Updated at 1.30pm
The UK branch of Pilatus has been closed down, the CEO of the Bank of England Prudential Regulation Authority, Sam Woods, confirmed.
Mr Woods confirmed the closure a letter to Nationalist MEP David Casa on Tuesday, adding that the UK regulator would continue to be “actively engaged” with the Financial Conduct Authority, as well as with the local regulator, the MFSA.
The local bank is currently “in the process of winding up”, according to the lawyers of owner Seyed Ali Sadr Hasheminejad, who said when contacted that the defence team believed the former US financial regulator, which the MFSA appointed to take charge of all Pilatus assets, was in the process of closing the bank.
The MFSA had appointed Lawrence Connell as a 'competent person' on March 22 to take charge of Pilatus Bank assets. He also assumed control of the bank’s banking and investment services business and was to carry on that business "until such time as the MFSA may direct". It is not clear whether Mr Connell is closing down operation on MFSA instructions.
The MFSA was asked about the closure but no reply was forthcoming by the time of writing.
The news that the operations were winding down emerged from bail submissions on behalf of Mr Hasheminejad, who is charged in the US with violating economic sanctions against Iran and with money laundering. His lawyers noted that the Ta’ Xbiex-based bank had had its assets seized and was “in the process of winding up” following the owner’s arrest last month.
Earlier this week, the Daphne Project, which the Times of Malta forms part of, reported that the more than 50 companies and trusts owned by Azerbaijan’s ruling elite had moved millions of euros across Europe through accounts at Pilatus Bank.
Civil Society Network asks about Pilatus Bank situation
Civil Society Network asked the Malta Financial Services Authority whether it confirms media reports about the winding down process.
"In the affirmative, does it also confirm that the bank’s licence has been withdrawn in terms of Article 9 of the Banking Act and on which grounds? Why was a media release not published in this instance?" it asked.