Finance Minister Edward Scicluna has jumped to defend the embattled Financial Investigations Audit Office (FIAU), telling journalists that the body would give a strong legal reply to the European Banking Authority’s damning conclusions into the conduct of the FIAU and its investigations into Pilatus Bank.

The Minister was also steadfast insisting that he would not “make anyone shoulder political responsibility” for the report, including himself.

Following its investigation which began on 23 May, the European Banking Authority (EBA) found “general and systematic shortcomings" in the FIAU’s application of anti-money laundering directives with regard to the infamous bank. According to leaked FIAU reports, the bank 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.

The same report also found that the FIAU itself had breached anti-money laundering directives.

“The FIAU gave a reply on the first letter from the EBA. Now that the decision has come out it has the chance to answer and to see whether it agrees with the EBA’s conclusions [The FIAU has 10 days since the publication]. We must leave the FIAU to decided what road it wishes to take.

“I understand that the FIAU does not agree with their conclusions and I imagine that will give a strong legal reply which shows that the FIAU has not broken any European directives,” he said stressing that he would not go into the merits of the particular case of Pilatus Bank.

“The EBA and FIAU had already come to an understanding that an action plan will be implemented before the decision was published,” Scicluna continued.

Asked whether this, along with the FIAU ‘disappointment’ with the report, was an adequate reaction given the severity of the damning conclusions, especially considering the importance of the financial services sector to the Maltese economy, Scicluna said that it looked like “[journalists] had not read the report”.

Pushed to explain himself and whether he was denying that the EBA did say that it found “general and systematic shortcomings" in the FIAU and that it has breached anti-money laundering directives, Scicluna merely ignored the questions and turned to a One News journalist to field a safe question concerning the event he was attending.

Pressed further on the issue surrounding Pilatus Bank, given that leaked FIAU reports showed that the bank was 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, Scicluna said that the case is already in front of a magistrate.

“It is taking many many months, however, the case brought against Pilatus Bank Chairman Ali Sadr Hashemi Nejad [indicted in the United States in relation to allegations to a number of financial crimes] took five years to come to fruition.”

Reminded that the cases were only brought before the magistrate after a whistleblower leaked the reports, Scicluna said that the leak was “a work in progress”.

“If you want to be judge jury and executioner go ahead,” he said.

Scicluna was then asked to further comment on his previous statement that the FIAU reports had been written to be leaked.

“If a serious whistleblower wanted to leak the reports for valid reasons, the persons would have gone to the magistrate and not to the Leader of the Opposition. Given that it was close to an election, I doubt the so-called whistleblower’s intentions,” he said.

When told that the whistleblower may not have gone to the magistrate due to the police inaction on the initial reports, Scicluna quickly deflected saying that “there are many issues at play.”

“I am just dealing with the EBA. The EBA was asked by the commission to look into the FIAU. I am not defending Pilatus Bank. I am defending the FIAU which has grown over the years. I have seen them take action and conduct two national assessment. They are serious people and all of this is very unfair.”

Scicluna then abruptly ended questions and ran off into the crowd, only to tell journalists that they were being rude for approaching him, stressing that “would only resign if [he] was caught betraying the country, and not working for the country as I am doing.”

Footage: Net News