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Spain: Board of bank taken over by regulator asks to resign

A client speaks with journalists after leaving a Banco de Madrid office in Madrid, Spain, Wednesday, March 11, 2015. Spain's central bank has taken over a bank that caters to the rich following accusations by the United States that its Andorran owner was involved in laundering money for criminal groups from China, Russia and Venezuela. The Bank of Spain said in a statement late Tuesday that it has put two employees in charge of Banco de Madrid SA, which has 23 branches around the country and is owned by Banca Privada d'Andorra. Banner on left, written in Spanish reads 'BP Andora Paradise for thieves' (AP Photo/Paul White)
A client speaks with journalists after leaving a Banco de Madrid office in Madrid, Spain, Wednesday, March 11, 2015. Spain's central bank has taken over a bank that caters to the rich following accusations by the United States that its Andorran owner was involved in laundering money for criminal groups from China, Russia and Venezuela. The Bank of Spain said in a statement late Tuesday that it has put two employees in charge of Banco de Madrid SA, which has 23 branches around the country and is owned by Banca Privada d'Andorra. Banner on left, written in Spanish reads 'BP Andora Paradise for thieves' (AP Photo/Paul White) A client speaks with journalists after leaving a Banco de Madrid office in Madrid, Spain, Wednesday, March 11, 2015. Spain's central bank has taken over a bank that caters to the rich following accusations by the United States that its Andorran owner was involved in laundering money for criminal groups from China, Russia and Venezuela. The Bank of Spain said in a statement late Tuesday that it has put two employees in charge of Banco de Madrid SA, which has 23 branches around the country and is owned by Banca Privada d'Andorra. Banner on left, written in Spanish reads 'BP Andora Paradise for thieves' (AP Photo/Paul White)

By Associated Press 2 min read

MADRID (AP) – The board of Spain’s Banco de Madrid bank catering to wealthy clients has asked to resign after its Andorran owner was accused by the U.S. of money laundering for clients from China, Russia and Venezuela, Banco de Madrid said Wednesday

The bank’s seven-member board held a special meeting Tuesday and unanimously made the resignation request to the Spanish central bank late Tuesday to “defend the interests of employees and clients” and “eliminate any doubt about the stability” of the bank.

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 U.S. 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 U.S. financial system.

The Treasury Department said BPA managers helped launder money, including $2 billion 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.

Tiny Andorra has a population of 85,000. It is wedged between Spain and France in the Pyrenees mountains and is known as a destination for skiing, shopping and banking. BPA is one of its five banking institutions.