Financial Crime World

Andorra Tightens Grip on Financial Crime as it Enhances AML Framework

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Andorra has strengthened its anti-money laundering (AML) measures to combat money laundering and terrorist financing. The country’s government has implemented a comprehensive legal framework to prevent and detect financial crimes, making it increasingly difficult for criminals to operate in the financial system.

At the heart of Andorra’s AML efforts is the Law on the Prevention and Fight against Money Laundering and the Financing of Terrorism, enacted in 2010. This law requires:

  • Financial institutions, designated non-financial businesses and professions (DNFBPs), and other entities to implement robust customer due diligence (CDD) procedures
  • Conduct thorough CDD on customers, including:
    • Identification and verification of identities
    • Monitoring of transactions
    • Reporting of suspicious activities to the Financial Intelligence Unit (FIU)

Financial Institutions’ AML Obligations

Andorra’s financial institutions, including banks, insurance companies, and investment firms, are subject to strict AML regulations. They must:

  • Conduct thorough CDD on customers
  • Identify and verify identities
  • Monitor transactions
  • Report suspicious activities to the FIU

DNFBPs’ AML Obligations

DNFBPs, such as lawyers, accountants, real estate agents, and casinos, also have AML obligations. They must:

  • Conduct CDD measures, including:
    • Identification of beneficial owners
    • Implementation of internal controls
    • Reporting of suspicious transactions to the FIU

Financial Intelligence Unit (FIU)

The FIU plays a crucial role in Andorra’s AML framework, receiving, analyzing, and disseminating information on suspicious transactions to relevant law enforcement and supervisory authorities. The unit:

  • Collaborates with international counterparts
  • Participates in global initiatives to combat money laundering and terrorist financing

International Cooperation

Andorra has signed various international agreements and treaties on mutual legal assistance and extradition, facilitating the exchange of information and cooperation with other countries in AML investigations and prosecutions.

Membership in Global Organizations

Andorra is a member of the Financial Action Task Force (FATF), an intergovernmental organization that sets global standards for AML and counter-terrorist financing. The country has undergone mutual evaluations by the FATF to assess its compliance with global standards.

Conclusion

Andorra’s efforts to enhance its AML framework demonstrate its dedication to maintaining the integrity of its financial system and protecting against illicit activities. The country’s robust customer due diligence requirements, Financial Intelligence Unit, and international cooperation have made it increasingly difficult for criminals to operate in the financial sector, making Andorra a more attractive destination for legitimate businesses and investors.