Pilatus depositors continue filing claims as €130m remain frozen
Funds have been frozen since 2018 and depositors are unable to access them until criminal proceedings are concluded
Depositors at the shuttered Pilatus Bank continue to file “numerous claims” to recover their money while the bank’s criminal prosecution remains in its early stages, its administrator said.
Over €130 million in deposits remain trapped at Pilatus, and administrators PwC say a resolution will only be possible once the criminal proceedings against the bank are concluded.
During the last six months of 2025, PwC said it handled numerous requests for information from the police, the FIAU, the tax commissioner, the MFSA and other authorities, requiring extensive searches of the bank’s records.
Money held at the bank has been frozen since 2018, when regulators swooped in to take control of the bank after its owner and chairman Ali Sadr was charged with money-laundering in the US.
The charges were later dropped.
In its latest half-yearly report to the Finance Minister, PwC said it could not return client funds because of an MFSA directive and a freezing order linked to the ongoing criminal prosecution of the bank and one of its former executives in Malta.
The administrator said in the report, which covers the second half of 2025, that prosecutors have yet to identify which specific depositors were allegedly involved in “money laundering transactions”.
“As a result, the position remains that all depositors, including those with no alleged involvement, are unable to access their funds until the criminal proceedings are concluded with finality. This situation continues to cause considerable impacts on affected clients and poses ongoing administrative and reputational challenges,” PwC said.
PwC said the criminal case remains at the compilation of evidence stage, despite earlier commitments made by prosecutors to conclude their evidence by January 2025.
“This continued delay has prolonged the proceedings significantly and has further hindered the progress of ancillary processes tied to the bank’s frozen assets and operational wind-down.
“In parallel, efforts have been ongoing to dispose of the bank’s office furniture, which remains subject to the freezing order issued by the criminal court,” PwC said.
One high-profile Pilatus client with money still trapped at the bank is billionaire passport buyer Christopher Chandler.
Chandler has sued Pilatus, PwC, and the MFSA to recoup €33,000 held in deposits and a bond fund.
He argued Pilatus and PwC breached their duties under banking law by failing to act in his best interests as a depositor. Chandler asked the civil court to order them to release his money, together with interest.