Malta’s MFSA-regulated investment firm XNT Ltd, part of the Exante Group, has won the first hurdle in its court battle against Malta’s FIAU. After years of the inaction of flagrant abuse in well-renowned cases, the FIAU dished out fines to small firms and continued with its action against top firms. Following media pressure, the FIAU opted to fine some larger firms such as XNT. It has so far failed to publicly take action against the likes of Calamatta Cuschieri despite shocking court revelations.
In June 2022, the FIAU announced that it had fined XNT Ltd €244,679 over a series of anti-money laundering shortcomings. The Maltese regulator said the company did not fulfill its anti-money laundering obligations by not assessing and appropriately obtaining information on the purpose and intended nature of their clients’ business relations.
Read more about the FIAU fine against XNT here.
XNT has challenged the FIAU fine in court. Jose Herrera, a former Minister, is representing the company in court. The courts have ruled that the name of XNT Ltd and details about the fine will be removed from the FIAU’s website until the case is concluded.
XNT is also challenging the legality of the fine itself. Other firms such as N Trust Limited have also sued FIAU. XNT has seen various resignations of its directors, including Joseph Zammit Tabona, Malta’s former High Commissioner to the United Kingdom.
Read more about the Exante Group here.
The FIAU’s officials who dish out fines meet behind closed doors, do not publish what is discussed and do not declare their conflicts of interest. It resulted in its Deputy director Alfred Zammit signing off a clean health bill to Pilatus Bank. The officials of this Pilatus Bank are now subject to an international arrest warrant to face money laundering charges. Moneyval had highly criticized Alfred Zammit and FIAU for their lack or wrong action in this case. No resignations at FIAU followed despite all this.
Fintelegram is informed that Michelle Mizzi Buontempo, who is currently heading the MFSA, has received sensitive information about XNT’s operations but so far failed to act or did not inform the public of any possible action.
FIAU’s Kristina Arbociute is a former compliance officer of XNT during the times when this Maltese firm, owned by Russians, was subject to an FBI investigation.
