Malta's financial watchdog was handed a 300-page report about Satabank’s owner in 2013 but never acted on it, PN MP Jason Azzopardi has claimed.
Dr Azzopardi told parliament on Tuesday that the report came from the Luxembourg financial intelligence analysis unit, after Satabank’s owner - Bulgarian Cristo Georgiev- moved his operations from Luxembourg to Malta.
The move came after Mr Georgiev realised Luxembourg was investigating him for money-laundering and other illegalities, Dr Azzopardi said.
Accounts at Satabank have been effectively frozen by the Malta Financial Services Authority for around two weeks, after the MFSA ordered Ernst and Young to administer the bank's assets.
The move has left many businesses "in a state of desperation", with no way to access their funds.
If the Malta Financial Services Authority had done its proper due diligence, it would have failed the owner for certain activities and never opened the bank, Dr Azzopardi noted.
The Bulgarian owner was also known for his close relations with the Russian mafia, he alleged.
The Bulgarian owner was also known for his close relations with the Russian mafia- Jason Azzopardi
Speaking in Parliament, Dr Azzopardi alleged that former EU commissioner John Dalli, who had resigned following allegations of bribery and corruption, had an account at Satabank. A family relative of his also held an account here, Dr Azzopardi claimed.
The owners of Vitals Global Healthcare, and Bluestone Investment ltd. also held an account at the bank, he added.
Calls for investigation into every deal Konrad Mizzi has made
The PN MP also called for an investigation into "every deal Tourism Minister Konrad Mizzi has made", adding people could no longer suffer because the institutions were not doing their work properly.
Dr Mizzi has been under increased scrutiny after it was revealed local businessman Yorgen Fenech is the ultimate beneficial owner of mystery company 17 Black. The company was named as a 'target client' of offshore companies owned by Dr Mizzi and OPM chief of staff Keith Schembri.
"17 Black was not acting alone- there was also Macbridge," Dr Azzopardi said on Tuesday.
Macbridge is the name of a second company which financial advisers Nexia BT named as a 'target client' of the two PEPs' companies.
"We are living in a time of state capture, in a kleptocracy in which we have never seen so many institutions being captured by the government,” Dr Azzopardi said.
Because of this, the little man was suffering, as was the case in Satabank, he added.