The entire board of Spain’s Banco de Madrid has resigned after its Andorran owner was accused by the US of siphoning money from Venezuela’s state oil on behalf of clients.
The seven-member board stood down to “defend the interests of employees and clients” and “eliminate any doubt about the stability” of the bank.
Banco de Madrid said a new three-member board was appointed “to preserve the stability of the company and its operations”.
The bank 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 £1.3billion allegedly siphoned from Venezuelan state oil company Petroleos de Venezuela.
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.
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