trending Market Intelligence /marketintelligence/en/news-insights/trending/rlortzajn9hkzy7ghhng0q2 content esgSubNav
In This List

EBA probes Maltese financial intelligence agency over Pilatus Bank

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


EBA probes Maltese financial intelligence agency over Pilatus Bank

The European Banking Authority has launched a formal investigation into Malta's Financial Intelligence Analysis Unit, or FIAU, over how it imposed anti-money laundering regulations at troubled lender Pilatus Bank.

In a letter to the European Commission, EBA Chair Andrea Enria said he has opened a "breach of union law" investigation into the FIAU, which "appears to have failed to ensure that [Pilatus Bank] put in place adequate and appropriate" anti-money laundering policies and procedures.

"The FIAU neither imposed effective, proportionate and dissuasive sanctions nor any other supervisory measures to correct the shortcomings it had identified to ensure the institution's compliance with [the regulations]," Enria added.

The new probe follows a November 2017 preliminary inquiry into the agency after the EU parliament questioned how Pilatus Bank secured a license, Reuters noted. The initial inquiry reportedly revealed that the FIAU's inquiry and supervision into Pilatus Bank did not meet EU anti-money laundering requirements.

Pilatus Bank has been embroiled in a corruption and money-laundering scandal in recent months after its Iranian owner was indicted by U.S. authorities for alleged money laundering. The Malta Financial Services Authority, or MFSA, took control of the bank a day after its owner's arrest.

The EBA aims to conclude its investigation and reach conclusions by mid-July.

Enria also wrote a letter to the MFSA to get more information on how the MFSA and FIAU coordinate, on prudential supervision and interventions regarding authorization and on the internal controls and business model of Pilatus Bank. The MFSA has until June 10 to respond to the EBA's inquiries.