Malta Financial Services Authority

Category: Malta Financial Services Authority

July 19, 2021

Malta Greylisting – Strange deals between MFSA and the Malta Business Registry

The greylisted EU offshore hub Malta is different in many respects. An old Maltese saying that loosely translated says that some people die of thirst while others are drowning in their excesses is still true. Usually, in Malta, it is those with the betters connections that get the better deal. Take the former MFSA executive George Spiteri for example. Today, an employee of the Malta Business Registry, who for long years boasted of his close connections with disgraced, "2019 Corrupt Person of the Year," former Maltese Prime Minister Joseph Muscat.

July 16, 2021

Neglecting Eurojust Guidelines – Maltese Authorities refuse to investigate scam-facilitator Paytah

Malta is greylisted for good reasons, mostly for their failing regulators. Malta-licensed, Phoenix Payments Ltd d/b/a Paytah, refuses to assist the many victims who wired money to the company to top their accounts with broker scams like RoyalsFX, LincolnFX, or CodeFX. Victims reported these transactions to the MFSA. The regulator replied that they would not investigate and asked the victims to report Paytah to the Central Bank of Malta, which replied that it would not investigate such complaints. The victims also emailed Kenneth Farrugia, the Director of Malta Financial Intelligence Analysis Unit, who did not reply.

July 12, 2021

Greylisted Malta and its disgraced regulators!

The Financial Intelligence Analysis Unit (FIAU) of Malta is being highly criticized for paying Maltese online portals and newspapers for positive reportage in its regard. This is very telling and indeed shocking for a European country. Only last month, Malta has been placed on the grey list by the Financial Action Task Force (FATF), which makes the European tax haven much less attractive. Who wants to be a tax resident or owner of a company in a grey-listed jurisdiction? And then there's the strange approach of the Maltese regulators.

May 27, 2021

James Scerri Worley, and the withdrawal of license of Money + Card Payment Institution Ltd

James Scerri Worley is a practicing lawyer in Malta. He was an official of Money + Card Payment Institution Ltd d/b/a epayzz which had its license revoked by the Malta Financial Services Authority (MFSA). The company did not possess enough funds to cover the minimum required by law and did not meet its governance requirements. James Scerri Worley being an integral part of the company, also faced other decisions by the Authority. MFSA decided that Money + Card Payment Institution Ltd should wind up its business.

May 19, 2021

Maltese Compliance Issue – Paytah accuses MFSA of acting in violation of the constitution

The regulated Maltese high-risk payment processor Phoenix Payments Ltd d/b/a Paytah, has sued its regulator, the Malta Financial Services Authority (MFSA). Paytah accuses MFSA of being judge, jury, and executioner. The payment processor took this unprecedented step after the Maltese regulator fined it EUR 32,400 and restricted the company's license. This is not a normal civil court case. Instead, Paytah brought the claim against MFSA at the Constitutional Courts level. This is a first in Malta. Paytah has also sued MFSA for damages.

May 17, 2021

New director joins Maltese Paytah amidst regulatory turmoil, money-laundering allegations, and victim claims

The Italian Alpesh Patel has been appointed as a director of the MFSA-regulated Phoenix Payments Ltd, d/b/a Paytah. The regulator approved this appointment. One fails to understand how the MFSA and the FIAU have so far failed in clamping down Paytah. According to the former Chief Compliance Officer Daniela Pesci, the Maltese payment processor is being investigated by Interpol for money laundering issues. She filed public court documents against Paytah at Malta Courts show that she had her job terminated as soon as she flagged serious regulatory shortcomings.

May 16, 2021

Scam-facilitating Maltese payment processor Paytah striving for damage control

Malta-based Phoenix Payments Limited d/b/a as Paytah has hit the headlines for the wrong reasons over the past months. Fintelegram extensively reported on the scam-facilitating activities of this high-risk payment processor and its refusal to accept responsibility for intentionally or grossly negligently supporting the scams. Furthermore, Paytah did not only not compensate the victims despite its legal obligations, but it also refuses to assist the victims in their fund recovery activities.

March 20, 2021

Bravo! MFSA finally takes actions against scam-facilitating payment processor Paytah

And it does move! Finally, the MFSA is acting on the numerous complaints from aggrieved investors about regulated payment processor Phoenix Payments Limited d/b/a Paytah. As reported by FinTelegram, Paytah has knowingly and willingly supported various broker scams with its services. Many victims have lost their money as a result. EFRI, through its Maltese lawyer, has filed complaints with the MFSA and the authorities. Now the MFSA has announced that a Supervisory Action will be taken.

February 5, 2021

Fund Recovery – Paytah Class Action Campaign

Scam-facilitating payment processors are co-conspirators. Paytah, regulated in Malta by the MFSA, is one of these payment processors. Paytah accepted scam customers and processed their payments. Many victims of Paytah customers lost a lot of money via the payment processor's clients. The former Chief Compliance Officer has filed a complaint with the authorities because of alleged AML/KYC violations.

February 3, 2021

Former Chief Compliance Officer reported Maltese payment processor Paytah to Interpol

Following the Paytah case, one fails to understand how the Malta Financial Services Authority (MFSA) and the Financial Intelligence Analysis Unit (FIAU) have failed to clamp down Phoenix Payments Limited d/b/a Paytah. Interpol investigates the MFSA-regulated high-risk payment processor, Paytah's former Chief Legal and Compliance Officer (CCO) claims. She is currently under the protection of the Maltese Whistleblower Act, but Paytah is still licensed. The public court documents show that she had her job terminated as soon as she raised material AML/KYC issues.

February 2, 2021

Paytah Case – Former MLRO testifies that the payment processor was involved in shabby business

Public court documents suggest that high-risk payment processor Paytah, operated by Malta-based and MFSA-regulated Phoenix Payments Ltd, was into shabby business. Marco Lavanna, the company's beneficial owner and director, dismissed the former Money-Laundering Reporting Officer (MLRO) and compliance officer who raised serious issues with the company’s management. The dismissed MLRO has now sued her former employer on the grounds of unfair dismissal and, under oath, reveals the payment processor's incompliant business approach.

January 31, 2021

European Compliance Mess – A challenging week for BaFin and MFSA

BaFin's President Felix Hufeld and Vice President Elisabeth Roegele had to resign because of the Wirecard scandal. Germany's Finance Minister Olaf Scholz wants to make a fresh start. In Malta, former CEO Joe Cuschieri and his longtime confidant and MFSA General Counsel Edwina Licari are involved in compliance issues. They have let themselves be invited to Las Vegas by Yorgen Fenech. Fenech is said to be the mastermind behind the murder of investigative blogger Daphne Caruana Galizia and suspected of bribing members of the former Maltese government.