Greens MEP Sven Giegold has told HSBC Bank to close its business in Malta if the country does not do more “to confront the scourge of money-laundering”. the UK based newspaper The Telegraph reports.
He said that if he does not see a change in attitude backed by proper action in Malta, he will launch a campaign calling on HSBC to quit the island.
Giegold was a member of the European Parliament’s committee of enquiry into money laundering and tax evasion.
He spoke with the Telegraph after coming to Malta as part of an EU Parliamentary delegation. He said that the meetings with the MFSA were ridiculous, as "despite all the supervisory failures of recent years they didn't say they would change direction." He sais they were very defensive, defending their approach instead of announcing a stricer regulatory approach.
Malta has been under fire over its financial services industry, as well as the strength of its institutions ever since the Panama Papers were released, where Maltese Minister Konrad Mizzi and OPM Chief of Staff Keith Schembri were found to have companies in Panama. In addition, seperate questions regarding Malta’s anti-money laundering enforcement and the whole Pilatus Bank saga continued to raise serious eyebrows in Brussels, putting Malta in the spotlight and damaging the country’s reputation.
A number of MEPs, including Giegold, have been critical of the police and enforcement authorities on the island.
Recently in a letter written to MEPs, the European Banking Authority Chairman Andrea Enria said, among other things: "The EBA's preliminary enquiries have raised significant concerns concerning the MFSA's authorisation and supervisory practices in relation to Pilatus Bank. However, in the light of the requirements set out in Union law for prudential supervisors which make it difficult to conclude that there have been breaches of clear and unconditional obligations established in Union law, and especially in light of the significant supervisory actions taken by the MFSA in relation to Pilatus Bank, I have decided to close the case without opening a breach of Union law investigation."
Giegold has been a target for the Labour Party because of his involvement in Maltese issues, but this time even Nationalist representatives did not like what he said.
PN MP Hermann Schiavone, in a Facebook post, told the German MEP: “Hands off my country, I will forever defend Malta, its people and its businesses. F... Off”.
Other politicians have also joined the fray against Giegold, saying that Malta should do more to tackle money laundering issues but HSBC should stay.
Alternattiva Demokratika chairperson Carmel Cacopardo insisted Geigold’s intention to fight money laundering may be good but his method was “an exaggeration”. AD forms part of the Greens group to which Giegold belongs.
“I completely disagree with what he said. By targeting HSBC he is being unfair to the whole country when the fight against money laundering should be taken to the authorities,” Cacopardo told MaltaToday.
Also speaking to MaltaToday, PN MEP Roberta Metsola said that she "completely and categorically disagreed with what Sven Giegold has said.”
"If he thinks that action against money laundering and corruption means going after HSBC's legitimate operations in Malta he is grossly mistaken. All he will achieve is recklessly worrying the hundreds of hardworking, honest people at HSBC in Malta. It is scaremongering," she added.
PL MEP Marlene Mizzi issued her own statement. "It has been reported that you will be lobbying with HSBC to withdraw their operations from Malta. If this reportage is correct, you have crossed the line of correctness and decency. You have been hounding Malta for the past years. In fact it seems that Malta has become an obsession with you. You have visited my country as a "fact finding" purpose, even though you had decided and expressed your opinion "a priori". In the end all you have produced is talk and more talk. Nothing substantial ! This is lack of professionalism and integrity at its very best while abusing of your status as an MEP. However, that is the problem of your constituents not mine, not ours."
"What concerns me as Maltese citizen, is your keenness to damage Malta hiding behind the pretence of fighting money laundering. You are now crossing a line, where, without tangible proof, you are threatening to lobby for one Malta's major banks from withdraw from the country because, according to you, our financial system engages in lax money laundering practices. It seems irrelevant to you that this would endanger the jobs of hundreds of people working with this Bank, and jeopardise the prospects of investors and shareholders. This is not acceptable and, frankly, you should be ashamed of abusing your position as an MEP for this purpose," Mizzi said.
"You seem very keen on pointing fingers at Malta and its financial regulations, while ignoring the fact that Malta's financial system has been declared robust, and has been given a clean bill of health from international financial agencies and institutions. Therefore, I find your tenacity to damage my country as highly suspicious and goes beyond a holier - than - thou keenness to fight money laundering."
"Having said so, if you have tangible proof of any wrongdoing within our financial service sector - which entices you to lobby for a Bank withdraw from our country - then you should put your money where your mouth is, indeed you are obliged, to report the matter to an authority you see fit for action so that action is taken against the wrong doers."
"If not, I would suggest you refrain from these threats and bravado in your endeavours to damage a country you are obsessed with. I am sure there are many other problems and scandals in your own country, which you should be addressing as its elected representative, rather than completely focusing your energies on damaging another member state. So, as they say, put up or shut up!"
PN reaction
The Nationalist Party has condemned Giegold's "irresponsible" threat to campaign for HSBC to end its operations in Malta
In a statement signed by PN MPs Mario de Marco and Kirsty Debono, said Giegold is right in saying that the European Banking Authority's report shed light on serious irregularities in the FIAU and MFSA systems. However, the PN said, Giegold should not blame the private sector, and his action was "an act of irresponsibility" to put pressure on a private financial institution.
"The PN stands with HSBC and its 1400 employees in Malta who work with the utmost diligence and professionalism to ensure Maltese and European regulations are fully applied," it said.
