Financial Crime World

Title: Andorra’s Strides Forward in Combat Against Money Laundering and Terrorist Financing

Andorra, a small European country located in the Pyrenees mountains, has made significant strides in strengthening its financial crime prevention measures, as outlined in the latest mutual evaluation reports by the Financial Action Task Force (FATF) 1 and its stylish counterpart MONEYVAL 2.

Progress Since the Last Evaluation (2017)

Since its last evaluation, Andorra has taken decisive steps to enhance its level of compliance with FATF recommendations regarding Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) 3. This reporting period saw various initiatives undertaken by Andorran authorities to bolster their financial crime prevention framework. Below are the key areas of improvement:

  • Andorra has updated its legal framework to meet international standards by criminalizing money laundering, terrorism financing, and other relevant financial crimes.
  • New regulations regarding the identification, reporting, and freezing of suspicious transactions have been enacted.

Supervisory and Regulatory Body

  • A new independent supervisory and regulatory body, the Autoritat Fiscal de l’Andorra (AFA), has been established to monitor and enforce financial regulations. AFA now oversees financial institutions and designated non-financial businesses and professions.

International Cooperation and Information Exchange

  • Andorra has strengthened its international cooperation and information exchange efforts, joining the European Union’s Banking Union and participating in initiatives such as the EU’s fifth Anti-Money Laundering Directive.

Risk Assessment and Mitigation

  • A thorough financial sector risk assessment was conducted to identify and address vulnerabilities. The Andorran authorities have developed and implemented risk mitigation strategies to target areas of heightened risk.

Recognition from FATF and MONEYVAL

These efforts have been recognized by the FATF and MONEYVAL. According to their reports 3, “Andorra has made significant progress” and is “continuing to improve its AML/CFT regime.” Nonetheless, the reports also stress the importance of continuous improvement as the fight against financial crimes is ongoing.

Conclusion

The reports from FATF and MONEYVAL offer valuable insights into Andorra’s progress in combating money laundering and terrorist financing. By addressing the identified shortcomings and strengthening its regulatory framework, Andorra can further solidify its position as a responsible and compliant jurisdiction in the global fight against financial crimes.