EU Considering Action Against Malta If BOV Fails To Respond To ECB Investigation Findings

Earlier publications of this article stated that the deadline for Malta’s response was tomorrow, Friday December 6th. This has since been amended with the correct date, January 6th.

Malta has until January 6th to provide an explanation of the measures taken by Bank of Valletta in response to allegations of suspicious proceeds that emerged from investigations run by the European Central Bank.

According to Times of Malta, the European Commission is considering infringement procedures against Malta should the government fail to provide a satisfactory response from the country’s largest bank.

The ECB raised suspicion after proceeds from the controversial cash-for-passports scheme were recently brought under scrutiny.

Tiina Astola, the European Commission’s director-general for justice, has asked the government to act on the findings of the ECB after conducting a thorough investigation earlier this year.

The cash-for-passport scheme was introduced by the government in 2014 and has been in and out of news cycles after links to corruption and money laundering were reported by various media houses both locally and internationally.

If Malta is to avoid the possibility of a formal infringement from the Commission, a response must by January 6th.

The ECB recently said that BOV had failed to deal with a litany of risk management shortcomings, despite warnings sent in 2015.