A bank owned by a former Tory donor who has close links to Prince Andrew is at risk of losing its operating licence in Europe.
Banque Havilland, a private bank headquartered in Luxembourg, has drawn the wrath of regulators in Brussels amid a string of controversies and financial penalties.
As a bank for some of the world’s wealthiest and most private businessmen and women, Banque Havilland was bought in 2009 by David “Spotty” Rowland, a close friend of the Duke of York.
But it is now facing an uncertain future, with the European Central Bank (ECB) reportedly poised to withdraw Banque Havilland’s operating licence.
The exact reasons for the anticipated closure remain unclear, although any prospective action comes amid heightened scrutiny of the bank’s clients and processes.
Banque Havilland did not respond to a request for comment.
It was previously claimed by Bloomberg that Mr Rowland’s friendship with the Duke had enabled the financier’s family to pitch their services to high-ranking clients around the world.
The Rowlands allegedly joined the Duke on trips overseas during his time as Britain’s special representative for international trade and investment.
In return, the Duke was said to have been granted a private bank account with Banque Havilland and given access to the Rowlands’ private jet.
The relationship also led to Mr Rowland paying off a £1.5m loan taken out by the Duke with Banque Havilland, it was reported.
A spokesman for the Duke previously did not deny the payment but said Prince Andrew was “entitled to a degree of privacy in conducting his entirely legitimate personal finance affairs”.
The pair have been friends since at least 2005, when the Duke flew to Guernsey to unveil a bronze statue of the financier at his home.
However, in recent years Mr Rowland has reportedly presented himself as the Duke’s business advisor.
When asked about the Duke’s ties with Banque Havilland in 2022, a Buckingham Palace spokesman said his role was “to promote Britain and British interests overseas, not the interests of individuals”.
Banque Havilland also told Bloomberg at the time that none of its clients had been introduced or referred by Prince Andrew, claiming that he was never a “paid advisor or ambassador”.
Last year the bank was separately fined £10m by the Financial Conduct Authority for allegedly plotting to undermine Qatar’s currency to benefit Middle Eastern rivals.
At the time, the City watchdog’s head of enforcement said Banque Havilland “actively encouraged the commission of financial crime” and provided “ideas for manipulative trading”.
Banque Havilland has appealed against the findings. The case is still ongoing at an independent tribunal.
Details of the dispute gave a rare insight into the nature of the bank, which reportedly counts Mohammed bin Zayed, the president of Abu Dhabi, as one of its biggest customers.