On March 30, the First Hall Civil Court (Constitutional Jurisdiction) in the case Phoenix Payments Ltd vs the Financial Intelligence Analysis Unit (FIAU) and the State Advocate declared that fines imposed by the FIAU were unconstitutional. Although the decision may still be appealed from, it is important to understand the reasoning by Judge Audrey Demicoli in reaching such a decision. Briefly, the case related to an investigation and a subsequent decision by the FIAU about a number of anti-money laundering failings the unit had noticed in the operations of Phoenix Payments Ltd. The FIAU had ordered Phoenix to pay an ‘administrative' fine of €435,576. Phoenix appealed before the Court of Appeal (Inferior Jurisdiction) on the basis of the Anti-Money Laundering Act (Chapter 373 Laws of Malta) and subsidiary legislation 373.01. Phoenix also argued that the actions of the FIAU breached Malta’s Constitution. Whilst the appeal was still ongoing (subjudice) lawyers representing Phoenix filed another case, this time before the First Hall Civil Court in its Constitutional Jurisdiction against the State Advocate and the FIAU. Phoenix argued that a number of provisions of the Anti-Money...
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