A member of Bank of Valletta’s board of directors is also a senior associate at the bank’s legal firm where she simultaneously provides anti-money laundering advice to BOV’s rival banks and its clients.
Despite the potentially conflicting roles, BOV has told The Shift there was nothing wrong.
Diane Bugeja, who has been co-opted as a board member since 2019 and for which she received €32,000 in 2022, has not replied to questions and instead referred this newsroom to the bank.
Senior BOV officials who spoke to The Shift on condition of anonymity said that Bugeja, a senior associate at Camilleri Preziosi Advocates, is currently chairing the bank’s anti-money laundering committee to ensure there is no repeat of the €2.6 million fine imposed by the Financial Intelligence Analysis Unit.
In parallel to her sensitive role at BOV, Bugeja is also the person responsible for the anti-money laundering department at Camilleri Preziosi Advocates, the bank’s legal advisors.
Making matters worse, the BOV director is also involved in litigation cases on behalf of other banks and financial services providers that compete with BOV by helping them battle fines imposed on them by the regulatory authorities for breaches of anti-money laundering rules.
In the most recent case, in which Lombard Bank won a court case against the FIAU over a massive fine, the BOV director was appearing on Lombard’s behalf in court.
Senior BOV officials insisted that while Bugeja may be qualified for the job, her various roles conflict.
“How can you have a member of your board also representing and fighting in court on behalf of one of your rival banks?” they asked.
When contacted, a BOV spokesperson avoided commenting on the various potential conflicts of interest and instead insisted that her presence on the board was approved by the EU’s supervisory authorities.
“Conflicts of interest, if any, are to be declared by the directors of the Bank, including Bugeja, in accordance with their obligations in terms of the legal framework as well as the internal policies of the Bank. These are subject to regulatory scrutiny,” the spokesperson said without answering whether Bugeja has declared any conflicts of interest.
“Bugeja – as a lawyer – is bound by the Code of Ethics and Conduct for Advocates in Malta as well as the Professional Secrecy Act. Since her appointment to the Board of Directors of the Bank, Bugeja has not been involved in any services provided to the Bank by Camilleri Preziosi Advocates,” the spokesperson stressed.
The managing partner of Camilleri Preziosi is Louis de Gabriele, the President of the Chamber of Advocates.
It is so far not known what Bugeja’s position was when the board opted to not appeal the FIAU’s recent fine and instead paid out the enormous €2.6 million – to shareholders’ detriment.
The bank is also currently facing a court challenge from one of its other board members, James Grech, who is accusing it of spreading “lies and false declarations” among regulators including the Malta Financial Services Authority and the European Central Bank.
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Just WHO are the bigger crooks- the criminals, or the lawyers. The dividing line is VERY thin.
Aren?t these appointment supposed to be approved by the ECB?
Crooks everywhere you look, but in these cases the situation is not desperate.
What are they smoking? Sounds pretty good!
Il kpiepel ta Prof Edward de Bono.
Diane Bugeja is a former MFSA official. That completes the puzzle.
NO it’s only normal in mafiamalta.
Oink oink in other words
BOV paid FIAU?s recent enormous fine of ?2.6 million ? to shareholders? detriment. Shareholders are not responsible for mismanagement. Such fines should be paid through Director’s fees and top management bonuses.
Another lawyer having to work weekends, to cope with all her responsibilities!!!!
Jaqq. Tista’ l-Kamra tal-Avukati tiehu passi pls? Sospensjoni tal-warrant u investigazzjoni asap.
Perhaps the lady can win a case against the FIAU for BOV like she did with othors. Just a thought.
Another one in the series : “Only in Malta.com” ?
Passi? Her boss is the President of the Chamber of Advocates! He too had a conflict of interest in this, because Diane got the work because she works at his law firm!!! X’passi!!!! King Louis the CPinth heyyy .. il-banek ta’ Malta kollha f’idejhom! Arrogant pigs. So many snouts to feed.
Shareholders choose directors so they are indirectly responsible.
Why? Her clients aren?t complaining ? What?s important is that she does not disclose confidential information ay
The fact that she also services other clients makes her even more suited to
chair this committee, rather than someone in house whose experience is limited to one bank! What?s important is that she does not disclose confidential information from one bank to another
That is a blatant conflict of interest and if they can’t see it they should be sacked.
If a board member of BOV is actively representing and fighting in court on behalf of Lombard (and probably others), it raises concerns about divided loyalties. She may have access to sensitive information about BOV, which could potentially be used to the detriment of BOV’s shareholders. In other words, if she is paid more by Lombard, wouldn’t she want to see BOV crumble?
This undermines the trust and confidence of BOV’s shareholders, stakeholders, and the public in the bank’s ability to act in the best interest of its shareholders. Why wasn’t the 2.6 million fine appealed from, for example? A very strange and rare move by BOV’s board. Possibly there was some incentive to do so.
Additionally, a BOV board member who represents rival banks may become privy to confidential information and trade secrets of BOV, creating a risk of misuse or disclosure of sensitive data, which can have severe legal consequences.
The managing partner of Camilleri Preziosi is Louis de Gabriele, the President of the Chamber of Advocates….also an ex-BOV employee and legal advisor to the Bank!!
This is definitely a conflict of interest, but money seems to blind people from every walk of life!!!
Steve please be factual. Diane was co-opted and that simply means that she was not chosen by the shareholders.
Let us delve deeper into the potential conflicts of interest and we also request the bov speaker to resign:
1) conflicting roles. Diane Bugeja holds various positions that intersect with her roles at Bov and Camilleri Preziosi Advocates. As a senior associate at the law firm she is responsible for the bank’s anti money laundering department providing advice to rival banks and their clients. Simultaneously she chairs bov’s anti money laundering committee making decisions that impact the bank’s compliance with regulations. This dual role raises concerns about impartiality and whether she can act in the best interest of both entities.
2) competing with Bov – Bugeja’s involvement in litigation cases on behalf of other banks and financial services providers that compete with Bov further complicates the matter. Representing a rival bank namely Lombard bank while being a director at Bov raises questions about loyalty and the potential for confidential information to be shared inadverteny or intentionally
We request that Diane Bugeja resigns with immediate effect and in the eventuality that no action is done in the next week we shall be seeking our shareholder rights through the request of a formal Extraordinary General Meeting
As a board member at Bov does Bugeja has access to confidential information about the bank’s strategies, operations and last but not least the clients of Bov. Since she advises clients of Camilleri Preziosi Advocates whereby she is a senior associate than she has for sure a conflict of interest as the advice given to Bov’s rivals could potentially benefit them at Bov’s expense.
While the bank spokeperson emphasised that conflicts of interest should be disclosed such a matter is not simply a tick box exercise whereby disclosure is simply made, as this goes oltre. If Diane Bugeja does not resign the Bank would be discriminating if for instance following this information another director on the bov board decides to offer consultancy services to a rival bank. What will the bov spokeperson do in this instance.
The bank also claims that Bugeja’s presence on the board was approved by the supervisory authorities. However as stated in the article concerns raised by senior Bov officials and others suggests that further examination of the approval process may be necessary to assess the adequacy of oversight.
To conclude it is simply naive to try not to understand that Bugeja was not involved in the decision making process of the 2.6 million fine. This certainly raises doubts about the impartiality of the board’s choices
and whether her other roles influenced the outcome.
Last conclusion in all this unprofessional confusion is to ask the FIAU who is the spokesperson of Bov with their department. Well guess who? and this will certainly lead to more investigative work to continue the big but interesting jigsaw puzzle