The European Greens have asked the European Commission to investigate potential anti-money laundering law violations in Malta, MEP Sven Giegold said today.

Addressing a press conference in Strasbourg ahead of a debate about the rule of law in Malta, Mr Giegold said it was worrying that the police failed to act upon the FIAU reports detailing suspected money laundering activities by Keith Schembri and Konrad Mizzi.

He announced that the European Greens had written to the European Commission, asking it to investigate potential infringements of the anti-money laundering directive as well as of the capital requirements directive. (see letter in pdf document below)

Mr Giegold said an informal conversation he had with prime minister Joseph Muscat had not changed the way the Greens would be proceeding.

The MEP said he believed the European Commission should take over where the Maltese institutions had failed.

Europe cannot accept violations of EU law in any member state

Mr Giegold said it looked like both the Panama Papers and the FIAU report had failed to trigger serious police investigations or prosecution procedures.

He reiterated a declaration he made earlier this month that the general election did not replace the need for a proper investigation.

Mr Giegold said the FIAU reports (see pdf links below) showed failures to carry out the necessary enhanced due diligence procedures on politically exposed persons.

The European Commission, therefore, should also look into whether the obligations under the capital requirements directive had been met by Pilatus Bank.

Mr Giegold said it was very worrying that the police had not followed up on the FIAU reports.

He said all this had served to strongly harm Malta's reputation as a financial services centre.

"Europe cannot accept violations of EU law in any member state," Mr Giegold said.

He said Malta's financial services sector was moving towards a situation which was similar to the democratic shortcomings in Hungary.


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