Andorra Money Laundering Scheme Exposed: US Financial Crimes Enforcement Network Names Banca Privada D’Andorra as Primary Money Laundering Concern
Investigation Reveals Massive Money Laundering Scheme Involving High-Level Managers at Banca Privada d’Andorra (BPA)
The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has designated Banca Privada d’Andorra (BPA) as a foreign financial institution of primary money laundering concern. This designation follows an investigation that exposed a massive money laundering scheme involving high-level managers at the bank.
Weak Anti-Money Laundering Controls and Corrupt High-Level Managers
According to FinCEN, BPA’s corrupt high-level managers and weak anti-money laundering controls made it an easy vehicle for third-party money launderers to funnel proceeds of organized crime, corruption, and human trafficking through the US financial system. The investigation found that BPA processed hundreds of millions of dollars in transactions related to illicit activities, including corruption in Russia and China.
Threat Posed by Third-Party Money Launderers
FinCEN’s action highlights the threat posed by third-party money launderers, who often use professional gatekeepers such as attorneys and accountants to access financial institutions. In this case, BPA’s high-level managers established financial services tailored to their third-party money launderer clients to disguise the origins of funds.
High-Level Manager Provided Assistance to Russian Money Launderer
The investigation also revealed that a high-level manager at BPA provided substantial assistance to Andrei Petrov, a third-party money launderer working for Russian criminal organizations engaged in corruption. Spanish law enforcement arrested Petrov in February 2013 for money laundering, and he is suspected to have links to Semion Mogilevich, one of the FBI’s “Ten Most Wanted” fugitives.
Shell Companies and Complex Financial Products Used to Siphon Off Funds
FinCEN’s action also describes the activity of a second high-level manager at BPA who accepted exorbitant commissions to process transactions related to Venezuelan third-party money launderers. This activity involved the development of shell companies and complex financial products to siphon off funds from Venezuela’s public oil company Petroleos de Venezuela (PDVSA). BPA processed approximately $2 billion in transactions related to this money laundering scheme.
Bulk Cash Transfers for Human Trafficking Organization
The investigation also found that a third high-level manager at BPA accepted bribes in exchange for processing bulk cash transfers for another third-party money launderer, Gao Ping. Ping acted on behalf of a transnational criminal organization engaged in trade-based money laundering and human trafficking and established a relationship with BPA to launder money on behalf of this organization and numerous Spanish businesspersons.
Significant Contributions from Andorran Authorities
FinCEN’s action describes the significant contributions of the Andorran authorities in this investigation and appreciates their commitment to investigating this activity fully. Director Calvery also praised the contributions of the Mexican government to the joint efforts by the United States and Mexico to combat money laundering.
Designation as a Primary Money Laundering Concern
The designation of BPA as a primary money laundering concern is a significant step in combating illicit financial activities, said FinCEN Director Jennifer Shasky. “We will continue to work with our international partners to disrupt and dismantle these networks.”
Decisive Action Against Corrupt Practices
The US government has taken decisive action against BPA’s corrupt practices, said Richard Weber, Chief of the IRS Criminal Investigation division. “However, when senior managers of these institutions turn to corruption and bribery to enrich themselves, they should not be surprised when special agents from IRS CI come knocking at their door.”