ECB orders Pilatus Bank to shut down after money laundering scandal
06 Nov 2018

The European Central Bank (ECB) has withdrawn Maltese-based Pilatus Bank’s licence following allegations of money laundering and the arrest of its owner over financial crime charges in the US.

The money laundering allegations around Pilatus, which was central to a scandal investigated by murdered journalist Daphne Caruana Galizia, go back almost two years.

In March this year, the US Department of Justice issued an indictment on the bank’s owner Ali Sadr Hashemi Nejad, accusing him of violating sanctions involving transactions worth over $115 million. Sadr denies the allegations.

Following the developments, Malta’s Financial Services Authority (MFSA) recommended the ECB withdraw Pilatus licence.

In an emailed statement on Monday, the ECB said: “Following a request by the Maltese authorities, we have withdrawn the authorisation of Pilatus Bank as a credit institution on 2 November.

“ECB Banking Supervision does not have the legal powers to supervise and enforce anti-money laundering legislation. This is a national responsibility. If requested by national authorities, the ECB can withdraw a banking licence on grounds of money laundering.”

The MFSA also published a statement confirming this.

Efforts to obtain a comment from Pilatus were unsuccessful.

Irene Madongo

Read more:

UK report says banks could share money laundering checks on customers

Ex-Swiss Banker jailed for billion-dollar global money laundering scheme

Money laundering: ING bank fined €775m over due diligence, client on-boarding

Danske Bank investigation: Employees implicated in $234 billion money laundering scandal

Advance your CPD minutes for this content, by signing up and using the CPD Wallet


You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.