PD calls for a ‘holistic sector approach’ in dealing with local financial services

The Democratic Party has said that, in the interest of the country’s reputation, the authorities should show that they have ‘both the teeth and the willingness to curb illicit entities’.

The recent indictment of Ali Sadr Hasheminejad shows that Pilatus Bank’s lack of reputation could tarnish the country’s reputation in the financial services, the party said.

PD have raised a number of concerns on the way the Malta Financial Services Authority dealt with measures imposed on Pilatus Bank, and has questioned why the measures were not more "aggressive and timely".

Earlier this week, the MFSA removed Hasheminejad as Pilatus' chairman, deeming him not 'fit and proper' according to the law. It also revoked his and all the other directors’ voting rights and their ability to move assets, and later appointed Lawrence Connell to take charge of all the bank's assets. 

The regulatory failure, PD said, will have a snowball effect on other thriving financial services, such as the gaming and construction industry.

“If we really want our financial services sector to remain an international centre and one of good repute, we cannot remain insular and short sighted,” the PD said, highlighting that good governance called for a "holistic based approach".

The PD acknowledged the success achieved in the financial sector, but said that to ensure this was long-lasting, the authorities must impose effective regulation and supervision.

“It is a fact that Malta is business friendly to this sector and moreover benefits from a favourable tax system, and other advantages, but these operators must be made to comply, or else they should be sanctioned with timely, effective measures,” it added.