Nexia BT partner Karl Cini risks facing an investigation by the Association of Chartered Certified Accountants, the Times of Malta has learnt.
In a letter sent to the global network of accountants, Nationalist MEP David Casa listed cases of alleged wrongdoing resulting from the Panama Papers and involving Mr Cini.
He accused Mr Cini of being complicit in withholding evidence from the Financial Intelligence Analysis Unit (FIAU) during its investigations into Tourism Minister Konrad Mizzi’s offshore structures.
The FIAU itself said in a leaked report that certain information stemming from the Panama Papers was withheld by Nexia BT.
Leaked e-mails showed Mr Cini as the main point of contact between Nexia BT and the Panama law firm Mossack Fonseca.
In the letter, Mr Casa described Mr Cini’s continued membership of the ACCA as a “disservice” to its other members and to the wider community that valued accredited accountancy professionals.
Mr Cini’s conduct was aggravated by the fact that, as Nexia BT’s money-laundering reporting office, he was responsible in ensuring robust processes for detecting money laundering and reporting it to the authorities, Mr Casa argued.
Attached to the letter was documentation, including leaked FIAU reports and media articles.
The ACCA informed Mr Casa that the material received was forwarded to its investigation department. “They have opened a procedure and are looking into the issue”, it said.
Mr Cini is one of seven people, including Prime Minister Joseph Muscat, appealing a decision by the Magistrates’ Court to investigate money-laundering concerns emerging from the Panama Papers.
He was called in for police questioning last month in connection with his evidence in the Egrant inquiry.
Mr Cini told the Times of Malta the ACCA had received a number of selected media articles, including one penned by slain journalist Daphne Caruana Galizia.
As an objective and serious organisation, the ACCA directed the matter to its proper channels and the investigation was put off pending the conclusion of inquiries being held in Malta in connection with allegations made in the wake of the Panama Papers, he continued.
This meant, Mr Cini argued, there was no investigation under way by the ACCA.
He said putting off the investigation was the right approach because it allowed the ACCA to pursue its own probe in due course, should it consider this to be necessary.
Mr Cini, together with Nexia BT managing partner Brian Tonna, resigned from the Malta Institute of Accountants last year after they were faced with an investigation into their conduct in the wake of the Panama Papers.
Mr Cini pointed out to the Times of Malta that, contrary to the ACCA’s approach, the MIA had insisted on conducting an investigation in parallel to court proceedings despite his and Mr Tonna’s protestations that it was the wrong approach.
“At the very least, the deferral of any third party investigations is required because any statements or documentation released to third parties in the course of any parallel investigation may not only prejudice the official investigation but also undermine the fundamental rights of the individuals subject to the criminal investigation,” Mr Cini said.
He again categorically denied any wrongdoing and said he had cooperated to the fullest extent with the authorities in the criminal inquiry and related court proceedings.
Mr Casa has also asked the Accountancy Board in Malta to set the ball rolling to withdraw Mr Cini’s and Mr Tonna’s warrants. However, the board has decided to await the outcome of the magisterial inquiry.