Constitutional Court overturns decision on FIAU fines, rules in favour of State Advocate
Constitutional Court overturns a 30 March 2023 ruling by the First Hall of the Civil Court which had challenged a €454,293 fine imposed on Phoenix Payments Ltd by the FIAU for money laundering breaches
The Constitutional Court has overturned a 30 March 2023 ruling by the First Hall of the Civil Court which had challenged a €454,293 fine imposed on Phoenix Payments Ltd by the FIAU for money laundering breaches.
The Court has ruled that the FIAU's administrative penalties do not violate the Maltese Constitution or the European Convention of Human Rights, reversing the previous decision.
A Constitutional Court overturned a sentence given by the Civil Court, First Hall, on 30 March 2023, where Phoenix Payments Ltd objected to a €454,293 fine that had been imposed on it by the FIAU over various money laundering breaches.
In a similar case, the Constitutional Court had turned down a request by the Maltese financial intelligence authority to petition the European Court of Justice for guidance on the interpretation of EU law inside the Maltese courts.
The Court had ruled that the FIAU did not classify as a court as prescribed by law, and that its power to impose administrative penalties on the basis of the Prevention of Money Laundering Act, was unconstitutional and therefore in breach of the European Convention of Human Rights.
The State Advocate appealed the decision on the basis that the FIAU has persons who are specialised in specific legal fields, and therefore, fines issued by an organisation which is organised, specialised, and expert in this field. The state advocate further added that the person who decides on a case is not the same person who investigates,
On 18 November 2024, a Constitutional Court presided by Chief Justice Mark Chetcuti, judge Giannino Caruana Demajo, and judge Anthony Ellul, found that the laws referenced to in preceding cases did not go against the Maltese Constitution. Thus overturning the previous sentence.
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