Pilatus Depositors: €130m Still Frozen, 3 Years On

Pilatus Depositors: The Long Wait for €130m

In the heart of Malta’s capital, Valletta, the iconic Auberge de Castille, now the Office of the Prime Minister, stands as a silent witness to the ongoing saga of Pilatus Bank depositors. Three years after the bank’s dramatic collapse, over €130 million remains frozen, leaving depositors in limbo. Hot Malta takes a closer look at the latest developments and the long road ahead.

From Luxury to Lockdown

The once-luxurious Pilatus Bank, nestled in the prestigious Portomaso area of St. Julian’s, was a symbol of Malta’s financial prowess. But in 2019, it all came crashing down. The bank’s founder, Ali Sadr Hasheminejad, was arrested in the U.S. on charges of violating American sanctions against Iran. The Maltese Financial Intelligence Analysis Unit (FIAU) then ordered the bank’s closure, leaving depositors shocked and stranded.

Unfreezing the Assets: A Slow Process

Since then, depositors have been locked in a battle to retrieve their funds. The Maltese government set up a compensation scheme, but progress has been painfully slow. As of now, only around €50 million has been distributed, leaving over €130 million still frozen. Depositors, many of whom are local businesses and individuals, are growing increasingly frustrated.

“It’s been three years, and we’re still no closer to getting our money back,” laments Mario, a small business owner from Birkirkara who asked not to use his full name. “I’ve had to take out loans to keep my business afloat. It’s a constant struggle.”

Lawyers representing depositors have been pushing for faster action. Dr. Joseph Giglio, a prominent Maltese lawyer, tells Hot Malta, “The process is too slow. We need to see more urgency from the authorities. These are people’s livelihoods at stake.”

Light at the End of the Tunnel?

There are signs of progress, however. The Maltese government recently announced plans to inject €100 million into the compensation scheme. Finance Minister Clyde Caruana told Hot Malta, “We understand the difficulties depositors are going through. We’re doing our best to expedite the process.”

Meanwhile, the FIAU is working with the European Central Bank to trace and recover the bank’s assets. A spokesperson for the FIAU told Hot Malta, “We’re committed to ensuring that all funds are recovered and returned to their rightful owners.”

But for many depositors, the wait continues. “I just want my money back,” says Maria, a retiree from Msida. “I’ve had to cut back on everything. It’s not easy at my age.”