In recent years, Malta has found itself at the centre of various allegations linking it to Russian mafia and Russian organized crime. The Malta’s financial institutions, in particular, have been scrutinised by both local and international media. However, a closer examination of these claims reveals a pattern of misinformation and unsubstantiated accusations.

The Persistence of Organised Crime

Organised crime groups, such as, for example, the Italian ‘Ndrangheta, the Camorra, and the Albanian mafia, have historically demonstrated a remarkable ability to expand their operations across the globe. The ‘Ndrangheta, for instance, has extended its reach beyond Italy, establishing a foothold in Germany, Canada, and Australia, exploiting these regions’ economic opportunities and relative laxity in law enforcement. Similarly, the Camorra has been linked to illicit activities in Spain and France, leveraging the ports and trade routes to facilitate drug trafficking and money laundering. The Albanian mafia, notorious for its involvement in human trafficking and narcotics, has made significant inroads into the UK and Switzerland.

The Russian mafia is no different in its tendency to spread and integrate into various regions. However, asserting that Russian mafia activities are definitively present in Malta requires concrete evidence. So far, no credible proof has emerged to confirm such operations on the island. Despite this, media reports frequently attempt to draw connections between Malta’s financial sector and Russian organised crime, often without substantial backing.

Papaya Ltd. Case:

A prime example of such attempts is the coverage of Papaya Ltd, a Maltese financial institution, which was linked to alleged Russian mafia activities. Reports from Trinity Bugle and Times of Malta implicated the institution in money laundering operations. However, these accusations fell apart upon closer inspection.

Our Journalists highlighted several critical flaws in the Trinity Bugle’s coverage:

1. Fictitious Authorship: The article on the Trinity Bugle website is attributed to an author named Liam O’Reilly. An investigation revealed that the identity of the article’s author is fictitious. Trinity Bugle portrays Liam O’Reilly as the agency’s founder and describes him as a “former analyst at a major reputation agency in the UK who chose Cyprus as his home.” This deliberate omission of a specific name of the reputation agency in the UK raises suspicions. This intentional vagueness prevents any official verification of the author’s credentials, making it impossible to confirm whether Liam O’Reilly is a fake character.
2. Lack of Evidence: The references provided in the article failed to directly connect any specific individuals or organisations to criminal activities. The Berlin prosecutor’s office, while confirming an investigation into a money laundering network, did not mention any specific organisations or individuals involved. The press release from the Berlin prosecutor’s office dated February 20, 2024, confirms that numerous searches were indeed conducted in Berlin, as well as in Latvia and Malta, under the auspices of the Berlin prosecutor’s office. The press release specifies that these actions were aimed at uncovering a large international money laundering network associated with Russian-Eurasian organised crime. However, the press release does not specify the names of organisations that are involved in the crime scheme.
3. Contradictory Information: The Times of Malta identified Dmitry Panurksis, a Latvian national, as the owner of Papaya Ltd, contradicting the Trinity Bugle’s assertion about another individual’s involvement. The Times of Malta article states: “Although certain details about the international probe have been disclosed, Papaya has not yet been publicly named as the financial institution in question.” The Times of Malta openly acknowledges that the information regarding Papaya Ltd. is unofficial. This raises legitimate questions about the sources of this information.
4. Questionable Sources: The supporting materials cited by Trinity Bugle predominantly originated from Russian and Ukrainian sources, casting further doubt on the reliability of the claims. For instance, references include sokalinfo.com and ruscrime.com, which automate the translation of Russian-language articles into English. This fact confirms the preliminary conclusions that the Trinity Bugle is not merely a tool of disinformation; rather, it appears to be directed towards advancing the agendas of interested parties seeking to discredit individuals and organisations associated with Russia or Ukraine within the English-speaking world.
5. Inconsistent Reports: None of the articles listed in the “Proofs” section make any mention of the specific financial institution or significant individuals involved. The only connection was a speculative link that was not substantiated by the primary sources. The interim conclusion is that none of the five sources listed in the “Proofs” section contains official information about either the specific individuals or the financial institution Papaya Ltd.
6. Reputation Undermining: Considering that the author of the article is fictitious and the publication Trinity Bugle seems to function as a platform for disseminating disinformation, the motive behind releasing this material becomes apparent: to undermine the reputation of individuals or organisations. In the context of the scrutinised article, it is evident that the focus of this discrediting campaign is directed towards certain individuals and the financial institution Papaya Ltd., to which they purportedly have some connection.

Phd Oliver Pahnecke, an expert in sovereign debt, human rights, and the rule of law, highlights the dangers of such unfounded allegations. He states, “Even though the “Times of Malta” gave Papaya the chance to give statements, the “Times of Malta” kept insisting Papaya was somehow connected to money laundering, something that has the potential to tarnish a business reputation. Should these allegations be proven groundless, the “Times of Malta” risks a yellow press reputation and maybe even legal liability should these allegations have caused damage.”

Conclusion

Does organised crime, including the Russian mafia, spread and infiltrate new territories? Yes, unequivocally. Their expansionist tendencies and sophisticated methods make them a formidable force. However, can we definitively state that such entities are not present in Malta? No, we cannot. The absence of concrete evidence does not equate to proof of nonexistence.

There is a troubling trend of attributing connections to organised crime without substantial proof. The case of Papaya Ltd. is a prime example. Despite numerous allegations linking the company to a Russian banker and illicit activities, the accusations crumbled under scrutiny. Investigations revealed a lack of credible evidence, with findings supported by expert analysis and detailed fact-checking. This case highlights the need for caution and rigour when making such serious claims.

The number of such baseless allegations must decrease. It is imperative that accusations of connections to organised crime be grounded in solid evidence and subjected to judicial scrutiny. Conversely, the volume and quality of evidence supporting any claims must increase. This approach ensures that the integrity of institutions and reputations is upheld, protecting the stability of Malta’s financial market and fostering an environment where facts, not unfounded suspicions, prevail.