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Bank of Spain intervenes in Banco de Madrid over U.S. money laundering allegations

Xinhua, March 12, 2015 Adjust font size:

The Bank of Spain (BOE) announced it was intervening in Banco de Madrid as a result of the bank being 100-percent owned by the Andorran bank Banco Privada de Andorra (BPA), which has been implicated in money laundering operations by the U.S. Treasury Department, local media reported Wednesday.

The U.S. Treasury said the BPA was a "foreign financial institution subject to primary money laundering concern."

The U.S. Financial Crimes Enforcement Network also issued a statement highlighting "corrupt high-level managers and weak anti-money laundering controls," which made the BPA an "easy vehicle to funnel proceeds of organized crime, corruption and human trafficking through the U.S. financial system."

The Andorran National Finance Institute consequently intervened in the BPA.

In the wake of these events, the BOE issued a press statement stating "in order to ensure the continuity of this company (Banco de Madrid), taking into account the decision adopted by the U.S. Treasury Department, the Executive Committee of the Bank of Spain in its meeting has agreed to carry out the intervention into the Banco de Madrid." Endit