Beautiful Virgin Islands

Tuesday, Jun 03, 2025

‘MaltaFiles’ firm Credence fined €261,000 over AML shortcomings

‘MaltaFiles’ firm Credence fined €261,000 over AML shortcomings

Corporate services provider Credence, which featured in an extensive European Investigation Collaborations exposé on tax avoidance in Malta, has been fined €261,000 by the Financial Investigation Analysis Unit for breaches of various money laundering obligations.
Credence Corporate Advisory Services is a Maltese law firm which featured in stories on the the existence of Turkish president Recep Tayyip Erdoğan’s family’s offshore network, revealed by The Black Sea as part of its reporting on the #MaltaFiles; and for providing corporate services to Russian billionaire Oleg Boyko’s fast loan company, to save millions in tax by remitting profits to Malta.

The FIAU said it found shortcomings in the company’s obligations, specifically failing to identify an ultimate beneficial owner (“UBO”) and other details pertaining to the UBO’s agent; and in six files classified as ‘high’ risk, only three files had had enhanced due dilegence performed.

In another file, it resulted that the client had connections with Iran and Panama, both of which appear on the FATF’s list of high risk and other monitored jurisdictions. Although the company did collect additional documentation on this client and even appointed two in-house directors, these measures were not deemed sufficient as the nature of the activities involved demanded a higher level of ongoing monitoring and a better understanding of the economic rationale behind the transactions taking place.

In another file, apart from the fact that the UBO of the entity was featured in adverse media, the company failed to take action to duly understand the activity of the company and mitigate the risks associated with the same.

The FIAU said Credence had failed to gather essential information on why a $30 million loan was necessitated for the company in question, and the nature of the end-customers who recieved the loans, and howthe client would be generating a sufficient return to meet the eventual repayment of the loan.

It also transpired that the UBO of one of the clients was a Politically Exposed Person (“PEP”) who had also featured in adverse media in relation to bribery and corruption. Although Credence as in-house director was a signatory on the client’s bank account, this measure was not considered as sufficient to mitigate the risks of the customer. “No senior management approval was sought despite the UBO being a PEP, and that no supporting documentation in relation to the PEP’s source of wealth and funds were obtained.”

Credence failed to carry out EDD on two high-risk customers, one involved in the mining of precious metals and sale of chemicals, the other in renewable energy; they had no plausible explanation for a $24 million loan and the absorption of another €15.9 million loan.

In another file, the FIAU called to attention a number of loan agreements with Panamanian companies for capital expenditure to a Maltese company that was Credence’s client. Lastly, in another file, the Company did not collect source of wealth information on the settlors of the trust, despite these being classified as PEPs.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×