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Andorra's AML/CFT Progress: MONEYVAL Report

· 2 min read
Alexander Petrov
Financial Crime Investigator

Subtitle​

The Latest MONEYVAL Report Provides Insights into Andorra's Efforts to Combat Money Laundering and Terrorist Financing

Andorra, a small European microstate located between France and Spain, has been under international scrutiny for its role as a financial hub and potential safe haven for illicit funds. In this article, we will discuss the recent efforts by Andorra to enhance its anti-money laundering (AML) and countering the financing of terrorism (CFT) measures, as outlined in the MONEYVAL Committee's fifth round mutual evaluation report.

Andorra's Progress​

According to the report, which was conducted between March 2017 and September 2017, Andorra has made significant progress in strengthening its legislative and regulatory framework to mitigate money laundering and terrorist financing risks. Some achievements include:

  • The adoption of the Law on the Prevention of Money Laundering and Terrorist Financing in 2015
  • The ratification of most of the FATF 40 Recommendations
  • The establishment of a legal framework in line with the FATF's 40 Recommendations
  • The effectiveness of the financial intelligence unit, Autoritat Fiscal, in implementing AML/CFT measures

Areas for Improvement​

Despite these advancements, the report highlights several areas where Andorra could improve its financial regulations, including:

  • Beneficial ownership transparency
  • Risk assessment
  • Customer due diligence

To address these issues, Andorra has pledged to:

  • Improve its registry on beneficial ownership information
  • Enhance its risk assessment framework
  • Focus on complex transactions and those involving high-risk jurisdictions

International Pressure and the Path Forward​

The MONEYVAL report comes at a time when there is increasing international pressure on financial centers to tighten their AML/CFT regulations and prevent the abuse of their financial systems. With its historically liberal financial laws, Andorra has been a focus of attention. The recent efforts by the country to address these concerns and comply with international standards are a positive step towards building a more transparent and robust financial system.

Continued Collaboration and Best Practices​

As the world continues to tackle the challenges of financial crime, it is essential that countries like Andorra take concrete steps to enhance their AML/CFT frameworks. Through collaboration with international organizations and the implementation of best practices, Andorra can further fortify its financial system and reduce the risks of money laundering and terrorist financing.

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