The financial services watchdog would not say whether it is investigating the Malta-based bank that was fined €1.75 million last week, insisting such information was “confidential”.

The Dutch Authority for the Financial Markets (AFM) fined the Ta’ Xbiex-based bank last week in connection with activities that occurred between September 2013 and June 2016.

Novum said on its website, the Dutch regulator imposed the fine in the belief that the bank had obtained the incorrect EU passport of its banking licence prior to operating in the Netherlands throughout the period in question.

According to reports in the Dutch media, the bank had offered short-term loans with-out a permit, providing about 140,000 of such loans with interest rates above the legally-permitted 14 per cent.

Just days before the Dutch regulator took action, the Malta Financial Services Authority had fined the same bank €80,500 for breaching article 11 of the Banking Act, dealing with the opening of branches. The bank did not appeal this fine.

The MFSA was asked whether it was investigating the bank after being fined by the Dutch authorities but a spokesman replied: “Information on any investigations or compliance reviews related to the supervisory work of the MFSA is confidential,” adding that any action taken against an institution was always uploaded on the website.

The spokesman would not comment either when asked whether the MFSA had been in contact with its Dutch counterparts throughout the investigation that resulted in the fine. He said the financial services watchdog collaborated “on an ongoing basis with its counterparts in Europe, including the Dutch financial regulator”.

Novum Bank said it “strongly disagrees” with the Dutch regulator’s decision, which it is appealing.

“Neither the [Dutch regulator’s] nor the MFSA’s fine pertain to the products or conduct of the bank while operating in the Netherlands but rather to a failure to passport its licence correctly,” it remarked.