Financial Crime World

Andorra’s Top Bank Executive Arrested on Money Laundering Charges

Shocking Arrest in Andorra City

In a startling development, Joan Pau Miquel Prats, CEO of Banca Privada d’Andorra (BPA), was arrested on money laundering charges by Andorran authorities on Friday night. The arrest came following allegations from the United States that funds were laundered through the bank for criminal groups from China, Russia, and Venezuela.

BPA Designated a “Primary Money Laundering Concern”

BPA, one of Andorra’s biggest private banks, was officially classified as a “primary money laundering concern” by the U.S. Treasury Department on Thursday. As a result, the bank could be severed from the U.S. financial system.

Arrest and Seizure of Control

  • Andorran authorities seized control of the bank and appointed temporary administrators.
  • The bank’s board was suspended, and three members of its management team were dismissed.
  • Spanish and Panamanian authorities took over BPA’s branches in their respective countries.
  • The Spanish board of directors also resigned.

U.S. Allegations

BPA executives are accused of money laundering, including transactions totaling over $2 billion that were allegedly taken from Petroleos de Venezuela SA.

  • One high-level executive is said to have accepted “exorbitant commissions” to develop shell companies that helped launder the Venezuelan company’s money.
  • BPA executives assisted two Russian and Chinese men who were arrested in Spain on charges of money laundering.
  • Numerous Spanish business owners also used the bank for money laundering activities.

Response from Andorran Finance Agency

The Andorran finance agency stated that the takeover aimed to preserve the “stability of the entity and its operations.” Transactions for clients would be carried out by Monday.

Consequences for Andorra

Andorra, a small European principality with a population of 85,000, has faced consequences from the bank crisis.

  • The country has faced a credit rating downgrade from Standard & Poor’s and Fitch Ratings.
  • BPA is a significant financial contributor to the country, making the situation particularly concerning.

Background on Andorra

Andorra is a popular tourist destination for skiing, shopping, and banking. Despite its small size, it has faced significant challenges following the BPA scandal.