Financial Crime World

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Andorra Tightens Anti-Money Laundering Laws Amid Global Crackdown

Andorra has taken significant steps to strengthen its anti-money laundering (AML) and countering terrorist financing (CFT) regime, adopting stricter rules to combat financial crime. The new regulations aim to close existing gaps in combating money laundering, terrorist financing, and evasion of sanctions.

Key Measures

The legislation package consists of three key measures:

  • EU “Single Rulebook”: A unified set of AML/CFT standards across the EU.
  • 6th Anti-Money Laundering Directive: Strengthened rules for financial institutions and other entities to prevent money laundering and terrorist financing.
  • Regulation Establishing the European Anti-Money Laundering Authority (AMLA): A centralized authority to monitor risks, supervise credit and financial institutions, and impose sanctions.

New Requirements

Under the new rules, financial institutions and other entities will be required to:

  • Conduct due diligence on customers
  • Verify customer identity
  • Establish detailed risk assessments
  • Transmit relevant information to a central register

Additionally, Andorra has:

  • Capped cash payments at €7,000
  • Capped crypto-asset transfers where the customer cannot be identified at €1,000
  • Banned citizenship by investment schemes (“golden passports”)
  • Imposed strong AML controls on residence by investment schemes (“golden visas”)

Financial Intelligence Unit (FIU)

Andorra will establish a FIU to prevent, report, and combat money laundering and terrorist financing. The FIU will:

  • Share information with other FIUs, competent authorities, and international organizations such as Europol, Eurojust, and the European Public Prosecutor’s Office
  • Monitor risks and threats within and outside Andorra

Beneficial Ownership

Andorra has defined beneficial ownership as having:

  • 15% plus one share or voting rights in a company
  • Direct or indirect ownership interest of 5% plus one share in the extractive industry or a company exposed to a higher risk of money laundering or terrorist financing

The country will maintain a central register of beneficial owners, available digitally and including current and historical information for a defined period.

AML Authority

Andorra’s financial intelligence unit, AMLA, will:

  • Directly supervise specific credit and financial institutions
  • Monitor risks and threats within and outside Andorra
  • Impose sanctions for material breaches

By implementing these measures, Andorra aims to strengthen its AML/CFT regime and contribute to the global effort to combat financial crime.