Andorra Meets Anti-Money Laundering and Combating Financing of Terrorism Requirements
==============================================
The Financial Action Task Force (FATF) has announced that Andorra has addressed the majority of its deficiencies in implementing anti-money laundering (AML) and combating financing of terrorism (CFT) regulations. The country’s progress was evaluated under several criteria, including requirements for cross-border wire transfers, criminalization of money laundering offenses, and reporting obligations.
Cross-Border Wire Transfers
Andorra has implemented new provisions requiring all cross-border wire transfers to be accompanied by relevant beneficiary information, regardless of the amount. This measure aims to enhance transparency and prevent illegal activities.
Criminalization of Money Laundering Offenses
The country’s Criminal Code was amended to criminalize money laundering offenses related to tax crimes and smuggling of goods (excluding tobacco). This addresses a previous shortcoming identified by FATF.
Reporting Obligations
Andorra has taken steps to address deficiencies in reporting obligations, including the requirement for all reportable entities to maintain accurate records. The country’s AML/CFT Act now requires casinos and other gambling services providers to apply customer due diligence measures upon collection of winnings or wagering of a stake.
Remaining Deficiencies
Despite these improvements, some minor shortcomings remain. For example:
- The definition of trust and company service providers in Andorra’s AML/CFT Act is narrower than required by FATF standards.
- There is no requirement for reporting entities to immediately obtain information on the nature and purpose of a business relationship.
Overall Assessment
Andorra has made significant progress in implementing its AML/CFT regulations, but some minor issues still need to be addressed. The country’s efforts have earned it a re-rating from Partially Compliant to Largely Compliant under FATF’s evaluation criteria.