MADRID – Government-appointed administrators running the Spanish unit of an Andorran bank accused of money laundering say they have suspended its operations and filed for bankruptcy protection.
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Spain's central bank says a crush of withdrawals by clients of Banco de Madrid SA prompted the request to a judge for bankruptcy protection.
The bank caters to wealthy clients and is owned by Banca Privada d'Andorra.
The Andorra bank was named a "primary money-laundering concern" by the U.S. Treasury Department last week.
The chief executive of Banca Privada d'Andorra was arrested on Friday and is expected to appear in court this week in the tiny nation in the Pyrenees mountains between Spain and France.
The central bank statement Monday said Banco de Madrid deposits are guaranteed up to 100,000 euros ($105,000).