Malta Today on 8th June reported on the launch of the European Banking Authority investigation.  In a letter sent to MEPs, EBA chairperson Andrea Enria said that the EBA had decided to open a “formal Breach of Union Law Investigation in relation to the FIAU”.  According to the EBA, the investigation is based on the following preliminary assessment:

  1. The manner in which the FIAU conducted its investigation and planned its supervisory activities in relation to Pilatus Bank, which it described as a high-risk institution that did not appear to have taken adequate steps in ensuring compliance with the 3rd Anti-money laundering directive, in particular the obligation for competent authorities to carry out effective monitoring.
  2. The observation that the FIAU appeared to have failed to ensure that Pilatus Bank it put in place adequate and appropriate anti-money laundering and countering the financing of terrorism (AML/CFT) policies and procedures.
  3. That the FIAU “never imposed effective, proportionate and dissuasive sanctions nor any other supervisory measures to correct the shortcomings it had identified” to ensure the bank’s compliance.

Based on these observations, the EBA said, it appeared that the FIAU had breached Articles 37 and 39 of the 3rd AML Directive.  The article has a link to the letter.  It also quotes the FIAU as saying that it “reiterated” its strong commitment to co-operating fully with the EBA, “in order to facilitate understanding of the facts of the Pilatus case and the steps taken to date”.

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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