Troubled Maltese Payment Processor Under Scrutiny
Phoenix Payments Limited, operating under the brand name Paytah and based in Malta, has repeatedly made headlines for the wrong reasons in recent months. The Scam-Or Project has extensively covered the company’s role in facilitating scams, as well as its refusal to accept accountability for allegedly enabling fraudulent operations either intentionally or through gross negligence.
Instead of compensating affected individuals in accordance with its legal duties, Paytah has consistently declined to assist victims in their recovery efforts, leaving many without recourse.
Regulatory Inaction and Scandal at MFSA
Following public disclosures, the Malta Financial Services Authority (MFSA) took an unreasonably long time to issue directives against the payment processor. As of today, Paytah remains licensed. The MFSA itself has faced intense criticism, not only for regulatory inaction but also for its own scandals—such as former CEO Joseph Cuschieri and general counsel Edwina Licari traveling for leisure and business with the alleged mastermind behind the assassination of a Maltese journalist.
On 12 March 2021, the MFSA finally initiated an investigation into Paytah. Critics argue the delay was excessive, with victims of the high-risk payment processor still awaiting any form of compensation. Observers suggest the MFSA appears more focused on maintaining appearances for Moneyval than on protecting and supporting defrauded customers.
Money-Laundering Allegations from Former Compliance Chief
Former Chief Legal and Compliance Officer Daniela Pesci filed legal action against Paytah, alleging the company engaged heavily in cryptocurrency transactions with Estonian firms without adequate AML/KYC procedures. According to her claims, client onboarding was outsourced to Digital Exchange Europa SL—an entity allegedly lacking the expertise to carry out proper compliance checks.
The Scam-Or Project has learned that an out-of-court settlement was reached between Pesci and Paytah. Industry observers believe the company sought to avoid a public trial that could have revealed further damaging information.
Public court records in Malta confirm that Pesci submitted sensitive documents to the Financial Intelligence Analysis Unit (FIAU), headed by Director Kenneth Farrugia. Moneyval had previously criticized Farrugia for the FIAU’s failure to take decisive action against Pilatus Bank. The FIAU has often been accused of applying enforcement inconsistently—“tough on the weak, lenient on the powerful.” Assistant Director Alfred Zammit notably signed a letter clearing the now-defunct Pilatus Bank of wrongdoing.
FIAU’s Silence Raises Further Questions
Other FIAU officials, such as Kristina Arbociute (LinkedIn), have also faced negative publicity. Despite the existence of public court filings, the FIAU has yet to release any information regarding potential enforcement action against Paytah—if any such steps were taken (source).
Sources and Documents:
All referenced information is based on publicly available court filings, regulatory announcements, and investigative reporting by the Scam-Or Project.