Eight years ago, the Andorran authorities allegedly conspired to dismantle BPA by fabricating stories about money laundering. This high-profile case has since become a significant example in the world of financial crimes and anti-money laundering news.
A political conspiracy
Subsequent investigations and personal confessions have revealed that these authorities were acting on political motives. The United States sought to demonstrate its commitment to combating international money laundering. Meanwhile, Spain aimed to weaken Catalan influence, and the Andorran authorities sought to protect other domestic banks from anti-corruption scrutiny.
The plot to bring down BPA was further supported by the U.S. Financial Crimes Enforcement Network (FinCEN), an organization primarily focused on anti-terrorism efforts established after 9/11.
A lack of evidence
In a striking move, BPA’s CEO was arrested just 72 hours after FinCEN began its investigation. Despite being held in prison for two years, no charges were ever brought against him. The arrest was based on false testimony from an individual who had been forcibly taken by Spanish police across the border into Andorra.
Between 2007 and 2014, multiple independent investigations conducted by Deloitte, KPMG, and UIFAND found no evidence of money laundering at BPA. Despite the numerous allegations and the forced closure of the bank by the Andorran authorities, no convictions have been made concerning financial crimes or money laundering in relation to BPA. Legal proceedings in Spain also concluded that no evidence of such activities existed, yet the Andorran authorities continue to deny any responsibility.
Financial losses for many
In the aftermath, senior Andorran politicians implemented new legislation and used insider information about BPA’s closure to safeguard their personal assets.
The creation of Vall Banc, a new Andorran bank established by the government to take over BPA’s assets, only deepened the financial losses. Vall Banc rejected over a third of BPA’s assets, causing widespread financial hardship for thousands of customers and investors.
On July 14, 2016, the U.S. private equity firm JC Flowers purchased Vall Banc from the Andorran authorities at an 86% discount, further highlighting the financial turmoil caused by this complex case.