MFSA Clarify How Pilatus Bank Is ‘Winding Down’ In Malta
After the lawyer of Ali Sadr, the chairman of Pilatus Bank, submitted papers to a New York court saying the bank was in the process of ‘winding down’, the Malta Financial Services Authority has clarified that the bank cannot close without the MFSA’s approval.
“The bank remains subject to the regulatory sanctions imposed by the MFSA which have severely limited the bank’s activities. This means that the bank cannot proceed with winding down on its own accord. Any actions related to the bank taken by MFSA will be communicated publicly at the appropriate time,” an MFSA spokesperson told Lovin Malta.
Referring to an MFSA announcement released on the 22nd March, they confirmed Pilatus Bank has been placed under the control of a ‘competent person’ appointed by the MFSA, but made it clear that Pilatus Bank could only wind down with the MFSA’s approval.
Pilatus Bank Chairman Seyed Ali Sadr Hasheminejad
“The representation of the bank is now vested in the competent person and the voting rights of the shareholder in question have been suspended,” they said.
This development comes after the London branch of Pilatus Bank was closed.
Pilatus Bank has been in the spotlight ever since it was alleged that Michelle Muscat, the Prime Minister’s wife, owned the Panama company Egrant through a Pilatus bank account.
It was alleged that $1 million in Azerbaijani money had been sent to that account, and information revealed by the former Pilatus Bank employee Maria Efimova threw further damning light on the bank.
Ali Sadr himself is currently in prison for allegedly violating sanctions and laundering money.
What do you think of this latest development?
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