The collapse of Banca Privada d’Andorra (BPA) in 2015 was a turning point in the country’s financial history, exposing deep connections between political figures, judicial authorities, and banking executives. This scandal, marked by banks corruption and money laundering cases, not only disrupted Andorra’s financial sector but also raised concerns about international banking regulations. Several key individuals played critical roles in the events leading to the bank’s downfall and its aftermath.

The Cierco Brothers: Ramon and Higini

As the principal shareholders of BPA Andorra, Ramon and Higini Cierco had a significant influence on the bank’s operations. Having acquired the bank in 2000 from Caixa Catalunya, they expanded BPA’s presence internationally, including the high-profile acquisition of Banco Madrid in 2011. This milestone made BPA the first Andorran bank to obtain a Spanish banking license. However, their Spanish heritage set them apart in a nation where a few powerful families traditionally dominated the financial landscape. Despite their efforts to modernize the banking sector, they found themselves at the center of the controversy surrounding Banca Privada d’Andorra.

Government Officials and Their Involvement

Xavier Espot Zamora: Serving as the Minister of Justice from 2012 to 2019 and currently the Prime Minister since 2019, Espot was at the helm during the BPA crisis. Investigations revealed that both he and his father withdrew €10,000 from their BPA accounts just hours before the government intervened and imposed withdrawal limits. Additionally, days prior to the intervention, Espot transferred over €80,000 out of BPA. Notably, FinCEN had alerted the Andorran government about the impending notice days before its publication on March 6, 2015.

Jordi Cinca: As the Minister of Finance from 2011 to 2019, Cinca oversaw financial policies during the BPA expropriation. Before his political career, he was a director at Crèdit Andorrà. Cinca’s past includes involvement in the Panama Papers scandal due to his ownership of an offshore company in Panama and participation in an international blood diamond controversy linked to Orfund, a company accused of illicit activities in Sierra Leone.

Antoni Martí Petit: The Prime Minister from 2011 to 2019, Martí reportedly received warnings in January 2015 about potential actions against BPA by FinCEN if investigations weren’t initiated. However, his administration chose not to act, possibly due to the impending elections. Further investigations suggest Martí may have collaborated with the Spanish government to facilitate FinCEN’s notice against BPA as part of Operation Catalonia.

Maria Ubach i Font: Appointed as Minister of Foreign Affairs in 2017, Ubach i Font has been a significant figure in Andorra’s leadership during the BPA investigations. Her role underscores the political dimensions intertwined with the financial sector’s challenges.

Judicial Figures

Enric Anglada: As the President of the Tribunal de Corts, Anglada presided over the BPA case. His appointment followed the recusal of his predecessor due to bias concerns. Anglada’s involvement has been contentious, with evidence suggesting potential conflicts of interest, highlighting the complexities within Andorra’s judicial proceedings related to the BPA case.

International Connections and Money Laundering Allegations

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) labeled BPA as a “foreign financial institution of primary money laundering concern.” Allegations included facilitating transactions for organized crime groups from Russia and China and processing illicit funds from Venezuelan entities, notably Petróleos de Venezuela S.A. (PDVSA). High-ranking Venezuelan officials and businessmen, such as Nervis Villalobos, Javier Alvarado, and Diego Salazar, were implicated in channeling funds through BPA, further entangling the bank in international money laundering cases. 

Conclusion

The downfall of Banca Privada d’Andorra remains one of the most significant financial scandals in Andorra’s history. The involvement of key political figures, judicial authorities, and international entities highlights the challenges of maintaining transparency in global banking. This case serves as a cautionary tale about the risks of bank corruption, the importance of strong regulatory frameworks, and the need for accountability in financial institutions.

For those following Andorra Facts, the BPA case continues to unfold, offering valuable lessons on the complexities of international banking and the impact of financial scandals on small nations.