Financial Crime World

Andorra Cracks Down on Money Laundering, Introduces Strict Regulations

The Principality of Andorra has taken a significant step towards combating money laundering and terrorist financing by introducing strict regulations and measures. The Financial Intelligence Unit of Andorra (UIFAND), the country’s financial watchdog, is responsible for monitoring and preventing money laundering activities.

What is Money Laundering?

Money laundering is the process of concealing or disguising the origin of illicitly obtained funds to make them appear legitimate. It involves converting “dirty” money into “clean” money through various means, such as investments, real estate transactions, or other financial dealings.

UIFAND’s Role in Preventing Money Laundering

The UIFAND was established in 2000 and has been working tirelessly to prevent money laundering and terrorist financing. Its responsibilities include:

  • Requesting information from reporting parties
  • Conducting on-site inspections
  • Gathering and analyzing statements
  • Ordering the blockade of suspicious operations
  • Cooperating with foreign organizations

Reporting Parties

The following taxpayers are subject to this Act:

  1. Financial services, including entities operating in the financial system, insurance companies, insurance brokers, post office giro institutions, and branches located in Andorra.
  2. Natural persons or legal entities engaged in certain professions, such as external accountants, tax advisers, auditors, notaries, lawyers, economists, managers, real estate agents, casinos, online gambling sites, associations, foundations, and other non-profit entities.

Prevention of Funds Laundering and Financing of Terrorism

Andorra has introduced various laws and regulations to prevent money laundering and terrorist financing. These include:

  • Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime
  • Act 28/2008, modifying the aforementioned Act
  • Act 4/2011, modifying the aforementioned Act
  • Act 20/2013, modifying the aforementioned Act

MoraBanc’s Policy on Prevention of Money and Securities Laundering

MoraBanc, a leading financial institution in Andorra, has implemented strict policies to prevent money laundering and terrorist financing. Its policy includes:

  1. Identification and knowledge of clients and their professional and economic activities
  2. Constant follow-up of operations and business relations with clients
  3. Existence of an internal control and communication body
  4. Implementation of internal procedures written with specific roles and profiles
  5. Spread of prevention culture to all staff through specific training activities and regular reminders

More Information

For more information on the prevention of funds laundering and financing of terrorism in Andorra, please visit the Financial Intelligence Unit of Andorra’s website at www.uifand.ad.