A Long-Awaited Action
At last, the Malta Financial Services Authority (MFSA) has responded to the many complaints filed by defrauded investors concerning the regulated payment institution Phoenix Payments Limited, operating under the brand Paytah (www.paytah.com). According to Scam-Or Project reports, Paytah has knowingly provided payment services to multiple fraudulent brokers, enabling scams that left many victims out of pocket.
Complaints were submitted to MFSA and Maltese authorities through legal channels, and the regulator has now confirmed that a Supervisory Action is underway.
Allegations of Money Laundering
Sources indicate that Interpol is also conducting inquiries into Paytah’s activities. The company’s former Chief Legal and Compliance Officer alleged that Paytah engaged heavily in cryptocurrency transactions with Estonian-based companies, bypassing proper AML/KYC protocols.
Client onboarding, reportedly outsourced to Digital Exchange Europa SL, was allegedly handled by an entity lacking the necessary expertise.
Key Individuals at Paytah
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Directors: Marco Lavanna, Keith Farrugia, Francesc Xavier Alabart Lopez
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Other Influential Figure: Spanish national Jesus Perez – currently Chief Product Officer at Monetum, a Swiss crypto payment processor linked to Marco Lavanna (LinkedIn)
The management team’s involvement in running multiple payment processors across different entities suggests a pattern of disregarding regulatory obligations.
Regulatory Oversight Gaps
The Financial Intelligence Analysis Unit (FIAU) in Malta has so far taken no public action against Paytah. Reliable information suggests FIAU has been aware of questionable operations at Paytah for months.
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Kenneth Farrugia (FIAU Director) and Alfred Zammit (Assistant Director) were previously criticized for inaction in the Pilatus Bank case, which was eventually closed by the European Central Bank.
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Moneyval has issued strong criticism of FIAU’s shortcomings.
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FIAU staff has also faced scrutiny — for instance, Kristina Arbociute was described in Maltese media as maintaining unusually close ties with local firm Exante (XNT).
MFSA Leadership Under Scrutiny
MFSA is now headed by Christopher Buttigieg, a figure who rose rapidly under former CEO Joseph Cuschieri. Cuschieri resigned following a scandal involving alleged Daphne Caruana Galizia murder suspect Yorgen Fenech.
Despite criticism for his role in Malta’s failed “blockchain island” initiative, Buttigieg remains in place. Edwina Licari, also linked to the same controversy, continues to serve as MFSA’s legal counsel.
Conclusion
The MFSA’s Supervisory Action represents a long-overdue step against a payment processor accused of enabling large-scale scams. The outcome of this case may set a precedent for how Maltese regulators deal with high-risk financial service providers.
If you have been affected by scams or suspect a payment processor’s involvement, report it to the relevant authorities immediately.