Andorra Under Scrutiny for Money Laundering Detection Methods

A recent report by MONEYVAL has raised concerns about the effectiveness of Andorra’s detection methods in combating money laundering and terrorist financing. While the country has made significant progress in understanding the risks posed by these crimes, there are still areas where improvement is needed.

Progress Made in Understanding Money Laundering Risks

Andorra’s authorities have demonstrated a commitment to reform and have made significant progress in understanding the risks posed by money laundering and terrorism financing. However, MONEYVAL warns that a clear political oversight mechanism is needed to ensure the implementation of action plans designed to mitigate these risks.

Investigations and Prosecutions Remain Modest

While Andorra has seen improvement in its use of financial intelligence provided by the Unitat d’Intelligència Financera d’Andorra (UIFA) to investigate money laundering cases, the report notes that the ratio of investigations to prosecutions and convictions remains modest.

Awareness of Money Laundering Risks Varies Across Institutions

The report highlights that while large financial institutions in Andorra are aware of their money laundering and terrorist financing risks, smaller institutions and designated non-financial businesses and professions may be less informed about these risks.

Limited Resources Hinder UIFA’s Ability to Effectively Supervise the Financial Sector

MONEYVAL expresses concerns about the limited resources available to UIFA, which has hindered its ability to effectively supervise the country’s financial sector. The report also stresses the need for better coordination between UIFA and other supervisory authorities.

Andorra Praised for Proactive Approach in Seeking Legal Assistance

On a positive note, Andorra is praised for its proactive approach in seeking and providing legal assistance to foreign jurisdictions, with MONEYVAL recommending that dual criminality be removed as a requirement for mutual legal assistance.

Conclusion

While Andorra has made progress in addressing money laundering and terrorist financing risks, the report suggests that there are still areas where improvement is needed. By addressing these concerns, Andorra can strengthen its efforts to combat financial crime and maintain a strong reputation internationally.