The General Court of the European Union has dismissed a request by Malta-based Pilatus Bank plc to overturn the European Central Bank's decision in 2018 to revoke the bank's authorization to operate as a credit institution in the bloc.
Pilatus Bank's license was revoked by the ECB after its majority shareholder was arrested for allegedly funneling money into Iran.
All eleven of the bank's arguments to overturn the ECB's decision were rejected in the detailed European General Court statement.
"Pilatus Bank plc and Pilatus Holding Ltd are respectively, a less significant credit institution established in Malta which is subject to direct prudential supervision by the Malta Financial Services Authority (MFSA) and the direct majority shareholder of that credit institution," according to the EU General Court.
"According to a press release published by the United States Department of Justice on 19 March 2018, Mr Ali Sadr, the shareholder of the first applicant who indirectly holds 100% of its capital and voting rights, was arrested in the United States on six charges relating to his alleged participation in a scheme in which approximately USD 115 million in payments to finance a project in Venezuela were illegally funneled for the benefit of Iranian individuals and undertakings."
By fLEXI tEAM