Sunday, April 1, 2018

Pilatus Bank: MFSA says due diligence carried out including ‘external intelligence report’

The Malta Financial Services Authority (MFSA) said that before granting a licence to Pilatus Bank, "it carried out comprehensive due diligence and review of the application documents for many months, including the commissioning of an independent external intelligence report."

The MFSA issued a statement this morning on the exercise of the MFSA's responsibilities with regards to Pilatus Bank to the extent that is permissible by law. The statement gives an account of what the MFSA has done so far, , giving little fresh information following the arrest of the bank's chairman in the United States last month.

It said the statement "reflects MFSA's commitment to ensure that it delivers on its priority to protect the integrity of the banking system without fear or favour in accordance with the powers granted to the authority by the law.

"Following the indictment in the United States of America of Mr Ali Sadr Hasheminejad on 20 March 2018, the MFSA has taken the following actions:  

-          Removed Pilatus Bank's former Chairman (and more recently non-Executive Director) Mr Ali Sadr Hasheminejad from all his positions within the bank, also stripping him of all voting rights as a shareholder;  

-          Taken charge of all assets including those related to the investment services business of the bank and directed the bank to obtain the MFSA's approval prior to effecting any movement of the bank's assets;  

-          Stopped all transactions, including withdrawals or deposits;

-          Placed the bank under the control of Lawrence Connell as a competent person in terms of the Banking Act. Connell, a distinguished former US financial regulator with a many decades of experience, has since taken over the running of the Bank, taken charge of all assets and has assumed control of the Bank's banking and investment business.

"Furthermore, the MFSA has been, and continues to be, committed to its supervisory responsibility and actively managing the situation by making use of all tools and processes at its disposal.

To this end, the MFSA, among other measures:  

-          Confirms that during the authorisation process for Pilatus Bank, it carried out comprehensive due diligence and review of the application documents for many months, including the commissioning of an independent external intelligence report.  

-          Has undertaken various supervisory steps as required, closely reviewing and monitoring the Bank, in accordance with its supervisory responsibilities and subjecting it to numerous examinations including:  on-site inspections regarding prudential issues related to the Bank and o on-site anti-money laundering and combating the financing of terrorism (AML/CFT) examinations conducted jointly with the FIAU.  

-          Has been and continues to coordinate closely with international regulators, including the UK Financial Conduct Authority, law enforcement authorities and others.  

-          A comprehensive and in-depth compliance examination of the bank's operations has been and continues to be underway.

The MFSA will update on progress with regards to this process within the parameters of the law."



from The Malta Independent https://ift.tt/2H0oDYp
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