The Central Bank has suspended with immediate effect the participation of Satabank plc in Target2-Malta.

The statement issued today made reference to the public notice issued by the Malta Financial Services Authority (MFSA) on 20 October 2018 with respect to Satabank plc.

Satabank plc has been directed by the Malta Financial Services Authority to refrain, cease and desist from taking further deposits into the accounts of its current customers.

The bank has also been directed to refrain, cease and desist from accepting any new customers, affecting or processing any withdrawal or outward transfers from any accounts it held and from effecting any transfer, sale, placement or any other movements of its or its customers’ assets.

It has also been ordered to retain and preserve all records, data and documents relating to its business and its clients, including those on its IT systems and networks whether in Malta or in any other jurisdiction, as well as any other documentation which related to its business in any way.

It has been requested to ensure that all such records, data and documents were kept safe and not altered, destroyed, erased, concealed or disposed of in any manner and that these were accessible at any time to the authority and/or any person appointed by the authority in terms of law.

The MFSA has also asked Ernst & Young, as competent person' to take charge of the bank’s assets for the purpose of safeguarding the interests of depositors and to assume control of the bank’s business.

Following the decision taken by the MFSA to scale up the appointment of the Competent Person, in terms of Article 29(1) (c) and (d), to take charge of the assets and assume control of the business of this bank, as the competent authority may direct, the Central Bank of Malta has decided to suspend with immediate effect the participation of Satabankplc in TARGET2-Malta. 

Satabankplc is a small international bank and these measures will have minimal impact on the domestic economy, the Central Bank said.