Satabank Malta suspends USD transactions

Satabank Malta, which opened its doors in March this year, on Wednesday informed its clients that it was ceasing to process outward bank transfers in US dollars (USD), MaltaToday has learnt.

In a letter sent to all its clients, the bank informed them that – until further notice – they would not be able to execute outward bank transfers in USD and that it was working “to solve the problem as soon as possible”.

Efforts to contact Satabank proved futile, but informed sources told MaltaToday that the matter may have been brought up in talks that prime minister Joseph Muscat held in New York, USA, last week over issues that also covered correspondent banking and custodian services affecting Maltese banks.

American banks are limiting their networks to the United States and cutting down channels to the EU, in a bid to render themselves only liable on intra-US transactions.

But the shrinking network is making it harder for European banks to process American payments, and is also affecting Maltese banks, which would have to otherwise rely on other banks.

The letter informing clients of the suspension of outward USD transfers

All banks, especially smaller ones, depend on correspondent relationships with banks in other jurisdictions.

Joseph Muscat visited New York with Finance Minister Edward Scicluna, Malta Financial Services Authority chairman Joe Bannister, and the Central Bank of Malta’s deputy governor, Sandro Demarco, on what was touted as being part of a drive to attract new business to Malta.

MaltaToday was informed that Muscat was expected to market Malta as an alternative for US businesses hit by the Brexit effect and seeking to retain a European base.

Satabank inaugurated its offices in St Julian’s on 11 March, employing 20 people, but with plans to increase its staff to over 100 within 24 months.

On 1 November, it became a corporate member of FinanceMalta, a membership-based, public-private initiative set up to promote Malta as an international financial centre.