The Malta Gaming Authority (MGA) said that they are in contact with licensees that hold bank accounts with Satabank to ensure that they are taking the necessary steps to set up alternatives for continued operation in accordance with the law. 

Sources close to the MFSA recently told this newsroom that the companies are insisting with the MFSA that since other local banks do not accept iGaming companies as clients, a replacement for Satabank's services was essential in order for them to continue operating.

But the MFSA had told Satabank customers that, "if they not have an alternative account (with a credit or payment institution) in an EU/EEA jurisdiction, they are encouraged to set one up as soon as possible".

In light of the situation The Malta Independent asked the MGA what will happen if the companies do not have a bank to bank with; what the MGA is doing with regards to companies which held accounts with Satabank, and are now facing problems; and to provide their input on the situation.

The MGA, in response, said that they are "in contact with licensees having accounts at Satabank".

They also stated that they are "in close contact with the MFSA and the Authority is monitoring the situation and ensuring that player funds held therein are safeguarded. We are also in contact with licensees having bank accounts at Satabank to ensure that they are taking the necessary steps to set up alternatives for continued operation in accordance with the law."

iGaming companies losing clients is of concern considering the importance of the sector to the Maltese economy. According to recent figures, the iGaming sector contributes €1.2 billion to the Maltese economy, equivalent to 12 per cent of the country's gross domestic product.

The Ernest & Young (EY) auditing firm earlier this month was appointed by the MFSA as the competent body to advise and monitor Satabank in the proper conduct of business. This measure was taken after a joint inspection by MFSA and the Financial Intelligence Analysis Unit found a number of shortcomings in the bank's anti-money laundering procedures.

iGaming clients who spoke to this newsroom said that after this incident they fear their businesses are on the verge of closing down since they can't access or move their funds, or manage their own assets.

In a previous statement, Satabank said that the MFSA had "initiated a controlled process for the return of Satabank customer deposits over a period of time", and that "there remains no access for customers to submit transactions, make withdrawals or close accounts".

"Further details of the process will be made available as they are finalised by the authorities. Where customers have an account with a credit or payment institution in an EU/EEA jurisdiction Satabank would advise that they transfer their banking arrangements to this institution.  Where customers do not have an account with such a jurisdiction the bank encourages them to open one in the same name as their existing account at Satabank.

"Satabank customers now have read only access to view their online account balances."