Pilatus Bank

Last updated
Pilatus Bank
Company type Corporation
Founded2014
Defunct2018
Headquarters Ta' Xbiex, Malta
Key people
 Seyed Ali Sadr Hasheminejad, founder and CEO

Pilatus Bank Plc was a bank established in Ta' Xbiex, Malta. [1] [2] The bank was created in 2013 to provide private and commercial banking services to high net-worth individuals and was closed down in 2018, after major local and international money laundering scandals. [3] [4] [5] The bank was also involved in major local political controversies involving former energy minister Konrad Mizzi, former OPM chief of staff Keith Schembri, and businessman and murder suspect Yorgen Fenech. [6] [7] [8] [9]

Contents

History

Pilatus Bank started its operations in January 2014. Its owner was Seyed Ali Sadr Hasheminejad, known as Ali Sadr. [10] The bank came into the spotlight after reporter Daphne Caruana Galizia accused the bank of laundering funds from allegedly corrupt schemes on behalf of offshore companies and individuals. [11] [12] [13] An 18-month investigation by a magistrate in Malta disproved any claims that Egrant was connected to Joseph Muscat or Michelle Muscat. [14] However, the bank was found to lack any serious controls to monitor money transfers, fined and eventually had its banking licence revoked. [15] [16] [17]

Ali Sadr was charged with violating US sanctions against Iran in the United States in March 2018. [18] Found guilty at trial, the court decision was reversed in July 2020. [19]

On 4 November 2018, the bank had their banking license revoked by the European Central Bank (ECB). [20] Following the release of Ali Sadr in 2020, Pilatus tried unsuccessfully taking legal action through the European Court of Justice for the return of the banking license and for damages against the ECB. [21] [10] In September 2022, the International Centre for Settlement of Investment Disputes has called on Malta to halt any possible legal action against Ali Sadr. Sadr is claiming Maltese authorities, namely the MFSA and FIAU have personally prosecuted him and violated his rights. [22] [23] [24] There is intense political pressure for Maltese authorities to take legal action against Sadr. [25] [26]

See also

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References

  1. ↑ Micallef, Keith (25 March 2020). "PilatusBank was a 'money transfer operation'". Times of Malta. Retrieved 25 March 2020.
  2. ↑ Borg, Jacob (2022-12-03). "Pilatus Bank for dummies: the entire scandal explained, step-by-step". Times of Malta. Retrieved 2025-01-16.
  3. ↑ Tronchet, Sylvain (2018-04-18). "Des entreprises françaises sous contrôle d'oligarques azerbaïdjanais via le paravent maltais". www.franceinter.fr (in French). Retrieved 2022-04-26.
  4. ↑ Chandrasekhar, Anand (2019-06-26). "Pilatus accused of paying millions to secure Indian defence contract". SWI swissinfo.ch. Retrieved 2025-01-16.
  5. ↑ Garside, Juliette; Kirchgaessner, Stephanie (2018-04-23). "Azeri ruling families linked to secret investments via Maltese bank". The Guardian. ISSN   0261-3077 . Retrieved 2025-01-16.
  6. ↑ Bonnici, Julian (2021-03-26). "Keith Schembri Opened Pilatus Bank Account Weeks Before Alleged Transfer On Passport Kickbacks". Lovin Malta. Retrieved 2025-01-16.
  7. ↑ Borg, Jacob (2022-01-30). "Company in 17 Black cash trail received 'suspicious' Pilatus funds". Times of Malta. Retrieved 2025-01-16.
  8. ↑ "Pilatus whistleblower claims Azeri billionaire is behind 17 Black" . Retrieved 2025-01-16.
  9. ↑ Balzan, Jurgen. "Keith Schembri, Konrad Mizzi to face criminal charges over 17 Black". Newsbook.
  10. 1 2 "EUR-Lex - 62022CJ0256 - EN - EUR-Lex". eur-lex.europa.eu. Retrieved 2025-01-16.
  11. ↑ Camilleri, Ivan (2017-04-24). "No comment on police commissioner's fenkata from Home Affairs Minister". Times of Malta. Retrieved 2025-01-16.
  12. ↑ Vella, Matthew (23 September 2019). "MFSA-FIAU joint investigation in Pilatus Bank completed and handed to police". Malta Today. Retrieved 25 December 2019.
  13. ↑ Borg, Jacob (2018-04-23). "Pilatus Bank used by Azeri elites to move millions into Europe". Times of Malta. Retrieved 2025-01-16.
  14. ↑ Vella, Matthew (17 December 2019). "Egrant magisterial inquiry". Malta Today.
  15. ↑ Malta, Times of (2021-08-31). "Pilatus fined record €4.9m for letting millions flow through Malta unchallenged". Times of Malta. Retrieved 2025-01-16.
  16. ↑ Malta, Times of (2021-08-31). "From €750,000 to €150 million: What investigators discovered at Pilatus Bank". Times of Malta. Retrieved 2025-01-16.
  17. ↑ "Public Notice regarding Pilatus Bank". MFSA. Retrieved 2025-01-16.
  18. ↑ Raymond, Nate (20 March 2018). "U.S. arrests Iranian over alleged sanctions evasion scheme". Reuters. Retrieved 20 March 2018.
  19. ↑ Johnson, Carrie (12 June 2020). "Prosecutors move to drop their own case after evidence issue". NPR.
  20. ↑ "Malta's Pilatus Bank has European licence withdrawn". The Guardian. 5 November 2018. Retrieved 5 November 2018.
  21. ↑ "Pilatus to sue European Central Bank for damages in American courts". Malta Today. 1 December 2020.
  22. ↑ "International body orders pause to all proceedings against Pilatus' Ali Sadr". Times of Malta. Retrieved 2022-11-21.
  23. ↑ "Ali Sadr Has A Case Against Malta". EconoTimes. 2022-08-07. Retrieved 2022-11-21.
  24. ↑ "Ali Sadr SLAPPs Malta police, criminal proceedings 'suspended'" . Retrieved 2022-11-21.
  25. ↑ "Pilatus Bank failed to publish audited accounts" . Retrieved 2025-01-16.
  26. ↑ "Magistrate ruling on Pilatus challenge is 'perversion of and contrary to justice' – Repubblika - The Malta Independent" . Retrieved 2025-01-16.
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