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ARTICLE · 13 AUGUST 2026

A Landmark Judgment For Secured Creditors

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A Maltese court has ruled that BNF Bank plc can enforce its pre-existing security rights over property subject to a seizing and freezing order, marking the first instance where the Civil Court (Asset Recovery Section) released assets to protect a bona fide secured creditor. The judgment establishes that banking institutions holding legitimate security interests acquired in good faith are not automatically overridden by asset recovery measures.

MaltaFinance and Banking
Kevin Cutajar
Kevin Cutajar
Frank B. Testa
Frank B. Testa
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BNF Bank plc Obtains the Release of Property from the Effects of a Seizing and Freezing Order

This appears to be the first instance in Malta in which the Civil Court (Asset Recovery Section) released property from the effects of a seizing and freezing order(the “Order”), to enable a banking institution to enforce pre-existing security rights. The judgment delivered on the 14th of May 2026 in the names BNF Bank plc vs Uffiċċju għall-Irkupru tal-Assi (Asset Recovery Bureau) by the said Court as presided by Mr. Justice Henri Mizzi, has now become res judicata and represents an important development in the Maltese asset recovery sphere and in the protection of bona fide secured creditors.

The case arose in the wake of the More Supermarkets saga, after the Order was issued under applicable anti-money laundering law against Ryan Schembri, Cassar & Schembri (Marketing) Ltd. and Food World Ltd., prohibiting the transfer, disposal or burdening of their assets, pending the on-going criminal

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