Andorra Lags Behind in Banking Compliance Regulations, Says FATF Report
The Principality of Andorra has been found to be only partially compliant with the Financial Action Task Force (FATF) recommendations on anti-money laundering and combating the financing of terrorism, according to a mutual evaluation report released by the organization.
Background
The report was conducted in 2017 and assessed Andorra’s adherence to the FATF Recommendations, which provide a global standard for anti-money laundering and combating the financing of terrorism (AML/CFT). The recommendations cover a range of areas, including customer due diligence, record keeping, and international cooperation.
Key Areas for Improvement
Andorra scored poorly on several key areas:
Customer Due Diligence
- Andorra was found to be largely compliant with this recommendation, but had some issues with ensuring that financial institutions were verifying the identity of customers.
Record Keeping
- Andorra was also found to be largely compliant with this recommendation, but had some issues with maintaining accurate and complete records.
International Cooperation
- Andorra was found to be partially compliant with this recommendation, but had some issues with cooperating with other countries on AML/CFT matters.
Areas of Strength
On the other hand, Andorra scored well in areas such as:
National Cooperation and Coordination
- Andorra was found to be partially compliant with this recommendation, but had made efforts to improve its coordination between different agencies.
Confiscation and Provisional Measures
- Andorra was found to be compliant with this recommendation, having implemented effective laws and procedures for confiscating assets related to money laundering.
Recommendations for Improvement
The report makes several recommendations for Andorra to improve its compliance with the FATF Recommendations, including:
- Strengthening customer due diligence procedures
- Improving record keeping practices
- Enhancing international cooperation on AML/CFT matters
Next Steps
Andorra has two months to respond to the report and provide a plan of action to address the recommendations. The FATF will then review Andorra’s progress in implementing these changes.
About the FATF
The Financial Action Task Force (FATF) is an inter-governmental organization that develops and promotes policies to protect the global financial system against money laundering, terrorist financing, and other related threats. Its Recommendations are widely regarded as the global standard for AML/CFT regulation.