A company has filed a judicial protest against Satabank and the MFSA calling on them to release funds deposited at the bank and holding them responsible for damages if the funds continue to be blocked.

All accounts at the bank were frozen on October 20 when the Malta Financial Services Authority told the bank to refrain, cease and desist from taking further deposits.

Times of Malta had reported how the decision followed a joint inspection and audit by the MFSA and FIAU found shortcomings in the bank’s anti-money laundering procedures.

Pasti e Pasta Ltd said in its judicial protest that it had an account at Satabank but was being denied access to its funds despite never having had any regulatory or legal issues.

It did not know how long this situation was likely to last, although it could be weeks before regulatory issues involving the bank were settled.

The company said that once it did not have any legal issues, the withholding of its funds was illegal and a breach of the right for private property.

This action was causing it material damages, loss of earnings and the possibility of actions by creditors, the company said.

It therefore called on the bank and the MFSA to release its funds without further restrictions which were not in line with the law.  

Lawyer Anthony Farrugia filed the judicial protest.