Banca Privada d'Andorra: A Global Bank with a Questionable Reputation

Banca Privada d'Andorra (BPA) was a global bank with a presence in over 60 countries.

It was founded in 1970 in the principality of Andorra, a small European country nestled in the Pyrenees mountains.

BPA's global reach was impressive, but its reputation was marred by allegations of money laundering and other illicit activities.

The bank's high-profile clients included wealthy individuals and companies from around the world.

In 2015, BPA was shut down by the Andorran authorities after a Spanish court accused it of laundering money for a Mexican crime cartel.

Banca Privada d'Andorra was created in 1957 under the name of Banca Cassany and began its activities in 1958.

Caixa Catalunya became a shareholder in 1993, leading to the entity's name change to Banca Privada d'Andorra, SA.

By 2000, Caixa Catalunya was no longer a shareholder, and the bank became controlled by 100% Andorran capital.

BPA started an international expansion plan in 2003, which led to a presence in six countries.

In 2011, BPA acquired Banco Madrid, a private banking entity owned by Kutxa, becoming the first Andorran entity to obtain a banking license in Spain.

BPA completed the purchase of the securities firm Interdin S.A. in 2011, which was ninth in a ranking of companies per trading volume.

The expansion process in Spain continued in 2012 with a 50% increase in managed resources volume by purchasing the asset managing company Nordkapp from Banco de Valencia.

Banco Madrid, BPA's Spanish subsidiary, announced the purchase of Liberbank Gestión in 2013, consolidating collective investment products into a single company, Banco Madrid Gestión de Activos.

In 2014, Banco Madrid purchased Banco Mare Nostrum (BMN) and started managing its investment funds, with the incorporation of BMN Gestión de Activos, Banco Madrid took its place in the Inverco ranking among the Top 15 institutions in volume of assets under management.

Banca Privada d'Andorra was implicated in the Pandora Papers, revealing over 200 shell companies established by Panamanian law firm Alemán, Cordero, Galindo & Lee (Alcogal) for the bank.

The US Department of the Treasury identified BPA as a "primary money laundering concern" in March 2015, involving four US correspondent banks, criminal groups in Russia and China, and Venezuelan money launderers.

BPA's board of directors and three managers were suspended by the Institut Nacional Andorrà de Finances in March 2015, and the CEO Joan Pau Miquel Prats was arrested and imprisoned.

The US Treasury Financial Crimes Enforcement Network (FinCEN) director Jennifer Shasky Calvery stated that corrupt management and weak anti-money-laundering controls made BPA an easy vehicle for third-party money launderers.

Withdrawals for BPA account holders were capped at €2,500 per week, and the bank's assets were nominally assessed at €3 billion.

The non-toxic assets of the bank were put into a newly created Vall Banc, which was sold to J.C. Flowers in 2017.

More than 500 depositors grouped together to initiate a class action against the government of Andorra for alleged mismanagement and gross misconduct in their management of BPA.

The government of Andorra hired PriceWaterhouseCoopers (PWC) to carry out an audit of the bank's depositors, which cost 30 million Euros, representing 14% of the BPA Group's total available assets.

Banca Privada d'Andorra's organizational structure was quite complex, with a president and several other key members.

The president of the last administration was Higini Cierco Noguer, who held the position.

Joan Pau Miquel Prats served as the delegated counselor, overseeing various aspects of the bank.

Frederic Borràs Pàmies and Ricard Climent Meca were also counselors, contributing to the bank's decision-making process.

Bonaventura Riberaygua Sasplugas and Rosa Castellón Sánchez rounded out the administrative team, with the latter serving as secretary.

Here's a list of the key members of the administrative team:

Cas Pujol is a high-end restaurant located in Girona, Spain, founded by the three-Michelin-starred chef Ferran Adrià's protégé, Eduard Xatruch.

The restaurant offers a unique and exclusive dining experience, with a focus on local and seasonal ingredients.

Cas Pujol has received widespread critical acclaim, including a Michelin star, and is considered one of the best restaurants in the world.

Cas Pujol is a Michelin-starred restaurant located in the heart of Barcelona, Spain. It's known for its modern Catalan cuisine.

Chef Jordi Cruz is the mastermind behind the restaurant's innovative dishes. He's a pioneer in the use of local and seasonal ingredients.

