Panama's banking regulator, Superintendencia de Bancos de Panamá, has ordered the liquidation of Banca Privada d'Andorra SA (Panamá), the local unit of Banca Privada d'Andorra SA.

The liquidation came into effect Jan. 30, according to a statement from the regulator, after a potential buyout of the bank failed to materialize.

The regulator said that bids from potential buyers had been canceled after the Andorran Agency for the Resolution of Financial Entities, also known by its Catalan initials AREB, failed to give a formal green light in the time allotted.

This led SPB, the Panamanian regulator, to order a Forced Administrative Liquidation on Banca Privada d'Andorra SA (Panamá).

The event follows the 2015 designation of the parent bank as a primary money laundering concern by the U.S. Department of Treasury, which led authorities in Andorra and other countries to take control of it. Panama's authorities took control of the local unit in March 2015.