Judge finds no rights breach in case over Malta's cash control regulations

A court has dismissed a constitutional case claiming that Malta’s Cash Control Regulations punished offenders disproportionately. The case was filed by a man who had failed to declare the €160,000 in cash that he tried to take with him on a flight to Istanbul.

Businessman Ali Muuse Igaale from Somalia, but who also holds Sudanese and Maltese passports, had been arrested at the airport in August 2021, after a sniffer dog indicated that something illegal was in his luggage, leading to the discovery of the undeclared cash in his suitcase. He was charged with tax evasion and breaching Malta’s Cash Control Regulations.

Those regulations require that travellers declare all amounts of cash over €10,000 to customs upon arrival or departure from Malta. Failure to do so will result in the confiscation of the amounts in excess of €10,000, as well as a fine equivalent to 25% of the total amount of undeclared cash being carried.  He was condemned to pay a total fine of €85,601.40.

In filing the constitutional case, Igaale’s lawyers argued that this punishment constituted a breach of the European Convention on Human Rights and the constitution of Malta, describing it as disproportionate, arbitrary and because it left the courts with no leeway to exercise their discretion when handing down punishment. 

Furthermore, no evidence had been submitted that showed the money had originated from illegal activity, said the lawyers.

But in his decision to dismiss the man’s claim, Mr. Justice Ian Spiteri Bailey noted that the plaintiff had provided the court with absolutely no evidence of the fundamental rights breach that he was alleging, nor of any facts which could have supported a mitigated punishment, in circumstances where the judge would have discretion.

The court said it was comfortable in concluding that the acts of the case showed that the plaintiff had been well aware of the punishment that would be inflicted, before he freely decided to plead guilty. It noted that Igaale had also confirmed his admission of guilt even after the court had clearly explained the fine that he would face as a result.

It also emerged that Igaale had been assisted by a lawyer and an interpreter at the time he entered the plea, observed the court, saying that it had no doubt that the defendant knew full well what punishment his admission would lead to. Neither had the defence made any submissions on the punishment or expressed any reservations about it before the court of Magistrates.

“Therefore, the court concludes that the punishment meted out to Ali Muuse Igaale can be said to have also been his choice, in the sense that he had freely chosen to admit the charges and consequently be punished with that fine.”

Lawyers Franco Debono, Arthur Azzopardi, Francesca Zarb and Jacob Magri assisted Igaale. Lawyers Julian Farrugia and Rachel Aquilina assisted the police.