Title: MONEYVAL Applauds Andorra’s Progress Against Money Laundering and Terrorist Financing, Urges More Actions

Strasbourg, France - Andorra Praised for Reforms but Urged to Improve in New Moneyval Report

The Council of Europe’s Moneyval committee, an organization responsible for assessing European countries’ efforts to combat money laundering and terrorist financing (ML/TF), has released a new report praising Andorra for recent reforms while also identifying areas for improvement.

Andorra’s Progress According to Moneyval

• Enhanced regulatory and institutional framework: Andorra’s progress includes improvements in administrative structures, legal frameworks, and risk-based approaches.
• Strengthened legal framework: Moneyval acknowledges the country’s efforts to align its legislation with international norms.
• Improved operational effectiveness of the authorities: Andorra’s authorities have demonstrated increased efficiency and capacity to combat ML/TF activities.

Areas for Improvement

Despite these achievements, Moneyval identified several issues that remain unaddressed:

1. Inadequate customer due diligence measures: Andorra needs to enhance its customer due diligence measures by implementing risk-based approaches, setting up necessary procedures, and allocating sufficient resources.
2. Lack of legal provisions on confiscation and forfeiture of proceeds from crime: This includes the tracing and recovery of assets, which is essential for effective enforcement.
3. Insufficient action against shell companies: Anonymous bearer shares and shell companies undermine transparency and contribute to ML/TF risks.

Moneyval Recommendations for Andorra

1. Enhance customer due diligence measures: Andorra should implement risk-based approaches, set up necessary procedures, and allocate sufficient resources to ensure adequate customer due diligence.
2. Establish an effective financial intelligence unit (FIU): An adequate and effective FIU is crucial for analyzing suspicious transactions, sharing information with other FIUs, and coordinating with law enforcement agencies.
3. Enact and enforce legislation on confiscation and forfeiture of proceeds from crime: This includes the tracing and recovery of assets, which is essential for effective enforcement.
4. Address the issue of anonymous bearer shares and shell companies: Implement a transparency register for beneficial owners and address the issue of anonymous bearer shares and shell companies to enhance financial transparency.
5. Ensure financial institutions have access to adequate, accurate, and timely information: This will help financial institutions effectively monitor their clients and combat ML/TF activities.

Urgent Call to Action

Andorran authorities have been urged to address these concerns at the earliest opportunity to avoid potentially being blacklisted by international organizations. “While Andorra’s efforts have shown improvements, there is still work to be done,” stated a Moneyval spokesperson. “The global community expects nothing less but a robust financial sector with strong anti-money laundering and counter-terrorist financing measures.”

Setting a Strong Example for Europe

By addressing these pressing issues, Moneyval suggests Andorra could set a strong example for other European countries, paving the way for a more robust, transparent, and secure financial system across the continent.