In a letter addressed to Andorra’s Prime Minister, Xavier Espot, Francisco Martínez, the former Secretary of State for the Interior of Spain, made a bold claim: the Andorran government itself supplied the information that led to the US Department of the Treasury’s FinCEN notice against BPA (Banca Privada d’Andorra). This notice ultimately paved the way for the government to seize control of the bank.

Martínez alleged that “the intelligence underlying FinCEN’s note did not originate from its own sources or even from Spanish authorities but was directly provided by the Principality of Andorra.” He added that if judicial investigations determine the information was inaccurate, deliberately exaggerated, or manipulated, “the explanation lies in Andorra.”

BPA’s former shareholders have also contested the FinCEN notice, asserting that the cases it cited had already been reported to Andorran financial regulators without raising any prior concerns.

Martínez further claimed that BPA’s downfall was fueled by internal rivalries within Andorra’s banking sector and an effort by the authorities to “demonstrate an exemplary response to external financial partners.”

This raises troubling questions about Andorra’s role in the scandal. As these allegations come to light, they amplify concerns over the fairness and transparency of Andorra’s financial regulations, with significant implications for investor confidence and international relations.

This article was originally published by La Vanguardia on February 14, 2023.