The new MFSA Chairman has described German bank Deutsche Bank as a "well-known money laundering channel," during a Parliamentary Committee hearing.
John Mamo said that countries like Germany and Sweden are voicing concerns about Malta, but should note that their slates are not clean.
He was being questioned by MPs on a new Parliamentary Committee set up to vet appointments to government agencies.
He said that Brexit meant Malta was losing a valuable ally, but added that Malta must stand its ground when faced by pressure from EU member states.
"We need to make it clear that we are keeping a clean house," he said, while adding that Malta does not need to be masochistic and do more than the countries attacking do themselves.
He said that Malta also needed to understand that retreat was sometimes the best defence, especially with certain countries like the UK since they can leverage correspondent banks.
As for questions regarding Malta's competitiveness, he said the education system must produce more qualified persons. He emphasised the importance of Malta's quality and reputation.
Mamo said that the blockchain and cryptocurrency sectors are very specialised, and noted that Malta must see to which extent the industry would be allowed to operate abroad.
PN MP Carm Mifsud Bonnici noted concerns regarding Pilatus Bank, and believes that more steps could have been taken.
Mamo said he knew as much as a layman about the case at this stage, but agreed it was a big problem. He couldn't however, say if the MFSA acted correctly or not as he did not know. He did say that there are areas in which operations could improve. He mentioned that the communications department is weak and noted recruitment efforts.