Financial Crime World

Andorra Fails to Fully Combat Money Laundering and Terrorist Financing, Says MONEYVAL Report

Introduction

The MONEYVAL committee has released a scathing report criticizing Andorra’s efforts to combat money laundering and terrorist financing. Despite acknowledging significant reforms in legislation, the report calls for further improvements to ensure effective implementation.

Understanding of Risks

Andorra’s authorities have shown a comprehensive understanding of the risks posed by money laundering and terrorism financing. However, MONEYVAL believes that more needs to be done to translate this knowledge into tangible results.

  • Modest ratio between investigations, prosecutions, and convictions obtained in money laundering cases
  • Limited work to convert leads into successful outcomes

Efforts to Criminalize Terrorist Financing

Andorra has criminalized terrorist financing, but there have been no prosecutions for this offense despite its inclusion in national law. This lack of enforcement appears consistent with the country’s risk profile, according to MONEYVAL.

Awareness and Supervision

However, the committee expressed concerns about the awareness of money laundering and terrorist financing risks among smaller financial institutions and designated non-financial businesses and professions, such as lawyers and accountants. These entities may be downplaying their exposure to these risks, which could have serious consequences if left unchecked.

  • Limited resources available to Andorra’s financial intelligence unit
  • Hinder its ability to effectively supervise the country’s financial sector

Recommendations for Improvement

MONEYVAL praised Andorra for its proactive efforts to provide legal assistance to foreign jurisdictions and recommended the removal of dual criminality as a requirement for rendering mutual legal assistance.

  • Immediate action needed to address concerns and strengthen defenses against financial crime
  • Full report provides detailed assessment of Andorra’s anti-money laundering and counter-terrorist financing regime

In conclusion, MONEYVAL’s report highlights the need for Andorra to take immediate action to improve its efforts to combat money laundering and terrorist financing. The country must prioritize the translation of knowledge into tangible results, increase awareness among smaller financial institutions and designated non-financial businesses and professions, and strengthen its defenses against financial crime.