MEPs forming part of an ad-hoc rule of law delegation have written to the president of the European Central Bank, Mario Draghi, requesting the revocation of Pilatus Bank’s licence.

Bank chairman and owner Sayed Ali Sadr Hasheminejad was arrested in the United States last week on charges that he evaded US economic sanctions and money laundering.

“MEPs have requested ECB intervention in terms of Article 81 (1) of the Single Supervisory Mechanism Regulation that empowers the ECB to revoke a banking license,” the European People’s Party (EPP) said in a statement. The MEPs provided a detailed explanation of the legal grounds on which they based their request.

MEP David Casa stated: “The arrest of Hasheminejad did not occur in a vacuum. In fact it is no surprise at all. Pilatus Bank has been at the centre of alleged corruption and money laundering connected to the Office of the Maltese Prime Minister ever since it was set-up in 2014. This has been known to the authorities since at least early 2016 and the information has been in the public domain for well over a year”.

The MEPs noted that the measures taken by the MFSA have so far not included the withdrawal of the authorisation for the bank to operate.

In the letter sent to ECB President Mario Draghi the members of ad-hoc delegation on the rule of law stated: “We regret that, after months of warnings and allegations on the integrity and compliance of Pilatus Bank’s activities with Union law, dating back to reports and investigations of the murdered journalist Daphne Caruana Galizia, no visible action was taken by either Maltese or European supervisory or law enforcement bodies to ensure the integrity of the EU financial system”

David Casa stated: “The continued operation of Pilatus Bank - in any capacity - risks the continuation of criminal activity. The bank must be closed down once and for all”.