MFSA appoints auditing firm as ‘competent person’ to advise and monitor Satabank

Auditing firm EY Ltd has been appointed as a competent person to advise and monitor Satabank in the proper conduct of business, the Malta Financial Services Authority said on Monday.

The measure comes after a joint inspection and audit by the MFSA and the Financial Intelligence Analysis Unit found shortcomings in the bank’s anti-money laundering procedures, according to reports.

“This measure has been taken in order to ensure good governance and controls and the implementation of remedial measures in line with the MFSA’s supervisory requirements as mandated by law. The bank continues to meet its financial prudential requirements,” the financial services regulator said in a statement.

“This regulatory measure shall remain in force until such time as the MFSA shall otherwise direct and shall be without prejudice to any further regulatory action.”

In another statement, the Central Bank of Malta said: “Satabank plc is a small international bank with minimal links to the domestic economy.”

“MFSA’s appointment of a Competent Person (in terms of Article 29(1)(b) of the Banking Act) to advise and monitor this bank’s proper conduct of its business demonstrates the strong determination of the competent authorities to protect and uphold good governance in the financial system,” the central bank said.

In July, Satabank was slapped with a €60,500 fine after it was found to be in breach of risk management laws.

Last year it was named by a Sicilian prosecutor 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, Times of Malta reported.

Satabank is not the only one to be placed under such a measure. In March, the MFSA appointed a competent person to take control of Pilatus Bank, which has been linked with several allegations.

Another institution, Nemea Bank, was placed under administration in 2016 and had its license withdrawn in 2017 by the European Central Bank, acting on advice by the MFSA.