European Union's General Court has dismissed an application filed by Malta-headquartered Pilatus Bank plc which tried to annul the European Central Bank's 2018 decision to withdraw the bank's authorisation to act as a credit institution in the bloc.

Pilatus Bank's license had been revoked after the ECB had banned it from operating after its majority shareholder was arrested for allegedly funnelling cash into Iran.

In the detailed European General Court statement, it rejected all 11 of the bank's arguments to overturn out the ECB's decision.

The EU General Court said: "Pilatus Bank plc and Pilatus Holding Ltd are respectively, a less significant credit institution established in Malta which is subject to direct prudential supervision by the Malta Financial Services Authority (MFSA) and the direct majority shareholder of that credit institution.

"According to a press release published by the United States Department of Justice on 19 March 2018, Mr Ali Sadr, the shareholder of the first applicant who indirectly holds 100% of its capital and voting rights, was arrested in the United States on six charges relating to his alleged participation in a scheme in which approximately USD 115 million in payments to finance a project in Venezuela were illegally funnelled for the benefit of Iranian individuals and undertakings."

The full statement by the EU General Court can be read here.