● MFSA comes down hard on Pilatus and its chairman

The MFSA supervisory council yesterday came down hard on Pilatus Bank and its chairman Ali Sadr Hashemi Nejad, who was ordered to be removed from any position he holds at the bank, but refrained from revoking the banking license of the company.

The council called a meeting at 8.30am after Ali Sadr Hashemi Nejad was arrested on charges that he evaded US economic sanctions against Iran by sending more than $115 million from Venezuela through US banks.

In a statement yesterday afternoon, the MFSA announced that it has issued an order to remove Ali Sadr Hashemi Nejad, with immediate effect, from the position of director of the bank and any executive roles that he holds within the Bank; to suspend the exercise of his voting rights as a shareholder of the Bank; and for him to refrain from exercising the legal and judicial representation of the Bank.

The MFSA has also directed Pilatus Bank to not allow any banking transactions, including withdrawals or deposits held with the bank by the shareholder, members of the Board of Directors and Senior Management officials of the Bank, or any connected persons or related persons thereto, whether direct or indirect.

The Bank has been further directed to obtain the MFSA’s prior approval before effecting any movement of the Bank’s assets.

The Authority said it is also considering other supervisory measures that may be applicable in the circumstances.

The Supervisory Council is headed by the DirectorGeneral, who is exclusively responsible for licensing, supervision and regulation, and is composed of the Directors responsible for Authorisation, Banking Supervision, Conduct Supervision, Securities and Markets Supervision, Insurance and Pensions Supervision, and Regulatory Development.