Financial Crime World

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

A Mixed Assessment from MONEYVAL

A recent report by the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) has praised Andorra’s efforts to combat money laundering and terrorist financing, but called for improvements in several areas.

Progress Made, But Room for Improvement

The report highlights that Andorran authorities have made significant progress in recent years, with a clear political commitment to reforming its legislation and strengthening its fight against money laundering and terrorist financing. However, there are still areas where improvement is needed.

Areas of Concern

Investigations and Prosecutions

  • The ratio between investigations and prosecutions appears to be modest.
  • Large financial institutions in Andorra are aware of their risks, but smaller ones may not be as vigilant.

Limited Resources Hamper Effectiveness

The report criticizes the limited resources available to Andorra’s financial intelligence unit, which hampers its ability to effectively supervise the country’s financial sector. Furthermore, it stresses the need for better strategic engagement and coordination between the unit and other supervisory authorities.

Positive Notes

  • Andorra has proactively sought and provided legal assistance to foreign jurisdictions.
  • MONEYVAL recommends removing dual criminality as a requirement for rendering mutual legal assistance.

Conclusion

While Andorra has made significant progress in recent years, there is still much work to be done to effectively combat money laundering and terrorist financing.