Money laundering inquiry into Banco de Madrid escalates
The investigation into Banco de Madrid for alleged money laundering has escalated, after the US Treasury Department Financial Crimes Enforcement Network (FINCEN) accused its parent bank Banca Privada d’Andorra (BPA) of being “a foreign financial institution subject to primary money laundering concern."
FINCEN's accusation forced the Spanish central bank to intervene in March, and to apply for Banco de Madrid's liquidation or bail out. Following this, the Spanish Orderly Bank Restructuring Fund (FROB, as abbreviated in Spanish) resolved not to bail out Banco de Madrid.
Read more: FROB rules against bail-out of Banco de Madrid
After investigating, the Spanish Prosecutor against Corruption and Organized Crime found that Banco de Madrid could have had a “money laundering and fiscal fraud structure” whose main objective was to help clients.
The prosecutor is currently investigating clients' accounts in order to shed light on Banco de Madrid's structure.
Since the bank's data is held by parent company BPA, the Spanish police has extended the probe to Andorra where the bank is based, according to El Mundo.
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