Andorra’s Banca Privada d’Andorra Named as Primary Money Laundering Concern

The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has designated Andorra-based Banca Privada d’Andorra (BPA) as a foreign financial institution of primary money laundering concern. This move comes after an investigation found that BPA’s corrupt high-level managers and weak anti-money laundering controls made it an easy vehicle for criminals to funnel proceeds of organized crime, corruption, and human trafficking through the U.S. financial system.

The Investigation

FinCEN conducted an investigation into BPA’s activities and found that the bank was heavily involved in money laundering activities centered in Andorra. The investigation revealed that BPA processed hundreds of millions of dollars in transactions, primarily involving proceeds from Russian and Chinese organized crime groups, foreign corruption, and other criminal activity.

The Designation

FinCEN has proposed a rule that would prohibit covered U.S. financial institutions from opening or maintaining correspondent or payable-through accounts for BPA. The rule also requires special due diligence on correspondent accounts maintained by foreign banks to guard against processing transactions involving BPA.

Consequences of the Designation

• A major blow to BPA’s operations
• A significant step in combating money laundering in the international financial system
• International financial institutions are now required to abide by U.S. laws governing transactions

Praise for Andorran Authorities

FinCEN praised the contributions of Andorran authorities in the investigation and appreciated their commitment to investigating this activity fully.

FinCEN’s Efforts

The designation is part of FinCEN’s efforts to combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.

Quote from FinCEN Director

“BPA’s corrupt high-level managers and weak anti-money laundering controls have made it an easy vehicle for third-party money launderers to funnel proceeds of organized crime, corruption, and human trafficking through the U.S. financial system.” - Jennifer Shasky Calvery, FinCEN Director