AREB Updates on BPA Liquidation Amid Ongoing Probes and Transparency Criticism

Sílvia Cunill, president of the State Agency for the Resolution of Banking Entities (AREB), updated a parliamentary finance committee on the Banca Privada d'Andorra (BPA) liquidation process, confirming that justice authorities maintain open investigations, especially concerning non-transferable clients.

During her appearance before the General Council's finance commission in Andorra la Vella, Cunill reported that these clients represent about 4% of the total but hold roughly 15% of the funds' volume due to unverified origins. The AREB fields regular information requests from courts, signaling ongoing but non-public cases. Reports differ on finalised money laundering convictions: some accounts note two, while others cite just one. Cunill emphasised that a lack of additional sentences does not indicate closures, given the lengthy, technically demanding nature of proceedings—many with international links—that require the judicial administrator to preserve assets.

Out of 188 litigations since 2015, 43 remain active: 27 criminal, 10 administrative, and six civil. A new criminal complaint from BPA's former shareholders targets the AREB board and director general over alleged falsification of annual accounts, procedural fraud, and malfeasance. "We have great trust in the justice system and that matters will be clarified," Cunill stated, adding that all actions comply with legal standards.

The process entered bankruptcy liquidation in March 2024, with the AREB serving as court-appointed administrator under Batllia oversight rather than resolution authority. Assets such as deposits and real estate are sold progressively, distributing cash proceeds to creditors; BPA no longer functions as a bank and generates no interest. Cunill could not provide a completion timeline, as it hinges on judicial outcomes.

Opposition members challenged the AREB's transparency. Social Democratic Party leader Pere Baró described it as opaque and potentially unconstitutional under Article 72.3, which mandates public administration to act with objectivity, hierarchy, efficacy, and transparency. He highlighted the gap between roughly 500 affected clients and minimal convictions, questioning why deposits earn no interest during liquidation while clients face interest claims in disputes. Concòrdia councillor Maria Àngels Aché joined calls for details on assets and proceedings.

Cunill defended confidentiality, rooted in BPA's private entity status and current judicial control, which dictates data access. The AREB has never faced a conviction as a civil party, with its actions judicially upheld. Beyond BPA, the agency sustains frameworks to shield the financial system from crises, recently updating resolution plans with banks to bolster solvency and liquidity without public funds.