Malta Independent

Nexia BT refuses to answer many PANA committee questions citing legal issues

- Kevin Schembri Orland

When it replied to the PANA committee, Nexia BT only answered a few written questions posed by the EU Parliament’s PANA committee, citing law which prohibits it from providing informatio­n in a number of situations.

Nexia BT representa­tives Brian Tonna and Karl Cini’s (the direc- tors) names were seen many a time in the Panama Papers, and were of primary importance due to both Minister Konrad Mizzi and OPM Chief of Staff Keith Schembri being their clients.

They were invited to appear before the committee, however they refused, instead offering to answer questions in writing. The Greens had provided many of the questions which were asked by the committee in writing.

“You will see that we are unable to reply to a number of your questions because, were we to do

so, we would clearly be in breach of our obligation­s at law, both from a client confidenti­ality perspectiv­e as well as in terms of the anti-money laundering regime applicable to us as subject persons. We would have thought that this would have been considered in advance,” they said.

Questions they were not able to answer, include whether Nexia BT is under investigat­ion, and whether they are aware of any clients being under an investigat­ion.

In response to both of these, Nexia BT said: “We are precluded, under the Prevention of Money Laundering Act and the Prevention of Money Laundering and Funding of Terrorism Regulation­s, from divulging any informatio­n relating to the existence or otherwise of any investigat­ion. Were we to answer your question, we could be guilty of a tipping-off offence.”

Nexia BT said in response to other questions, that Brian Tonna does not have a desk in the Office of the Prime Minister, and also that he has not been in business with OPM Chief of Staff Keith Schembri.

The company was asked about the relationsh­ip between Nexia BT or Brian Tonna and Mossack Fonseca Malta, whether Brian Tonna owns Mossack Fonseca Malta, whether Mr Tonna’s licensed fiduciary company holds shares in Mossack Fonseca Malta in a fiduciary capacity and/or on behalf of which ultimate beneficiar­ies, and whether BT Internatio­nal Ltd, owned by Mr Tonna, is the only shareholde­r of Mossack Fonseca Malta Ltd.

In response, Nexia said: “BT internatio­nal Ltd held all of the shares in Mossack Fonseca & Co (Malta) Ltd in its capacity as a fiduciary services company, licensed by the Malta Financial Services Authority under the Trusts and Trustees Act. Our confidenti­ality obligation­s towards clients preclude us from divulging the identity of the clients on whose behalf shares are held. All of BT’s shares in Mossack Fonseca & Co (Malta) Ltd were transferre­d in April 2016.”

Asked why they shared informatio­n on the beneficial ownership of Egrant over Skype while they were sharing the beneficial ownership informatio­n on the entities created for Mizzi and Schembri by e-mail, as well as asked for the name of Egrant’s beneficial owner and to confirm whether this person is a PEP or not, Nexia BT said that they did not share such informatio­n by Skype or any other means of communicat­ion.

They also stuck to their guns, stating that Egrant Inc was purchased by Nexia BT in July 2013 as a shelf company. “It has never had, and does not currently have, any client as ultimate beneficial owner, and it has never been active.” Nexia BT also said that they have communicat­ed this through press inquiries in the past.

“We have always disclosed the facts surroundin­g the ownership of Egrant Inc. openly and, contrary to certain allegation­s being made in the press, we have never claimed profession­al secrecy in connection with Egrant Inc. Our replies to this same question have been, and remain, consistent and factual.”

‘We are precluded by law from answering any questions which relate to particular clients’

As for questions relating to Minister Konrad Mizzi and Keith Schembri, Nexia BT grouped them and gave a general reply.

Such questions included whether the structure created for Minister Mizzi and respective­ly for OPM Chief of Staff Schembri raised any suspicion; whether they conducted enhanced customer due diligence when dealing with Minister Mizzi and Mr Schembri; why they chose not to set up the trusts in Malta, whether Nexia BT ever backdated any docu- ment related to the set-up of offshore structures for Minister Mizzi or Mr Schembri, etc.

“As a general reply to the questions, we are precluded by law from answering any questions which relate to particular clients. Should we disclose the informatio­n being requested below to the PANA Committee, we would be in breach of our client confidenti­ality obligation­s as well as our obligation­s under the Prevention of Money Laundering Act and the Prevention of Money Laundering and Funding of Terrorism Regulation­s.

The PANA Committee also asked whether it is a usual practice of Nexia BT to provide comfort letters for their clients to certify they are trusted persons, whether they have done so with Minister Mizzi and Mr Schembri. “If yes, isn’t it contrary to your code of conduct to certify yourself one of your clients?”

In response, Nexia BT said that “as profession­als and warrant holders, we are approached from time to time by our clients to provide character and profession­al references. We provide for clients we know well and hence have an in-depth understand­ing on which to base the content of these letters. We cannot divulge any specific informatio­n in this respect which relates to particular clients, for the reasons given in other answers.”

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Brian Tonna

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