Timeline
On March 6, 2015, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a notice identifying BPA as a foreign financial institution of primary concern for money laundering under Section 311 of the USA PATRIOT Act. Along with this notice, FinCEN issued an order prohibiting U.S. financial institutions from opening or maintaining accounts or processing transactions involving BPA. Notably, BPA was not informed of the accusations beforehand, nor was the bank given an opportunity to respond before the notice was made public. As a result, the bank was abruptly "shut down" without any prior warning.
In March 2015, following the publication of FinCEN's notice, BPA and its subsidiaries were expropriated. In Andorra, the Andorran National Institute of Finance (INAF), now called AFA, took control of BPA and placed it under the management of the State Agency for Banking Resolutions (AREB). Meanwhile, in Spain, Banco de España, the country’s central bank, assumed control of Banco Madrid and placed it under the supervision of the Anti-Money Laundering Supervisory Authority (SEPBLAC).
On April 21, 2015, Anton K. Smith, the economic advisor at the US Embassy in Madrid, disclosed that the United States had warned Andorra about broader money laundering issues in the country, which ultimately led to FinCEN’s notice against BPA. Speaking at an event in Madrid, Smith expressed the US’s frustration with Andorra’s slow progress in improving money laundering regulations. He mentioned that the US had raised concerns, particularly with regard to the Moneyval and FAFT cases, in a letter to then-Foreign Minister Gilbert Saboya. Smith explained, "The Andorran authorities were not responding with the urgency we expected, which is why we ultimately had to take strong action." He further clarified in a declassified email that FinCEN’s notice was related to broader concerns, stating, "I was referring to a general demarche sent to the Andorran authorities in August of last year, which contributed to the eventual 311 action."
Ramon and Higini Cierco initiated a lawsuit against the U.S. Treasury and FinCEN, claiming that the agency's actions against BPA were unjustified and unconstitutional. The Ciercos argued that FinCEN lacked a valid basis for issuing its notice under Section 311 of the Patriot Act, and the notice was fundamentally flawed, as it failed to present a sufficient informational foundation. It later became apparent that FinCEN’s actions were not based on actual evidence against BPA but were driven by frustration over Andorra's failure to implement comprehensive anti-money laundering reforms. In response, the Ciercos sought legal intervention in U.S. courts to overturn FinCEN's order and regain control of the bank's remaining assets.
While the lawsuit against FinCEN was ongoing, the U.S. government announced in February 2016 that it was withdrawing its money-laundering notice against BPA. The justification for this withdrawal cited Andorra’s actions in dissolving the bank and its subsidiaries, rendering BPA no longer a threat to the U.S. financial system. The withdrawal became official on March 4, 2016. The Ciercos hailed this as a significant victory for BPA’s customers, employees, and shareholders, seeing it as a vindication of their stance. However, they cautioned that the withdrawal was a tactical move by FinCEN to avoid judicial scrutiny of its original decision. By March 11, 2016, FinCEN was scheduled to defend the legality of its actions in court, but alongside the withdrawal, the agency filed a motion to dismiss the case, preventing further legal proceedings.
After FinCEN withdrew the notice, the U.S. District Court for the District of Columbia granted the agency’s motion to dismiss the lawsuit. The court ruled that any dispute between the parties had become moot due to the withdrawal of the notice. The Ciercos appealed the dismissal, continuing their fight for legal accountability.
In June 2016, the Cierco family took legal action against the Andorran Government and the Andorran National Institute of Finance (INAF), seeking over €364.6 million in damages. This lawsuit was prompted by the significant harm caused to BPA due to the reckless, negligent, and arbitrary actions of the bank's administration following its expropriation by the Andorran authorities after FinCEN's notice. Despite repeated warnings and requests to avoid destructive actions, the mismanagement by Andorran officials led to substantial financial losses, as confirmed by two independent valuators.
In July 2016, the Andorran government formalized the sale of Vall Banc to the U.S. investment firm J.C. Flowers & Co. Vall Banc was established as a bridge bank by AREB to transfer what were deemed BPA’s 'non-toxic assets.' The Cierco family criticized the sale, asserting that “J.C. Flowers has displayed a disregard for transparency and credibility within the financial community, and their selection underscores the rigged and illegal process orchestrated by the Andorran Government.”
On May 23, 2017, the U.S. District Court for the District of Columbia upheld its earlier decision to dismiss the Ciercos’ lawsuit against FinCEN, following the agency's withdrawal of its notice against BPA. The court denied the appeal, reasoning that the withdrawal rendered the Ciercos' claims moot. Additionally, it noted that the opportunity to influence the position of Andorran authorities had closed after the announcement of the sale of BPA's assets.
On June 28, 2017, the Magistrate of the Commercial Court No. 1 in Madrid announced that Banco Madrid (BPA) was “absolved and dismissed” from all money laundering claims brought forth by Spain’s Public Prosecutor. The judge determined that the investigation by Spanish authorities lacked evidence of any criminal activity by BPA related to money laundering.
On November 20, 2018, Spain's National Court (Audiencia Nacional) found BPA’s financial director, Santiago Rosello, not guilty of money laundering charges. The court concluded that Rosello's involvement with Andrey Petrov did not constitute money laundering or any punishable offenses. BPA had previously denied wrongdoing and reported Petrov’s activities to Andorran authorities in an audit report and a letter to INAF in 2014.
