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Andorra's Comprehensive AML/CFT Measures for DNFBPs

· 3 min read
Natalie Santiago
Anti-Bribery Specialist

Andorra's Progress in Strengthening AML/CFT Measures​

The Principality of Andorra, situated in the heart of the Pyrenees, has shown impressive progress in enhancing its measures to counteract money laundering and terrorist financing, as revealed in the latest report by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Moneyval).

📅 December 7, 2021

Commendation by Moneyval​

The on-site review of Andorra's financial sector was conducted between 2018 and 2019. Moneyval's report published on December 7, 2021, acknowledged Andorra's improvements.

Enhanced Regulatory Framework​

Andorra has made notable strides in fortifying its regulatory framework, specifically in the area of Designated Non-Financial Businesses and Professions (DNFBPs). DNFBPs, including real estate agents and trust and company service providers, do not typically carry mandatory customer due diligence requirements and pose distinct risks to money laundering and terrorist financing.

Regulatory Oversight for DNFBPs​

With the new regulatory framework in place, Andorra is the first country to bring all DNFBPs under oversight, ensuring a more comprehensive approach to address money laundering and terrorist financing risks.

Strengthened Risk-Based Approach and Transactional Oversight​

Moneyval's report recognized that Andorra has significantly increased its efforts to improve its risk-based approach to supervision and has put requirements for ongoing supervision of DNFBPs' transactions in place.

Information Sharing and International Cooperation​

Andorra has effectively implemented various measures to strengthen its information sharing and international cooperation. One such notable achievement is the establishment of a memorandum of understanding with the Spanish Financial Intelligence Unit, a key recommendation from Moneyval's previous assessment.

Areas for Improvement​

Though the report highlighted Andorra's significant advancements, there are still areas where enhancements are needed. The authorities are encouraged to focus more on detecting and confiscating the illicit proceeds of crime. Additionally, efforts should be made to boost progress in the realm of mutual legal assistance, particularly in cooperating with requesting countries.

Importance of Continuous Monitoring and International Collaboration​

The progress reported by Moneyval on Andorra's efforts to fight financial crimes underscores the significance of ongoing monitoring and effective collaboration between financial establishments and regulatory authorities.

Implications for Other Countries​

Andorra's strides in combatting money laundering and terrorist financing provide a vital precedent for other countries with comparable financial structures.

📝 Ongoing work in this area is crucial

The ongoing work to prevent the diversion of funds for illicit purposes and ensure the integrity of global financial systems is of paramount importance.