Edward Scicluna not fit for purpose after Pilatus Bank findings - PN

Edward Scicluna is not fit to occupy the role of Central Bank of Malta governor after the damning findings on Pilatus Bank, the Nationalist Party says

Central Bank of Malta Governor Edward Scicluna
Central Bank of Malta Governor Edward Scicluna

Edward Scicluna is not fit to be Central Bank of Malta governor, the Nationalist Party said on the morrow that Pilatus Bank was fined over money laundering breaches.

Scicluna was minister responsible for the financial services regulator and defended the now shuttered bank when money laundering risks were flagged more than three years ago, the PN said.

PN spokespersons Mario de Marco and Kristy Debono said the latest findings by the Financial Intelligence and Analysis Unit’ show how Pilatus Bank allowed millions to pass through its systems without carrying out the necessary verifications.

“This confirms that the Labour government not only closed its eyes to money laundering and financial crimes but defended institutions specifically created for this aim,” the PN said.

Scicluna, who was finance minister until November last year, had even criticised the European Commission for “picking on Pilatus Bank because it was a small operation”, the PN said.

“Edward Scicluna as minister responsible for regulating the financial services sector, had ultimate responsibility for the banking system but not only did he not take action but defended until the end an institution intended for criminal purposes,” the PN said.

On Tuesday, the Financial Intelligence and Analysis Unit concluded a three-year-old investigation of Pilatus Bank’s accounts and operations.

Pilatus was fined €5 million for failing to carry out proper due diligence on its clients and allowing hefty transactions to go unchecked.

READ ALSO: Pilatus Bank hit with €5 million penalty by FIAU