Financial services watchdog fines and orders Dalligate witness to cease business operations

A witness in the John Dalli snus scandal, Iosif Galea, has been fined €53,333 by the Malta Financial Services Authority and ordered to cease business activity.

Galea, a former official at the Malta Gaming Authority, describes himself on Linked-In as a compliance officer of a number of Malta-licensed online gaming companies.

In a decision posted this week on the MFSA website, the authority said it imposed the fine and ordered Galea to stop acting as a company services provider after several breaches in his operations.

The MFSA also found that Galea was performing “unauthorised business activity” and failed to provide information requested by the authority.

“The Authority has decided to direct Mr Galea… to cease the provision of any services which require prior authorisation or registration from the MFSA, including the provision of CSP services as defined under the applicable law,” the MFSA said.

There is no indication that the MFSA’s action has anything to do with the Dalligate scandal.

Galea had been a key witness in the case against former European Commissioner John Dalli’s top aide Silvio Zammit.

Zammit has been facing criminal proceedings since 2012 over his alleged request for a €60 million bribe from snus manufacturer Swedish Match and the European Smokeless Tobacco Council, a lobby group, to help lift a ban on the chewable tobacco.

At the time, Dalli was EU Health Commissioner and was forced to resign after the European Anti-Fraud Agency, OLAF, claimed he was aware that his name was being used by Zammit.

Dalli has always insisted he never discussed money with Zammit and denied any wrongdoing.

Last week, the police instituted criminal action against Dalli, although the case is stalled until the prosecution determines whether the former politician enjoys diplomatic immunity.