Issue link: https://maltatoday.uberflip.com/i/1425206
3 maltatoday | WEDNESDAY • 3 NOVEMBER 2021 NEWS NICOLE MEILAK MALTA'S financial greylisting has left no major impact on the real economy, BOV Chairman Gordon Cordina said on Tues- day. During a company press conference, Cordina explained that the recent greylist- ing has not had major impacts on the real economy. Having said that, he remarked that the greylisting has been a short-lived experience. "If excessively prolonged, it can start having effects on the wider economy," he warned. However, sectors that don't currently rely on credit or bank liquidity could be most af- fected by such shocks, Cordina said. "The bank augurs, like other operators in Malta, that the situation will be resolved in the quickest possible way." Similarly, BOV operations have been left unscathed by the greylisting, according to CEO Rick Hunkin. At the same conference, Hunkin ex- plained that BOV works closely with cor- respondent banks and bank partners, the majority of which have already factored in the possibility of greylisting. He admitted that some banks have ex- pressed reservations in processing pay- ments from Malta. However, these are banks that BOV are not in direct partner- ship with. "This doesn't mean that there has been no impact. All international banks have their own risk appetite," he said. The greylisting comes with its bureaucrat- ic downsides. According to Hunkin, there has been an increase in paperwork and in the justification of international payments. There were also isolated cases where pay- ments had to be returned back to the cus- tomer. At present, there is no direct indication of any concerns. But Hunkin warned that a prolonged greylisting would force interna- tional banks to reevaluate their positions on Malta. "We're hopeful that Malta will make good progress," he said. In June, Malta became the first EU mem- ber state to be greylisted by the internation- al Financial Action Task Force. This spurred worry among the business community, who feared that the greylisting will leave a negative impact on the Maltese economy. BOV makes €20.6 million pre-tax profit in third quarter BOV Group registered €20.6 million in profit before tax during the third quarter of 2021. Covering the first nine months of the year, the bank delivered a €46.5 million profit before tax. This is up by €5.9 million com- pared to the same period in 2020. Revenues is also up by 4% compared to 2020, with €172.1 million registered. The bank attributed this to improved volumes in the retain sector, particularly in home lending, cards, and payments. Net loans and advances to customers in- creased by 5% during the first nine months of the year. The bank noted growth in both business and home loans, with the latter be- ing the biggest driver. At the press conference announcing the results, chief executive officer Rick Hunkin said card and payment transaction levels have continued to rise. People are moving to more electronic banking means, and there has been a reduction in cheque usage. Fraud refunds cost bank €1.2 million Operating costs were 1% higher in the first nine months of the year compared to 2020. Part of the 1% increase in operating costs was driven by refunds to customers target- ed in fraud scams. In fact, the entire cost of these refunds amounted to €1.2 million. Police issued several warnings over the year on fraudulent phone calls and text messages. In just 24 hours in June, scam- mers were able to rob over €50,000 from 40 victims. In these scams, criminals use domestic en- tities, such as the postal service or banks, to send fake warnings that redirect victims to a fraudulent link. Here, the victim is asked to provide their credit card details. The data provided is then used by scammers to withdraw cash amounts from personal bank accounts. At the start of the COVID-19 pandemic, the Financial Action Task Force (FATF) had warned that criminals are taking ad- vantage of the pandemic to carry out finan- cial fraud and exploitation scams. Greylisting left no impact on real economy, BOV chairman says BOV Chairman Gordon Cordina CONTINUED FROM PAGE 1 Galea said the government is not solely to blame for the problems sur- rounding the trade of exotic animals and the lack of proper regulations for zoos. "I will not blame government alone, because it is a sin which was inher- ited," he said, adding that past Na- tionalist administrations were also to blame. Government proposed the prohibi- tion of big cat cub petting at zoos in a White Paper published last October. But just 24 hours later, the clause was removed, following outrage by zoo- keeper Anton Cutajar. Zoo regula- tions have so far remained the same despite the White Paper proposals. "Minister, the White Paper was good, but you stopped short because of that bully," Galea said referring to Cutajar. "We need to regularize the sector." He said MPs have become "clowns" for stopping short of banning zoos in the country. "We voted against circuses, but we don't condemn the zoos which are continuing to grow and grow," Galea said. He also questioned how exotic an- imals are being imported into the country. "How did they end up here? How are there animals on the brink of ex- tinction roaming in zoos?" he ques- tioned. The MP also mentioned a case he was informed of where an individual is housing lions in his basement. "It's unbelievable." He said people should "boycott" zoos if they truly love animals. "Do not go to zoos, don't take your children to zoos, I don't even go to weddings where they have exotic zoos as part of the venue," Galea said. "Malta is not a good place to have zoos. We don't have experts on these animals, and they are not being cared for properly." He also said the "excuse" that the animals were born in captivity does not hold. "You are encouraging the abuse if you think like that," he said. A series of questions by MaltaTo- day to the Animal Rights Ministry on when it plans to implement the public consultation on zoos have so far remained unanswered despite a number of reminders. MP urges government not to give in to 'bully zookeeper' Anton Cutajar Anton Cutajar