Alleged money launderers Matthew Pace and Lorraine Falzon have been barred from taking on any positions in the financial services sector. 

In an announcement on Thursday, the Malta Financial Services Authority said that both Pace and Falzon “can no longer be deemed as being fit and proper” and barred them from holding any approved positions, including as shareholders in entities regulated or licensed by the watchdog.

The decision will remain in effect until criminal proceedings against the pair are concluded. 

Both Pace and Falzon can appeal the decision. 

Pace and Falzon were among 11 people arrested alongside former OPM chief of staff Keith Schembri and former Allied Newspapers managing director Adrian Hillman last year.

Pleaded not guilty to financial crimes

In March 2021, both Pace and Falzon pleaded not guilty to a series of financial crimes, including money laundering, document forgery, accountancy law breaches and criminal conspiracy related to their work at Zenith Finance.

Pace and Falzon were both directors at Zenith, formerly MFSP. While Pace was the managing director, Falzon was the company’s money laundering reporting officer.

The charges followed a magisterial inquiry that was concluded and handed to the attorney general’s office a few days before a series of arrests.  

The inquiry had been requested by then-opposition leader Simon Busuttil back in 2017 amid suspicions of deliberate inaction by the police. 

Busuttil had submitted findings by the Financial Intelligence Analysis Unit into alleged money transfers to Hillman from Schembri through his financial advisers.

Prosecutors believe the transfers were backhanders linked to the sale of printing machines to Progress Press from Schembri’s Kasco Group.

Former Progress chairman Vince Buhagiar has also been charged with receiving similar payments from Schembri.

They all deny any wrongdoing.