The European Central Bank (ECB) has shut down of Malta’s Pilatus Bank after the lender was accused of corruption, the country’s financial watchdog said today.

The scandal, which accused the private bank of processing corrupt payments, was uncovered by Maltese journalist Daphne Caruana Galizia who was murdered in October last year.

The accusations against the bank included that it had facilitated money laundering for senior Azeri and Maltese figures.

Maltese financial regulators recommended withdrawing the banking licence in June.

“Further to the authority’s proposal to the European Central Bank to withdraw the authorisation of Pilatus Bank as a credit institution, the ECB’s governing council has decided to withdraw the authorisation of Pilatus Bank with effect from today,” the Malta Financial Services Authority said today.

City AM has contacted the ECB for comment.