The European Banking Authority concluded that the Government agency against money laundering, the FIAU, failed to supervise Pilatus Bank among a number of shortcomings including deficiencies in procedures and lack in supervision action by FIAU as Pilatus Bank case was closed without the Agency applying sanctions over the bank.
Having opened a formal investigation into the breach of EU law, the Board of Supervisors concluded that FIAU had infringed the Directive on the prevention of the use of the financial system for money laundering and terrorist financing.
The EBA has issued 8 recommendations to the FIAU, while urging the same agency to take the necessary steps to comply with the anti-money laundering and anti-terrorist financing.
In October, the European Commission, asked the authority to investigate possible violations of European law by FIAU and the Malta Financial Services Authority in the case of Pilatus Bank.
The EBA had visited both authorities in Malta. The Authority said, in a statement, that the measures taken by the FIAU were not enough to make up for the shortcomings that have been committed.