Spanish Retail Broker Interdin Shaken by the US Patriot Act
- The parent company of the broker was Banco de Madrid, which went belly up on Monday as U.S. authorities have cracked down on its parent bank Banco de Andorra and labeled it as "a primary money laundering concern".
One of the big retail brokerages in Spain, Interdin has relinquished control of its business to the local financial regulator Comisión Nacional del Mercado de Valores (CNMV). The clients of the firm have not been able to open new positions since the immediate aftermath of the takeover and had to close their OTC exposure within the trading day.
According to a statement made by a broker spokesperson to Spanish media, the company was not in a position to cover the deposits of its clients in the aftermath of the insolvency of its parent company Banco de Madrid.
Banco de Madrid applied for Bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term protection after its parent Banca Privada d'Andorra (BPA) has been deemed by the U.S. Financial Crimes Enforcement Network as “a primary Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term concern” in accordance to the USA Patriot Act.
The resulting funding squeeze has resulted in a chain reaction which reached the retail broker Interdin.
Administrators of Banco de Madrid, appointed by the national central bank Banco de España, decided to file for bankruptcy protection after limited access to capital left the relatively small regional bank isolated from financial markets and facing a run by depositors.
In accordance to the USA Patriot Act, a unit governed by the U.S. Treasury Department, the Financial Crimes Enforcement Network, is looking to identify money laundering violations across global financial institutions.
The unit accused BPA of of laundering money on behalf of Chinese and Russian organized crime groups and Venezuelan government officials.
The resulting run on the bank have put in trouble its Spanish subsidiary, which in turn has shaken the brokerage.
Clients of the broker have been informed in a statement that the release of their account balances will be processed further after instructions from the CNMV which is currently managing the firm.
One of the big retail brokerages in Spain, Interdin has relinquished control of its business to the local financial regulator Comisión Nacional del Mercado de Valores (CNMV). The clients of the firm have not been able to open new positions since the immediate aftermath of the takeover and had to close their OTC exposure within the trading day.
According to a statement made by a broker spokesperson to Spanish media, the company was not in a position to cover the deposits of its clients in the aftermath of the insolvency of its parent company Banco de Madrid.
Banco de Madrid applied for Bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term protection after its parent Banca Privada d'Andorra (BPA) has been deemed by the U.S. Financial Crimes Enforcement Network as “a primary Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term concern” in accordance to the USA Patriot Act.
The resulting funding squeeze has resulted in a chain reaction which reached the retail broker Interdin.
Administrators of Banco de Madrid, appointed by the national central bank Banco de España, decided to file for bankruptcy protection after limited access to capital left the relatively small regional bank isolated from financial markets and facing a run by depositors.
In accordance to the USA Patriot Act, a unit governed by the U.S. Treasury Department, the Financial Crimes Enforcement Network, is looking to identify money laundering violations across global financial institutions.
The unit accused BPA of of laundering money on behalf of Chinese and Russian organized crime groups and Venezuelan government officials.
The resulting run on the bank have put in trouble its Spanish subsidiary, which in turn has shaken the brokerage.
Clients of the broker have been informed in a statement that the release of their account balances will be processed further after instructions from the CNMV which is currently managing the firm.