MFSA appoints auditors to monitor Satabank ‘in proper conduct of business’

The Malta Financial Services Authority has appointed Ernst and Young Ltd (EY) as a competent person to advise and monitor the bank Satabank in the proper conduct of its business.

The measure has been taken in order to ensure good governance and controls, as well as the implementation of remedial measures in line with the MFSA’s supervisory requirements as mandated by law.

The bank, however, continues to meet its financial prudential requirements, and the regulatory measure will remain in force until such time as the MFSA shall otherwise direct. It will be without prejudice to any further regulatory action. 

The Central Bank said Satabank was a small international bank, with minimal links to the Maltese domestic economy, and that the appointment of EY demonstrated the authorities' determination to protect and uphold the good governance of the financial system.

Satabank was his with a €60,500 fine in July after it was found to be in breach of risk management laws. The bank faced an examination of its compliance with anti-money laundering and terrorist financing laws after an FIAU and MFSA inspection of its client files.

Prior to the bank gaining its licence in Malta, Satabank’s Bulgarian co-owner Christo Georgiev ran an e-money business in Luxembourg. The group the bank forms part of voluntarily surrendered its electronic money institution licence issued by Luxembourg, after Satabank was given its licence in Malta.

The bank was named by a Sicilian prosecutor last year as having been used by fuel trader Gordon Debono to receive illicit payments through his Maltese company, Petroplus Ltd, as part of an alleged €30 million fuel smuggling ring.