The Standard&Poor’s rating agency in connection with a situation with Banca Privada d’Andorra (BPA) bank lowered the Principality rating to BBB.
Earlier National institute of finance of Andorra (INAF) appointed two external managing directors in one of five banks of Andorra – Banca Privada d’Andorra (BPA) for carrying out internal investigation in response to official charge from the U.S. Treasury Department of money laundering received by BPA from criminal groups. As they say in the formal notice of department of financial crimes at the U.S. Treasury Department (FinCEN), BPA transferred through four American correspondent banks hundreds of millions dollars, despite all signs of illegality of this transaction. Look for details here
According to experts of Standard&Poor’s, reaction of the government of Andorra to current situation was adequate, however, th official charge of the American authorities creates “uncertainty of the future”.
“The authorities of Andorra do everything possible for maintenance of a financial system of the country“, – is said in the statement of Standard&Poor’s. The agency also notes that the National institute of finance of Andorra (INAF) “cooperates fully with the international regulators in those jurisdictions in which banks of Andorra work”.
It´s mentioned in the report about high liquidity of a banking system of Andorra at the level of nearly 70% and a high rate (according to standards of the EU) solvency at the level of 22%.
At the same time Standard&Poor’s considers that business of BPA revealed certain risks of a banking system of Andorra. Anyway, charge and the designated requirements of the Ministry of Finance of the USA will push off operating activities of bank with a number of difficulties. At the same time, the agency considers that implementation of all requirements of the Ministry of Finance of the USA by Andorra can lead to return of a rating.