Andorra’s Financial Crime Law Enforcement: A Mixed Bag

The Financial Action Task Force (FATF) has released its latest mutual evaluation report on Andorra’s implementation of anti-money laundering (AML) and combating the financing of terrorism (CFT) measures. The assessment provides a mixed picture of Andorra’s efforts to combat financial crime.

Compliance with FATF Recommendations

Andorra was found to be “largely compliant” with 12 out of 40 FATF Recommendations, including:

Assessing risk and applying a risk-based approach
National cooperation and coordination
Targeting financial sanctions related to terrorism and terrorist financing

However, Andorra was also identified as being “partially compliant” in several areas, including:

Confiscation and provisional measures
Targeted financial sanctions related to proliferation
Regulation and supervision of financial institutions

Non-Compliance with FATF Recommendations

Andorra was found to be “non-compliant” with only two FATF Recommendations, namely:

Implementation of powers of supervisors
Mutual legal assistance

The report notes that the authorities have made some progress in addressing these deficiencies, but more needs to be done to bring them into line with international standards.

Efforts to Strengthen AML/CFT Regime

The FATF has commended Andorra for its efforts to strengthen its AML/CFT regime, including:

Establishment of a financial intelligence unit
Implementation of customer due diligence measures

However, the report also notes that there are still some weaknesses in the system, particularly in relation to:

Supervision of non-profit organizations
Regulation of new technologies

Conclusion

The report suggests that Andorra has made progress in implementing its AML/CFT regime, but there is still more work to be done to ensure that it is fully compliant with international standards. The authorities will need to continue to strengthen their efforts to address these deficiencies and bring their regime into line with best practice.