Edward Scicluna Steps Down from Key AML Role Amid Fraud Scandal

Edward Scicluna, Malta’s central bank governor, has suspended himself from his position amid a fraud scandal and has also resigned from a crucial anti-money laundering (AML) body. Mr. Scicluna was a board member of Malta’s national coordinating committee on combating money laundering and terrorist financing.

Last week, Mr. Scicluna suspended himself from his central bank role pending the outcome of a court case related to a 2015 hospitals privatization deal during his tenure as finance minister. Paul Zahra, the Permanent Secretary with Malta’s Ministry for Finance and Employment and chair of the AML committee, confirmed that Mr. Scicluna would also be stepping down from his committee position. Mr. Zahra informed the Times of Malta that Mr. Scicluna “is relinquishing his role” on the committee’s board.

Mr. Scicluna, 77, faces accusations of fraud and misappropriation along with 13 other current or former senior government officials. All have denied the charges, which surfaced in May. The Maltese government stated on Tuesday that it had acknowledged Mr. Scicluna’s request to suspend himself as central bank governor “until a court case against him is concluded.” Central Bank Deputy Governor Alex Demarco will assume the position in the interim.

Mr. Scicluna has expressed his readiness to appeal to the European Court of Justice if there were any attempts to remove him permanently as governor. He agreed to step aside temporarily to clear his name. He told the Times of Malta, “Had the prime minister relieved me of my duties, I would have resorted to the European Court of Justice and had I won I would probably have been refunded my lost income.”

He further stated, “I will step aside only for the time being, but I will remain governor until the end of my term.”

By fLEXI tEAM