BOV to stop Mastercard, clients informed Visa is their only option

Thousands of Bank of Valletta clients holding a Mastercard were given until the end of November to continue using their credit card as ‘Malta’s largest bank’ will cancel the service as of 1 December.

As an alternative for this sudden decision, BOV clients are being offered to be enlisted onto the Visa credit card programme, free of charge, where all their dues pending on their Mastercard will also be transferred onto the new credit card system.

Contacting The Shift News after being informed of this decision, BOV clients described the instructions given by the bank as ‘strange’ and questioned whether this is somehow connected to the recent difficulties being faced by BOV and other local banks due to Malta’s dip in international reputation as a financial institution, including the island’s greylisting by the FATF.

When contacted, a spokesman for the bank vehemently denied any connection between this decision and Malta’s ongoing reputational difficulties, attributing this decision as “purely a business and strategic one”.

“Visa and Mastercard have almost identical global acceptance, meaning that wherever Visa is accepted Mastercard likely is too,” the spokesman said.

“Customers who only hold a Mastercard with Bank of Valletta are being offered a Visa card as an alternative so that they can continue availing themselves of the benefits of these credit cards,” the spokesman added.

The Shift has also independently verified the explanation given by the bank, with financial services experts confirming that the decision has nothing to do with the ongoing reputational trouble facing the island.

“Mastercard and Visa are just technology companies and do not handle any credit. This means that such a decision by the bank has nothing to do with other issues currently affecting Malta,” a senior financial practitioner told The Shift.

During the past years, BOV has hit the headlines on several occasions, particularly due to its role in the downfall of Malta’s international reputation which resulted in a damning report by Moneyval and an eventual greylisting by the FATF.

For many years, BOV was the main bank used for certain suspicious transactions, particularly following Labour’s return to power in 2013.

In 2019, the bank, following an inspection, was slammed by the European Central Bank (ECB) for various failures with regards to anti-money laundering rules.

According to a confidential report by the European Central Bank, BOV had not dealt with a litany of risk management failings despite repeated warnings from the Frankfurt-based regulator stretching back to 2015.

The report called for remedial measures, including assessing if BOV’s top managers were fit for their jobs and reducing exposure to risks posed by foreign clients.

For several years, BOV was chaired by Deo Scerri – the former auditor of the Malta Labour Party. He was forced to ‘retire’ following the ECB’s report.

BOV also acted as the ‘correspondent bank’ of the now-defunct Pilatus Bank, used by high profile foreign clients, including politicians, to allegedly launder millions in transactions.

The FIAU has not taken any action, so far, about BOV’s role in the Pilatus affair while it fined the de-licenced bank €5 million. Pilatus is contesting this decision.

                           
                               
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John
John
18 days ago

So Pilatus Bank channeled funds via BOV.

Pilatus was given a clean bill of healthy by FIAU’s Alfred Zammit. Years later, after Malta got grey listed, after the bank lost its license thanks to the ECB, FIAU issued a fine to Pilatus.

Alfred Zammit did not pronounce a word of why there was a change of heart.

However, BOV were not fined. It does not make sense. What is FIAU waiting for to fine BOV?

James
James
18 days ago
Reply to  John

Don’t forget either that Camilleri Preziosi, co owned by Louis de Gabriele, President of the Chamber of Advicates, issued a report to Pilatus Bank confirming they had found no evidence of money laundering the year before the European Central Bank rescinded its licence.

Separately KMPG issued a separate report also giving Pilatus a clean bill of health.

Check it out on the Guest Post on November 15 2017 on the Truth be Told website :- https://manueldelia.com

Why have they not been investigated and/or fined for whar were clearly flawed reports?

D. Borg
D. Borg
18 days ago
Reply to  John

I believe BoV flagged the transactions between Tonna & Schembri – that kick started the FIAU – alas tortoise paced – investigation, and which according to Malta’s current Central Bank Governor, ‘was written to be leaked’.

A reader
A reader
18 days ago

FIAU is too busy slapping small fish to go after the real issue. MasterCard is a US entity and it’s hard not to see any correlation here with the greylisting
And I am sure FIAU will keep issuing fines to small entities ( incidentally all owned by non Maltese..)

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