Auditor Chris Baldacchino was denied bail on Monday after being arraigned over charges of money laundering.

Baldacchino and his two companies pleaded not guilty to the charges, which alleged that he was the brains behind the laundering of money for an organised crime group connected to fuel smuggling.

Magistrate Ian Farrugia denied the bail request on the basis of the seriousness of the charges and on the fact that a number of witnesses were still to testify.

His and his family’s assets were also frozen, and he was only allowed access to €13,000 for daily needs – as is standard practice in such cases.

Inspector Omar Caruana from the Financial Crime Investigation Department testified that investigations into Baldacchino had started in April 2020, and that the accused was arrested last November and was subsequently interrogated multiple times.

The prosecution, led by lawyer Antoine Agius Bonnici, said that the case involves a number of people and large amounts of money from illicit activity, and that there are several civilian witnesses who are still to testify.

Agius Bonnici said that Baldacchino had been acting as an auditor, meaning that he had an obligation to stop money laundering – something did the opposite of, as he was allegedly the mastermind behind the opening of companies and the recycling of corporate directors.

Baldacchino’s firm Chris Baldacchino & Associates was fined €58,000 by the FIAU last October over sub-standard money laundering controls.

The firm is alleged to have been involved in a €30 million fuel smuggling ring out of Libya which was allegedly operated by former footballer Darren Debono.  Ten people were arrested in connection with this ring last year.

Photo: Giuseppe Attard