Updated 1.20pm with government statement

The government should do its utmost to strengthen relations between Maltese banks and foreign correspondent banks, especially in light of the Panama Papers scandal, the Nationalist Party said. 

Prime Minister Joseph Muscat and Finance Minister Edward Scicluna visited the US this week to discuss correspondent banking and custodian services, among others, that are affecting Maltese banks and gaming companies.

American banks are limiting their networks to the United States and cutting down channels to the EU, in a bid to render themselves only liable on intra-US transactions.

Correspondent banks were required to carry out commercial transactions with international companies, also permitting local banks to negotiate in the American dollar. 

In a statement, PN spokeswoman Kristy Debono said the government should address the problem of Malta's reputation, especially after the Panama Papers, which was denting local banks' relations with correspondent banks.

It should also seek to use Malta's presidency of the EU council to get all parties together to build relations with correspondent banks, she said.  

The government should also address at once the resignation of the director general of Malta's Financial Intelligence Analysis Unit and show it is ready to fight money laundering. 

Director Manfred Galdes resigned last August, months after he was tasked with investigating the Panama Papers saga.

Irresponsible, misinformed Opposition - government

In a statement later, the government rejected the PN statement as irresponsible and misinformed.

It said the Prime Minister's visit to the US was focused on luring more work and investment to Malta. The visit was intended to tap into Fintech services, new banking opportunities and alternative sectors in the financial services industry.

Meetings were also held to attract more correspondent banking in light of the policies imposed on American banks in recent years.

"This issue has been going on since the previous administration, which failed to reap results."

The government said the banking sector in Malta remained strong and since we have a strong economy, the results would continue showing, even thanks to this visit to the US.