The Maltese Pilatus Bank was at the center of a huge European money-laundering case. It was launched in 2014 by, Seyed Ali Sadr Hasheminejad a/k/a Ali Sadr. The European Central Bank shut the bank down in 2018 after Ali Sadr was arrested by the FBI on charges of breaching sanctions against Iran. Sadr was indicted in the U.S., but finally, the charges were dropped. However, the money-laundering charges in Malta continue. It seems to be a highly political and controversial case!
Dropped U.S. Charges
After the U.S. prosecutors dropped the charges against Ali Sadr in 2020, Pilatus Bank is taking legal action through the European Court of Justice to return the banking license and for damages against the ECB.
Continued Maltese Charges
While the U.S. charges were dropped, Maltese authorities continued their prosecution. In 2017, the murdered Maltese blogger Daphne Caruana Galizia accused Pilatus Bank of laundering funds. She alleged that the secretive Panama company Egrant was owned by then prime minister Joseph Muscat’s wife, Michelle, and the company banked with Pilatus. An 18-month investigation found that the claims were untrue in the first place.
The Pilatus Bank inquiry by Magistrate Ian Farrugia concluded in December 2020. He had recommended criminal action against Pilatus Bank owner Ali Sadr, bank operations supervisor Luis Rivera, director Ghambari Hamidreza, supervisor Mehmet Tasli, chief risk officer Antoniella Gauci, money laundering reporting officer Claudanne Sant-Fournier, and Pilatus Bank as an entity.
Earlier this year, Maltese law enforcement issued international arrest warrants and asked the U.S. for the extradition of Ali Sadr on possible money-laundering charges in Malta.
In an interim decision in September 2022, the International Centre for Settlement of Investment Disputes recommended a suspension of all proceedings by Malta against Ali Sadr until it decides on the case.
New Maltese Development
However, at least two former Pilatus Bank officials will not be prosecuted despite a magistrate’s order, after Attorney General Victoria Buttigieg issued a nolle prosequi, MaltaToday reported. The decision not to prosecute could be part of a deal requiring the two officials to testify against other high-profile bank officials.
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