EU Says Malta Anti-Money Laundering Fight Falters
With Malta police still unable to find the mastermind behind the murder of investigative journalist Daphne Caruana Galizia, the European Union’s top banking watchdog faulted the country’s anti-money laundering unit for its handling of alleged wrongdoings at Pilatus Bank, key to her look into corruption at the highest level.
After an enquiry, the European Banking Authority (EBA) said it had found “general and systematic shortcomings,” at the Maltese Financial Intelligence Analysis Unit (FIAU) but no action was taken against the agency.
The FIAU responded that it was “disappointed” with the EBA’s report and had “serious reservations” about the enquiry without specifying what they were and with no details on where the problems were within Maltese agency.
EU justice commissioner Vera Jourova said the EBA findings were “troubling news,” as the country’s problems over corruption and money laundering mounted.
Pilatus Bank’s assets are currently frozen and the Maltese Financial Supervisory Authority recommended to the European Central Bank to withdraw its banking license but Malta’s government had done nothing despite a finding by the FIAU in 2016 there were suspicious activities at the bank.
Maria Efimova, a Russian whistleblower who worked at the bank, was aiding Galizia but fled in fear for her life and is now in Greece where the country’s high court refused to extradite her to Malta which wants to charge her with making false accusations and theft.
She said it’s being done to discredit her for blowing the whistle on corruption at the bank with the trail leading up to the office of Prime Minister Joseph Muscat, whose wife was cleared of any connection to money laundering.
Greece’s Supreme Court has rejected a second bid by Malta for the extradition of a Maria Efimova, a Russian whistleblower who helped a murdered Maltese journalist investigate money-laundering in high places.
The June 14 ruling upheld an earlier decision in April by a lower court, which had judged the Maltese extradition request bid vague and irregular and not in accordance with European Union arrest warrant procedures.
The island nation had wanted to arrest Efimova, a former bank employee for allegedly providing false evidence that could lead to another’s conviction, making false accusations to authorities and theft after her revelations led to probes of corruption at the highest-level of government, leading up to the office of Prime Minister Joseph Muscat.
Efimova, 35, had helped Maltese journalist Daphne Caruana Galizia, who was killed in a targeted car bombing on Oct. 16. Three Maltese men have been ordered to stand trial for her slaying.
Efimova surrendered to police in Athens in March, citing fears for her life. She is now free.
Efimova, 36, had revealed what she called evidence of a massive scandal at her bank that was being looked into by Galizia.
Efimova earlier told the court she feared she would be killed if she’s forced to return. She had fled to Cyprus with her family before turning herself into police in Greece, seeking protection.
She said she’s the only living witness who can provide evidence of corruption at the highest level in Malta, a European Union country with a notorious reputation for scandal.
“Daphne is no longer here. The only witness will be me. This is why it is possible they don’t want me to exist,” she said, Kathimerini reported.
Efimova was employed for three months in 2016 by the Maltese-registered Pilatus Bank. Her first contact with Caruana Galizia was by email in October 2016 and their co-operation started in February 2017.
Efimova told the newspaper Kathimerini in an interview how fearful she was after Galizia’s case. “It was I who first sent an e-mail to Daphne. I had read her articles on the activities of Pilatus Bank. She had some information and I decided to help her. Before I left Pilatus, I had gathered evidence on its illegal activities,” Efimova said.
She had worked for the President of the Pilatus Bank who is now facing charges in the United States.