NO NUMBER strikes fear into bankers’ hearts like “311”. That is the section of America’s Patriot Act of 2001 that gives the Treasury sweeping powers to act against those who facilitate financial crime, anywhere in the world, by labelling them a “primary money-laundering concern”. For firms badly behaved or unlucky enough to be targeted, a 311 designation is more often than not a death sentence.
The latest use of the power, in March, was against Banca Privada d’Andorra, a small money-manager based in the mountainous financial haven nestled between France and Spain. The move in effect shut the bank and its subsidiaries out of America’s financial system, preventing them from concluding any transactions denominated in dollars—an essential function for almost any bank. BPA’s Spanish unit has since been liquidated. The parent has been placed under the control of the Andorran authorities.
FinCEN, the arm of Treasury that handed out the black spot, accuses the bank of aiding money-launderers from China, Russia and Venezuela. It alleges that high-level managers knowingly facilitated untoward transactions, as well as €20m...Continue reading
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