MADRID: King Felipe VI of Spain has stripped his father, the former king Juan Carlos, of his allowance and renounced what he was due to inherit from him, the palace announced on Sunday (Mar 15).
The statement came after media reports that Juan Carlos had received US$100 million (90 million euros) from Saudi Arabia via an offshore account - and that King Felipe himself was also a beneficiary.
In the palace statement, the reigning king said that he had "absolutely no knowledge" of being a beneficiary of the foundation in question.
On Tuesday, the Spanish parliament decided against launching an investigation into suspected money laundering by the former king Juan Carlos.
Spain's hard-left Podemos party had called for it after reports earlier this month that in 2008 Juan Carlos received US$100 million from Saudi king Abdallah via the Swiss account of an entity listed in Panama.
The Swiss daily Tribune de Geneve added that in 2012, US$65 million of that sum was given by the king to his former mistress, Corinna zu Sayn-Wittgenstein.
Juan Carlos, 82, lost his immunity from prosecution after handing power to his son, Felipe, in June 2014 following a 39-year reign. He resigned from public life last year.
He came to the throne after the death of the military dictator Francisco Franco in 1975 and is widely respected for having favoured a transition to democracy.