Greylisting Fallout and Continuing Corruption
Malta, once positioned as a tax haven within the European Union, remains under scrutiny after being placed on the Financial Action Task Force’s (FATF) greylist. The island nation’s credibility continues to erode as new developments emerge. An independent inquiry into the assassination of journalist Daphne Caruana Galizia concluded that the Maltese government at the time bore responsibility for failing to prevent the crime. In the wake of this, Assistant Police Commissioner Ian Abdilla has been suspended over accusations of prolonged inaction.
Ian Abdilla’s Controversial Tenure
Ian Abdilla, formerly the head of the Economic Crimes Unit (ECU), has faced intense public and political criticism—particularly for his failure to act on the Panama Papers revelations. According to the Times of Malta, Abdilla was known for his inaction in key investigations, raising serious concerns about his connections to influential figures such as businessman Yorgen Fenech and ex-government officials Keith Schembri and Konrad Mizzi.
His suspension by Police Commissioner Angelo Gafà followed closely after the release of the public inquiry into the journalist’s murder. Previously, in 2020, Abdilla was removed from his ECU position amid widespread criticism that he had consistently ignored evidence of high-level corruption. Remarkably, he had climbed from police inspector to Assistant Commissioner in just two years—a trajectory that some argue exemplifies the Maltese system’s dysfunction.
Damning Inquiry Into the Panama Papers Investigations
A separate public inquiry into the ECU’s handling of the Panama Papers uncovered severe shortcomings. Under Abdilla’s leadership, the unit allegedly withheld crucial findings linked to corruption involving senior government figures. The report suggested that Keith Schembri, then Chief of Staff to the Prime Minister, actively interfered in the unit’s investigations.
Key Failures of the ECU Under Abdilla:
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Suppression of evidence linked to Panama Papers revelations
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Alleged direct interference by government insiders
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Delayed or absent investigative action despite clear leads
MFSA Connections and Further Suspensions
In November 2020, Joseph Cuschieri, then-CEO of the Malta Financial Services Authority (MFSA), was suspended. The suspension followed reports that he had traveled to the United States with casino tycoon Yorgen Fenech and MFSA’s General Counsel, Edwina Licari. Fenech is widely suspected of orchestrating Caruana Galizia’s murder and is said to have wielded considerable influence over Maltese politics and business using multiple mobile phones and a vast network of connections.
A New Beginning for the MFSA?
In response to mounting international pressure, Irish lawyer and regulatory expert Joseph Gavin was appointed as the new head of the MFSA. He is expected to assume office in September 2021. The selection of a non-Maltese leader to oversee the country’s primary financial regulator may represent a step toward genuine reform and a break from entrenched local corruption.
Source: Scam-Or Project
For further context on the corruption network surrounding Cuschieri and Fenech, see this report from Times of Malta: MFSA chief Joe Cuschieri went on Las Vegas trip with Yorgen Fenech