Friday, March 13, 2015

Entire board of Spanish bank resigns amid money laundering probe | Andorra's credit rating downgraded by S&P amid US accusations

Recently there has been a fall out between Venezuela and the U.S. Curious if this money laundering scheme may have influenced these recent actions by both countries:

Venezuela Officially Declares Bush And Cheney Terrorists, Bans Them From Country

and then

Obama Declares Venezuela a National Security Threat

Source - BreakingNews.Ie


The entire board of Spain’s Banco de Madrid has resigned after its Andorran owner was accused by the US of money laundering for clients from China, Russia and Venezuela.
The bank’s seven-member board held a special meeting and unanimously asked the Spanish central bank to resign late yesterday to “defend the interests of employees and clients” and “eliminate any doubt about the stability” of the bank.
The central bank said today in a statement that it accepted the board’s resignation and replaced them with a three-member board “to preserve the stability of the company and its operations”.
Banco de Madrid is owned by Andorra-based Banca Privada d’Andorra, or BPA.
Andorra took over BPA and Spain took over its Spanish unit after the US Treasury Department this week designated BPA a foreign financial institution “of primary money-laundering concern”, putting it at risk of being shut out of the US financial system.
The Treasury Department said BPA managers helped launder money, including US $2 billion US dollars allegedly siphoned from Venezuelan state oil company Petroleos de Venezuela SA.
One unnamed high-level BPA manager accepted “exorbitant commissions” to develop shell companies that helped launder the Petroleos de Venezuela money, the Treasury Department said.
Two other BPA managers helped alleged Russian and Chinese money launderers who were previously arrested in Spain, the department said. Money laundering was also said to have been performed for “numerous” Spanish business owners.


Source - Fox News

Andorra's credit rating downgraded by S&P amid US accusations of bank money laundering scheme

March 13, 2015

MADRID – Tiny Andorra has had its credit rating downgraded by Standard & Poor's following U.S. accusations that one of its five banks laundered money for groups from China, Russia and Venezuela.

S&P said in a statement Friday it is downgrading the country's rating from BBB+ to BBB, which is two notches above so-called junk status. It also placed Andorra, which is wedged between Spain and France, on negative credit watch, which means another downgrade is possible.

The downgrade comes days after Banca Privada d'Andorra was deemed a "primary money-laundering concern" by the U.S. Treasury Department, which puts it at risk of being shut out of the U.S. financial system.

S&P noted uncertainty about BPA and "possible consequences on the rest of the country's banking system and the government's medium-term fiscal position."



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