Bank of Valletta yesterday vehemently denied it has been ignoring anti-money-laundering rules but admitted that during a review of its due diligence processes it stopped its ‘banking relationships’ with hundreds of clients.
The bank’s board of directors issued a company announcement to deny claims in media reports, particularly in The Malta Independent, that BOV has been accepting business from Libyan nationals without carrying out the necessary due diligence.
“The bank refutes in the strongest possible terms that it deliberately breached any law or regulation, and invites any person who has concerns regarding the bank’s conduct to raise them with the appropriate supervisory authorities,” the bank said.
While describing the local and international financial landscape as “changing rapidly”, the bank revealed that it stopped hundreds of business relationships after a new due diligence exercise.”
The bank said in an effort to strengthen its anti-financial crime defences, it was conducting an ongoing due diligence review, which also led to the termination of around 70 intermediary relationships over the past year. Without clarifying whether it was referring to the closing of actual client accounts, the bank also revealed that “in the last several months the bank has terminated hundreds of banking relationships many of which were established in the past decade and beyond”.
BOV warned it is expected that more decisions will be taken in the area in the coming months as the due diligence exercise continues.
“More relationships may have to be terminated if and when there is evidence that they may not be meeting the bank’s expectations in terms of proper standard and conduct.”
According to media reports, many Libyans of dubious character who came to reside in Malta following the toppling of the Gaddafi regime and the ongoing civil war found refuge in BOV to stash away millions in cash.
BOV is now denying that it has closed an eye to facilitate its new Libyan clients.
According to international rules, banks are obliged to conduct proper due diligence on the source of funds of their clients prior to accepting to have a business relationship with them.
Emphasising that the bank’s objective is not to make short-term profits but to ensure long-term sustainability, the bank’s statement underlined that it has even set up an anti-financial-crime department.