Five years of chaos -Malta’s infamous Pilatus Bank case

July 12, 2023 at 14:44 PM EDT

One of the most controversial cases in recent Maltese history began five years ago in 2018 with the Pilatus Bank case. Due to its unlawful practices, Pilatus Bank, now a household name in Malta, was stripped from its ability to operate by the Maltese financial authorities and the ECB. Now, the notorious bank case slowly inches its way toward what some call “resolution.” Many say it could take additional years and millions of Euros in tax money until any further advancement, leaving citizens disinterested, unheard, and under-promised.

Five Years of Financial Chaos

The catalyst of this infamous case followed the arrest of Pilatus Bank’s former owner, Ali Sadr Hasheminejad. His arrest prompted a swift reaction from the Malta Financial Services Authority (MFSA) which released a public statement on March 21st, 2018, justifying its actions against Pilatus and Sadr. In its statement, the MFSA declared it “issued an order to remove Mr. Ali Sadr Hasheminejad, with immediate effect, from the position of director of the Bank and any executive roles that he holds within the Bank.”

Additionally, the MFSA declared that it “directed Pilatus Bank Limited not to allow any banking transactions, including withdrawals or deposits held with the Bank by the shareholder, members of the Board of Directors and Senior Management officials of the Bank, or any connected persons or related persons to it, whether direct or indirect.”

The following developments peaked when the European Central Bank (ECB) stripped the Pilatus Bank’s license in November 2018. Revoking the license was a decision made based on the arrest of Pilatus’ former manager. The case against him was closed shortly after his arrest, under the claim that pursuing the case would “not be in the interest of justice” due to the required resources.

The magnitude of the Pilatus Bank investigation conducted by Maltese authorities is extreme, with the shocking emergence of financial data. Based on this singular case, taxpayers must pay the price, which now stands at above 11 million Euros. The economic and reputation-related issues created by the case in the span of five years have cost Malta greatly, including the price of an increased distrust and distaste Maltese citizens have cultivated toward their government.

A serious question arises that the Maltese judicial system must face. Taxpayers, business owners, law-abiding citizens, and foreign government authorities all ask, “Why are Malta’s courts willing to spend a fortune on the Pilatus Bank investigation when a country with so many resources, like the United States, decided the claims against Sadr are not in the interest of justice?”

Growing tired, frustrated Maltese citizens must pursue the fight against Maltese authorities spending astronomical tax amounts on this investigation. Ironically, all this taxpayer money goes toward the long, drawn-out case, which outcome has zero effect on any average citizen’s daily life.

Malta also tries to repair its harshly damaged image provided by the case. Malta has worked tirelessly on marketing itself as an offshore investment powerhouse. Any blow to its reputation in this field could be fatal for its future as an attractive destination for international investors.

As of now, the numbers already dwindle in promise. Foreign direct investment data shows that since 2018, there has been a significant downfall in foreign investment throughout the country. This is the consequential outcome of such an irresponsible case regarding the bank’s illegal actions and the government’s slow demeanor after the fact.

Delay is the New Normal

In January 2023, the Times of Malta publication reported that the proceedings against Pilatus Bank were put off indefinitely. This trend of delaying high-profile cases severely harms the country, given how much is financially and reputationally at stake.

These delays occur because of a lack of preparedness by the prosecution, which is currently struggling to find any submittable evidence to the court in the case against the bank’s former money laundering officer, Claude-Ann Sant Fournier. The prosecution is currently hanging straws at a lead that requires them to find legal assistance in the UK, which postpones the continuation of the trial to an unknown period.

The magistrate for the case even said that she “cannot envisage this case going forward for another six months (Times of Malta).” Given how 97 money laundering cases still await trial today, it is unclear how this high-caliber case can be postponed for an overdrawn period without proposing a clear rationale to overburdened, taxpaying citizens.

Countrywide Internal Wear and Tear

Given Pilatus Bank’s indirect connection to other burning scandals in Malta, the case has received attention from politicians and NGOs alike. Their pursuit of convictions for those involved with the bank has caused a deep rift.

Many people view the “interest” that organizations like Repubblika acquire for this case as damaging to Maltese society and its financial future. But, simultaneously, some struggle to find the value of investment to uncover truths and corruption about the authorities. For many, too much time and boundless resources are required.

These internal differences in opinions often lead to various clashes between citizens on social media, thus contributing to the near collapse of the stability of Malta.

Serious Consequences Call for Help

Unfortunately, cases in the realm of money laundering are notoriously complicated, especially in Malta. Therefore, every case must be handled with extreme caution and professionalism. This is something that remains absent, especially in the Pilatus Bank case.

The problem is that Maltese authorities lack the necessary professionalism to handle the magnitude of such a case. This is not even considering the stack of other cases piling on the attorney general’s desk.

There comes a time when the public is the last hope for influencing officials on current affairs. This case is a prime example. If the public continues to stay silent regarding how cases like this are handled, the government will persist in delaying vital procedures.

Because many Maltese citizens are often exposed to developments and statements surrounding the bank, the most effective form of resistance in Malta has been public pressure through social media. As they play in this game run by biased narratives, Maltese citizens see social media advocacy as one of the limited potential solutions.

It is crucial to steer the current online discourse to encourage further advancements in the case. If this does not happen, the government will surely keep decisions at bay. Therefore, the prominent self-preservation practices of government officials must be stopped immediately.

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Five years of chaos -Malta’s infamous Pilatus Bank case

Five Years of Financial Chaos

Delay is the New Normal

Countrywide Internal Wear and Tear

Serious Consequences Call for Help

More News