MFSA appoints auditors to advise and monitor Satabank after shortcomings in anti-money laundering procedures found

The Times of Malta reports Auditors EY have been appointed by the MFSA to “advise and monitor” Satabank, after a joint inspection and audit by the MFSA and FIAU found shortcomings in the bank’s anti-money laundering procedures.

In a public announcement on its website, Malta’s financial regulator said EY had been appointed as a “competent person” to ensure good governance and controls at Satabank, as well as the implementation of remedial measures in line with the MFSA’s supervisory requirements. The MFSA said the regulatory measure will remain in force until otherwise directed.

The Times, in June had reported that Satabank faced a comprehensive examination of its compliance with anti-money laundering and terrorist financing laws after catching the eye of the MFSA and FIAU. Inspectors from both bodies carried out an extensive audit of Satabank’s client files, to check for any shortcomings in the way it goes about its operations.

The decision to appoint auditors came about after such shortcomings were found.

The Times report that the bank was named by a Sicilian prosecutor last year as having been used by fuel trader Gordon Debono to receive illicit payments through his Maltese company Petroplus Ltd, as part of an alleged €30 million fuel smuggling ring. Mr Debono and PetroPlus Ltd were slapped with US sanctions in February. Malta’s banking sector has faced a tumultuous period over the last few years.

The Central Bank of Malta reacted to the news by issuing a brief statement saying Satabank was “a small international bank with minimal links to the domestic economy”. It added that the MFSA’s move was evidence of the “strong determination” of competent authorities to “protect and uphold good governance in the financial system”.

Full report on Times of Malta