that they will say that it’s worth looking further into something is very subjective, depending on who makes the judgement.”
“Speaking broadly for the FIAU, the MFSA and even possibly the Central Bank, one has to examine the institution over all the cases involved and not just a particular case, or at least looking at a particular case in the context of all the decisions they’ve taken.”
Asked who would take responsibility should the EBA look into the FIAU in a wider scope and find systemic issues, not just on the Pilatus case, he said “you’re speculating on something which I don’t believe will happen. I trust the people there, and they would not do something wilfully wrong. However if it’s the systems, we will review or look at, but as far as people are concerned I don’t think this will come up. Again this is speculation before the event. We would rather wait and see.”
On a separate issue, this newsroom asked the minister whether an outcome from the investigation by the FIAU and the MFSA into Satabank has been reached yet, after the Times of Malta reported that there is an examination of its compliance with anti-money laundering and terrorist financing regulations. The minister said “not that I know of. But it’s part of their work, that each bank is always monitored and supervised, that questions are asked, that some issues could be more serious than others, and so it is in the nature of our economic activity since we have such a large financial services sector (that cases are investigated). In fact we are criticised that we are not showing enough cases being charged when compared to the size of our economic activity.”
“I am not saying that it is normal to hear of such cases, however one would expect that cases come forward, and that shows that the regulator is doing its job.”