A suspicious overseas transaction linked to Malta’s Shanghai consul was flagged to the Financial Intelligence Analysis Unit (FIAU), triggering a months-long money laundering investigation across the world. 

Police sources said a secret intelligence report was compiled by the FIAU into the dubious transaction that was tied to Aldo Cutajar, 55, Malta’s consul in Shanghai.

The FIAU intelligence report was handed over to the police for investigation several months ago and sparked an extensive financial crime investigation by the police’s Economic Crimes Unit.

Inspectors leading the case followed a financial trail from Cyprus to Dubai and China. 

Sources privy to the investigation say the police are still gathering more information from foreign jurisdictions, which in the past have not been fully compliant.

Aldo Cutajar. Photo: Facebook

Investigators also received a “confidential tip-off” from an informant, which prompted a raid on Cutajar’s Naxxar home, a police insider said.

There they discovered some €500,000 in cash, valuable collectors’ items, fine jewellery and luxury watches.

They also discovered financial documents and other paperwork which now form part of the body of evidence against Cutajar. 

Between $300,000 and $400,000 is also believed to be held in an account in his name in Dubai, information covered in the FIAU report, according to Times of Malta’s source.

The money laundering racket was allegedly facilitated through property dealings in Cyprus that were believed to be funded by the proceeds of crime which the sources say are believed to be linked to Cutajar’s work representing Malta in China.

The sources have so far been reluctant to spell out exactly what sort of crimes Cutajar allegedly took part in, saying only that it involved “abuse of office”.

Both Cutajar and his wife,Isabel, who faces similar charges, have protested their innocence but had their request for bail denied in court on Sunday afternoon.  

The consul is the brother of the Principal Permanent Secretary, Mario Cutajar.

In a statement, the head of the civil service said he knew nothing of his brother’s dealings and that he had not been consulted when he was appointed to China, first to Beijing and later Shanghai.

As head of the civil service, he had issued instructions for disciplinary action in which he would not be involved, Mario Cutajar said. 

Aldo Cutajar rejoined the civil service after the lifetime interdiction imposed in 2005 was overturned by another court a year later. 

Meanwhile, the Malta Chamber said that while it did not accuse Mario Cutajar of any wrong doing, "highest ethical standards for which the Chamber strives for, demand actions that are exemplary and correct in the interest and expectation of any well-meaning citizen."

It added: "The Chamber is recommending the Head of the Civil Service to do the right thing in the interest of Good Governance and for the country to ensure that all individuals serving in public office, whether elected or appointed are, in fact, persons of integrity, lead by example, and take the indisputable moral high ground where legitimate doubts or concerns arise."