The AREB profits from 250 million euros in savings Part 1

Three years since the intervention to the BPA, and not the slightest attempt has been made to give back the funds to the rightful owners.

The State Agency for Resolution of Financial Institutions of  Andorra (AREB) has illegally blocked assets from former BPA clients, in total approximately 250 million euros. Furthermore, it now intends to request funds from the government of Andorra to deal with the legal costs that its intransigence has generated, due to litigations and complaints from 109 affected clients who are legally supported, and will not give up the fight to get their savings back.

This money, which is being held in possession by the AREB, is deposited in Vall Banc and banks in Switzerland. Suspiciously enough, it is generating millions in interests to cover the “gone-bad business” of selling the “good” funds to the vulture fund JC Flowers. This entity is the only one profiting from it, and keeps blocking and evading proceedings in order to hold on to the money as long as possible, with no visible intention of giving back the funds to the rightful owners. Just four of the important clients represent an estimated amount of 50 million euros, and the average amount of each of the remaining blocked clients totals over 2 million euros.

With this whole situation going nowhere, BPA clients have filed a lawsuit against the Principality of Andorra through the law firm Cremades-Calvo Sotelo and two other independent Andorran firms. The claim is for an estimated total of nearly 250 million euros. There are 109 legal proceedings being disputed, both civil and criminal, that are related to the BPA resolution and the accounts and products not being transferred to Vall Banc, because of the risk they represented with regard to money laundering.

In an insane and desperate move, the Government submitted a bill on credit supplement that authorized 2.9 million euros to pay for the AREB’s administrative and legal costs as a result of the BPA resolution process. It was stipulated that any income derived from the bridge entity, would be destined to recover all the expenses incurred by the AREB. It is worth mentioning that the Resolution Law includes an initial and extraordinary budget of thirty million euros, provided by bank institutions of Andorra, and also the opening of a financing programme for up to one hundred million euros, meant for the funding of business enterprises.

After taking on the responsibility for the BPA, the AREB has always shown lack of both planning ability and respect for the legal safety of the affected clients, who have pointed out that this aggressive behavior has violated the constitutional right to private property and has jeopardized the image as well as the credibility of the Principality of Andorra. In over three years, no explanation has been given to them on why an entity, that met all national and European standards for norms and protocols, was intervened overnight, blocking all assets. The FinCEN’s behavior is considered erratic and unclear, backed by a consulting firm such as PricewaterhouseCoopers (PwC). The criteria followed has little to do with the current regulations in the Principality of Andorra and around the world, and it has prevented many clients from qualifying.