Audit and advisory firm KPMG continues to insist it had “acted professionally” in the process for the setting up of Pilatus Bank in Malta even after reports that money used for its setting up came from criminal activities in Venezuela.

Asked whether KPMG had looked into the source of funds prior to assisting the bank in the licensing process, a spokesman for the firm in Malta referred the Times of Malta to KPMG’s statement published last month.

The auditing firm reiterated that it “acted professionally and ethically” in its dealings with the bank, “in line with the professional standards that we adhere to and apply for all our clients”.

KPMG Malta was also asked whether it would be looking into the conduct of those who had been involved in the licensing process. A spokesman said the firm could not comment further in view of client confidentiality laws.

No answer due to client confidentiality obligations

Pilatus Bank chairman Seyed Ali Sadr Hasheminejad was arrested in the United States last March on charges of money laundering and violating economic sanctions against Iran through a project in Venezuela.

During a hearing on bail last week, US prosecutors said criminal proceeds linked to the Venezuela project were used to establish and capitalise Pilatus Bank in 2013, according to a transcript of the proceedings provided by Nationalist MP Karol Aquilina.

KPMG Malta officials had been questioned by a delegation of visiting MEPs late last year.

When asked if Mr Hasheminejad’s Iranian origins and use of a St Kitts & Nevis passport were considered to be obstacles during the licensing process, former KPMG partner Juanita Bencini said that she could not answer due to client confidentiality obligations.

Questions to KPMG International on the same topic remained unanswered.