Thursday, March 12, 2020


If you are monitoring the Ali Sadr Hasheminejad Iran sanctions violation case in New York Federal Court, you know that the case is about to go to a jury, but what you probably do not know is that no regulatory or law enforcement agency in Malta ever brought civil or criminal charges against him, concerning the Pilatus Bank scandal. Whether the reason was bribes paid to Maltese government officials, to obtain a banking license, or due to fears that adverse publicity would drive future clients to choose another jurisdiction, Ali Sadr appears to have cheated justice in Malta, due to either corruption or reputation damage issues, or both. How much did he pay ? We cannot say, but it is said to have been substantial.

We are reminded that the Cayman Islands is also a favorite offshore venue, but, should you be cheated, or have a bona fide need for relief from fraud or another type of misconduct, do not expect either the regulators, or local law enforcement, or local courts, to assist you. Civil as well as criminal Complaints about white collar crime filed in Grand Cayman have a habit of being permanently filed away, and even improperly shared with locals, with absolutely no enforcement action taken, let alone efforts to seek to recover for the victims.

So,  Malta seems to sliding towards opaque offshore financial center status, where fraudsters can breathe easy, since local government fears the consequences of admitting that there are fraudsters, money launderers and assorted other thieves  plying their dark trade there. Whether the European Union can arrest this action, but it must, for otherwise Malta will find itself entertaining more sanctions evaders, money launderers, and terrorist financiers, who will use Malta's Schengen Zone status to enter Europe's financial markets at will.

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