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Andorra’s Banca Privada d’Andorra Named as Primary Money Laundering Concern by US Treasury
The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has officially designated Andorran bank Banca Privada d’Andorra (BPA) as a foreign financial institution of primary money laundering concern.
Reason for Designation
According to FinCEN Director Jennifer Shasky Calvery, BPA’s corrupt management and weak anti-money laundering controls have made it an easy vehicle for criminals to funnel illegal proceeds through the US financial system. She stated that “Today’s action is a critical step in addressing this compromised institution’s egregious conduct and sending a message that the United States will take strong measures to protect the integrity of its financial system from criminal actors.”
Bank Activities
BPA, one of five Andorran banks, has processed hundreds of millions of dollars through direct correspondent accounts held at four US banks. FinCEN alleges that BPA’s high-level managers have accepted payments and benefits from criminal clients in exchange for providing financial services tailored to disguise the origins of funds.
Designation Details
The designation is based on evidence of BPA’s activity involving proceeds from organized crime, corruption, and human trafficking, including transactions linked to Russian and Chinese criminal organizations. The bank also processed approximately $2 billion in transactions related to a Venezuelan money laundering scheme.
Proposed Rulemaking
FinCEN has issued a Notice of Proposed Rulemaking (NPRM) that would prohibit US financial institutions from opening or maintaining correspondent or payable-through accounts for BPA, and require them to apply special due diligence to guard against processing transactions involving the bank. The proposal is subject to a 60-day comment period.
Threat of Third-Party Money Launderers
The designation comes after FinCEN delivered notices of its finding and NPRM to the Federal Register, highlighting the threat posed by third-party money launderers to financial institutions. These individuals and organizations use their relationships with financial institutions to provide criminal networks access to the international financial system and lend an aura of legitimacy to their illicit activities.
International Cooperation
The action also recognizes the contributions of Andorran authorities in the investigation and the Mexican government’s efforts to combat money laundering in joint efforts with the United States.
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