Edward Scicluna Complains To Financial Times: ‘Don’t Judge Malta On Our Small Rogue Element’
Finance minister Edward Scicluna has written to The Financial Times to complain about its recent coverage on Malta’s financial services sector and to urge it not to judge the country based on the activities of “a small rogue element”.
“I do not feel you have depicted our financial services industry either accurately or fairly,” Scicluna wrote. “Malta’s financial services sector is now a major force in our country’s economy and services the needs of a growing range of banks, asset managers and insurance companies. We offer institutions a well-trained and highly motivated workforce, a strong regulatory and governance framework, clear and transparent legislation and rule of law, a low cost-environment and, crucially, access to the single market thanks to our proud membership of the EU.”
“In recent years, every financial centre in the world has had to face significant regulatory and legal issues. There are lawbreakers and fraudsters everywhere, and it would be wrong to single out any one jurisdiction. The issue is how one deals with them.”
Scicluna was responding to a Financial Times article which said the European Commission’s recent proposal to facilitate the sharing of bank account data among member state law enforcement authorities was partially prompted by banking scandals in Latvia and Malta. The Latvian case referred to the ABLV bank, which the European Central Bank forced down after it was found to have helped North Korea breach sanctions and laundered money for clients in Russia, Azerbaijan and Ukraine. The Maltese case referred to the recent arrest in the United States of Pilatus Bank owner Ali Sadr Hashemi Nejad, who has since been charged with money laundering and evading US sanctions.
The Financial Times singled out Malta due to the arrest of Ali Sadr Hashemi Nejad
However, Scicluna argued it is unfair for Malta’s reputation to suffer as a result of Hashemi Nejad’s arrest, noting that the MFSA has since seized control of the bank.
“We are co-operating with international crime agencies and regulators to uncover any potential wrongdoing and take effective action,” he said. “This month I also launched a stringent anti money-laundering and corruption initiative overseen by a permanent National Coordination Committee, designed to strengthen our work in this area. We are deeply committed to preventing, detecting and prosecuting any criminal activity. I ask you and your readers to judge the Maltese financial sector by the dedication of thousands of professionals, and by the work we are doing to build it for the future, rather than the activities of a small rogue element.”
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