The Examining Magistrate's Court No. 38 in Spain dismissed the case against BPA on January 2, 2019, due to a lack of evidence. The court noted that there was no proof that Banco Madrid facilitated money laundering activities. Furthermore, it highlighted that BPA's control measures for preventing money laundering had improved after acquiring the entity. A report by Spain's financial authority, SEPBLAC, also confirmed that Banco Madrid had appropriate control procedures in place.
On July 16, 2019, the Andorran Institute of Human Rights (IDHA) and BPA’s shareholders lodged a complaint against various Spanish officials for their roles in the takeover and liquidation of BPA. They accused these officials of “attacking Andorran sovereignty” and pressuring BPA’s CEO to divulge financial information about Catalan politicians. The complaint claims that these actions constituted threats, coercion, extortion, blackmail, and falsification of documents. Former President Mariano Rajoy and several cabinet members were named in the claim, which also called for testimony from key Andorran officials, including former Prime Minister Antoni Marti.
On October 22, 2019, the Regional Court of Madrid rejected an appeal from Spain’s Public Prosecutor regarding the dismissal of the BPA case. The court reaffirmed that there was no evidence indicating that Banco Madrid engaged in money laundering activities.
On August 18, 2021, the Standing Committee of the Commission for the Prevention of Money Laundering and Monetary Infringements, under Spain’s Ministry of Economic Affairs, dismissed proceedings against BPA and cleared the bank of any wrongdoing regarding Andrey Petrov. The committee concluded that BPA adhered to the correct procedures for preventing money laundering.
On January 4, 2022, the Cierco family filed a lawsuit against Spain's central bank, Banco de España, seeking €141 million in damages. This claim stems from the expropriation and liquidation of Banco Madrid and emphasizes that BPA and its directors have been repeatedly cleared of any wrongdoing by Spanish courts. The lawsuit also references the threats and coercion faced by BPA from Spanish authorities during Operation Catalonia.
In February 2022, the long-awaited trial against BPA, known as the 'BPA Case' or the 'Gao Ping Case,' resumed in Andorra after three years of delays. Originally slated to start in 2018, the proceedings were postponed multiple times due to changes in legal representation and the Covid-19 pandemic. The case now involves 25 former BPA directors, who could face up to eight years in prison, ten years of professional disqualification, and a fine of €70 million if found guilty. Andorran authorities allege that BPA aided Chinese mobster Gao Ping and his associate Rafael Pallardo in money laundering. However, the bank's directors maintain their innocence, noting that Pallardo was dropped as a client after acquiring Banco Madrid due to tax evasion concerns.
On May 16, 2022, Spanish newspaper El País published recordings from former Spanish National Police Commissioner José Manuel Villarejo, which revealed a covert operation aimed at undermining the Catalan independence movement, known as Operation Catalonia. The recordings confirmed that the Spanish government had targeted and threatened BPA to extract incriminating information about former Catalan President Jordi Pujol. Villarejo's audios also corroborated BPA's claims that Spanish officials pressured the bank’s director to leak compromising information and threatened action against BPA using the American administration (FinCEN) as leverage.
On June 13, 2022, Andorra's Examining Magistrate Number 2, Stéphanie Garcia, indicted former Spanish Prime Minister Mariano Rajoy and his Interior Minister, Jorge Fernández Díaz, for allegedly pressuring BPA as part of Operation Catalonia. This investigation stems from a 2019 complaint filed by the Andorran Institute of Human Rights, which included Higini Cierco and the Pujol family as injured parties. The investigation is still ongoing.
On June 14, 2022, Spain’s Congress of Deputies approved the establishment of a commission to investigate former Prime Minister Mariano Rajoy and his government’s interference in Andorra's sovereignty during Operation Catalonia. The inquiry is set to begin in September 2022.
On September 21, 2022, former BPA CEO Joan Pau Miquel submitted a complaint to Spain’s Audiencia Nacional against former Interior Minister Jorge Fernández Díaz, Deputy Minister Francisco Martínez, and José Manuel Villarejo for alleged extortion, coercion, and blackmail. The complaint details attempts by members of the Spanish Patriotic Police to obtain confidential banking information protected by Andorran law regarding various Catalan leaders and their families.
On September 22, 2022, Spain’s Congress of Deputies approved the initiation of an inquiry to investigate the actions of former Prime Minister Mariano Rajoy’s government in relation to Operation Catalonia. The investigation will explore potential links to FinCEN and other international organizations that may have influenced interventions against banking entities.
On November 22, 2022, Higini Cierco, the former majority shareholder of BPA, filed a criminal complaint against Andorran Prime Minister Xavier Espot Zamora, accusing him of fraud, influence peddling, and misuse of public funds regarding the management of the BPA case.
On December 15, 2022, The Bridge Tank released a report titled ‘The Case for Increased Financial Cooperation in Europe – The EU and the Micro-States,’ branding Andorra as a “severe threat to the rule of law in Europe.” The report highlighted BPA's takeover as indicative of the fragility of the rule of law in Andorra, where investors face significant risks from political interference.