The Malta Financial Services Authority (MFSA) has come under scrutiny for its lack of response to inquiries regarding the operations of Calamatta Cuschieri Investment Services Limited, a licensed financial services firm implicated in questionable financial activities.
Unaddressed Allegations
In October 2022, questions were directed to MFSA’s acting CEO, Michelle Mizzi Buontempo, concerning allegations that Calamatta Cuschieri had disbursed approximately €500,000 in cash to a convicted criminal, Joseph Difesa. Under oath, Difesa testified to withdrawing substantial cash amounts from the firm’s offices. Despite the gravity of these claims, neither the MFSA nor Calamatta Cuschieri’s directors, including Alan Cuschieri and Nick Calamatta, have issued statements addressing the matter.
Regulatory Oversight and Potential Conflicts of Interest
The MFSA’s executive committee, comprising members such as Christopher Buttigieg and Edwina Licari, holds the authority to grant licenses and initiate investigations. However, concerns have been raised about potential conflicts of interest within the regulatory body:
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Edwina Licari: Allegedly maintains a close association with Yorgen Fenech, the suspected mastermind behind journalist Daphne Caruana Galizia’s murder. Despite this connection, Licari continues to serve as General Counsel at the MFSA with an annual salary of €100,000.
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Christopher Buttigieg: Currently faces a lawsuit from a license holder alleging misconduct.
These associations have led to questions about the impartiality and effectiveness of the MFSA’s regulatory practices.
Financial Intelligence Analysis Unit’s Inaction
The Financial Intelligence Analysis Unit (FIAU), led by Kenneth Farrugia and Alfred Zammit, has yet to comment on the suspicious transactions involving Calamatta Cuschieri. Insiders suggest that the firm’s significant presence in Malta’s financial sector may shield it from thorough investigation or penalties.
Legal Representation and Potential Conflicts
Further complicating the situation is the involvement of legal professionals:
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The same lawyers representing the MFSA in legal matters also serve on the boards of Calamatta Cuschieri’s affiliated companies, raising concerns about conflicts of interest and the integrity of regulatory oversight.
Conclusion
The MFSA’s silence on the allegations against Calamatta Cuschieri, coupled with potential conflicts of interest within its leadership, underscores the need for greater transparency and accountability in Malta’s financial regulatory framework. Addressing these issues is crucial to restoring public trust and ensuring the integrity of the financial system.