The Andorran authorities have moved quickly to limit any reputational damage from the problems at Banca Privada d’Andorra (BPA), which in March 2015 was accused by the US authorities of money laundering. They are keen to make clear that BPA is an isolated case, and is not representative of the rest of the Andorran banking sector (see table). Banking accounts for 20% of Andorran gross domestic product and is a large employer in a country with only 70,000 people.
The US Financial Crimes Enforcement Network (Fincen) said, in a note published without warning to the bank, that BPA was a foreign financial institution of “primary money laundering concern”. The bank was alleged to be laundering money for organised crime in Russia and China, and corrupt officials in Venezuela.
