A fine of € 3.7 million issued to Satabank by the FIAU was reduced to € 851,000 by the Court of Appeal. The bank was fined by the FIAU last year after it was found it had violated anti-money laundering laws. The Court of Appeal, noting that the laws allow for significant discretion for the amount in administrative sanctions, said the fines should be a maximum of 10% of the bank’s income.
The regulations state that fines are limited to € 5 million or no more than 10% of total annual business revenue, according to the latest approved annual financial statements. Satabank is under the control of EY after the MFSA ordered the bank to cease all activity. The MFSA recently announced the appointment of a new controller to oversee the liquidation of the bank.
Police are investigating multi-million-dollar payments that had been transacted through the bank. Satabank’s bank accounts, amounting to 12,000 bank accounts, have been frozen. More than 300 reports of suspicious transactions in excess of € 130 million have been drawn so far. The MFSA had withdrawn the bank’s license.