U.S. prosecutors believe that Malta-based Pilatus Bank funded itself with criminal proceeds linked to a sanctions-busting scheme involving Venezuela and Iran, the Financial Times reported, citing a new letter filed to a U.S. court.
The U.S. Justice Department indicted Pilatus Bank owner and Chairman Ali Sadr Hasheminejad on March 20 for allegedly organizing a scheme to illegally channel more than $115 million from Venezuela to Iranian-controlled companies through western banks. The lender's assets were subsequently frozen.
In a letter filed by the prosecutors with the U.S. court, it is alleged that Hasheminejad used about €9 million of proceeds directly linked to the project to establish and capitalize the bank in 2013, the FT said.
EU finance ministers are expected to discuss the fallout from the Maltese lender's case at a meeting May 24 and May 25 to discuss banking rules reform, including beefing up the bloc's money-laundering oversight.
