Financial Crime World

Andorra Fails to Meet Expectations in Fight Against Money Laundering and Terror Financing, MONEYVAL Report Reveals

Overview

A recent report by the Moneyval committee has highlighted both positive and negative aspects of Andorra’s efforts to combat money laundering and terrorist financing. While the country has made significant progress in understanding the risks associated with these crimes, it still lacks a clear political oversight to monitor the implementation of its action plans.

Strengths and Weaknesses

  • Comprehensive Understanding of Risks: Andorra has acquired a comprehensive understanding of the money laundering and terrorism financing risks it faces.
  • Modest Ratio of Investigations to Prosecutions and Convictions: The country’s ratio of investigations to prosecutions and convictions is modest.
  • Robust Legal Framework for Criminalizing Terrorist Financing: Andorra’s legal framework for criminalizing terrorist financing is robust, but there have been no prosecutions for this offense, which is broadly in line with its risk profile.

Areas for Improvement

  • Lack of Political Oversight: The country lacks a clear political oversight to monitor the implementation of its action plans.
  • Awareness among Small Institutions and Designated Non-Financial Businesses and Professions: Smaller financial institutions and designated non-financial businesses and professions such as lawyers and accountants may be less aware of their money laundering and terrorist financing risks.

Recommendations

  • Improve Strategic Engagement and Coordination: MONEYVAL has called on Andorra to improve its strategic engagement and coordination between its financial intelligence unit and other supervisory authorities.
  • Remove Dual Criminality Requirement for Mutual Legal Assistance: The report recommends that Andorra remove dual criminality as a requirement for rendering mutual legal assistance.

Future Steps

Andorra’s authorities have been given until 2018 to implement the necessary reforms to improve its anti-money laundering and counter-terrorism financing regime. Failure to meet these requirements could result in financial sanctions and restrictions being imposed on the country.