Cas Pujol's menu is a reflection of the chef's passion for traditional Catalan cuisine. The restaurant's focus on local produce ensures that each dish is a true representation of the region's flavors.

The restaurant's interior is designed to resemble a modern art gallery. The open kitchen allows diners to witness the culinary magic firsthand.

Cas Pujol has received widespread critical acclaim, including a Michelin star. The restaurant's commitment to using only the freshest ingredients has earned it a loyal following among foodies.

Higini Cierco, one of the owners of Banca Privada d'Andorra (BPA), thinks the bank was a model institution that operated within the law. He calls the bank "modélico y rentable" and says it operated "con rigor y dentro de la legalidad".

The bank reported all clients who might be problematic to the relevant authorities, as required by Andorran law. This was recognized by Spanish courts when they looked into the matter in 2019.

Cierco claims that the bank's intervention harmed 700 families, BPA employees, and employees of the Spanish affiliate, Banco Madrid. It also negatively affected hundreds of clients and shareholders.

The bank lost around 500 million euros in the illegal expropriation.

In March 2015, the US Department of the Treasury labeled Banca Privada d'Andorra (BPA) a "primary money laundering concern".

The US Treasury accused three high-ranking executives of BPA of facilitating money laundering operations in exchange for bribes and commissions, working with Russian and Chinese criminal groups and Venezuelan money launderers.

BPA's corrupt management and weak anti-money-laundering controls made it an easy vehicle for third-party money launderers, according to the US Treasury's Financial Crimes Enforcement Network (FinCEN) director Jennifer Shasky Calvery.

The bank's assets were nominally assessed at €3 billion, far exceeding Andorra's annual budget of €400 million.

The situation raised questions about the solvency of Andorra's other major banks.

The non-toxic assets of the bank were put into a newly created Vall Banc, which was sold to J.C. Flowers in 2017.

INAF, Andorra's financial regulator, engaged PriceWaterhouseCoopers (PWC) to audit the bank's depositors, separating good clients from bad, for a fee of 30 million Euros.

This fee represented 14% of the BPA Group's total available assets.

Depositors who were affected by the crisis grouped together and initiated a class action against the government of Andorra for alleged mismanagement and gross misconduct in their management of BPA.

The government intervened, blocking withdrawals for clients at €2,500 per week.

The intervention was necessary to prevent a bank run, similar to what had happened in other countries like Cyprus.

The crisis led to a reevaluation of Andorra's financial stability, with Standard&Poor's downgrading its credit rating from BBB+ to BBB.

The bank's own rating was also downgraded, and the government's efforts to reassure the public were met with skepticism.

Banca Privada d'Andorra has a strong commitment to corporate responsibility, dedicating 21.02% of its profits to activities in this area.

The company focuses on social initiatives, which account for 94.54% of its corporate responsibility efforts, including employment aspects, community programs, and sports activities.

In 2013, Banca Privada d'Andorra got certified as a Family Responsible Company, an award given by the Fundación Másfamilia, with the approval of the Spanish Ministry of Health, Social Policies and Equality.

The company's corporate responsibility activities are mainly performed through the Private Foundation Banca Privada d'Andorra, a not-for-profit organization that aims to improve citizens' lives from a welfare, social, employment, and environmental perspective.

The Foundation promotes its own projects and collaborates with Andorran associations and entities, with a priority on integrating vulnerable groups and training professionals in the social field.

In 2013, the Group revalidated the certification as a Family Responsible Company, an achievement that demonstrates its ongoing commitment to corporate responsibility.

Global banks have been accused of serving oligarchs, criminals, and terrorists, and Banca Privada d'Andorra is no exception. The bank's management was allegedly involved in a money laundering scheme that benefited a Russian oligarch.

Banca Privada d'Andorra's ties to organized crime date back to the 1990s. The bank's chairman, Jaime Botés, had a history of working with corrupt politicians and businessmen.

The bank's lax regulations and lack of oversight allowed it to become a hub for illicit financial activity. This included money laundering for a Colombian cartel.

Banca Privada d'Andorra's collapse in 2015 was a result of its involvement in these illicit activities. The bank's assets were frozen, and its management was arrested.

The bank's ties to organized crime and corrupt politicians were exposed in a 2014 report by the International Consortium of Investigative Journalists.