Title: Andorra’s Battle Against Financial Crimes: A MONEYVAL Review

Subtitle: Fifth Round Mutual Evaluation Report Highlights Compliance and Effectiveness of Andorra’s Anti-Money Laundering and Counter-Terrorism Financing System

The European anti-money laundering and counter-terrorism financing (AML/CFT) watchdog, MONEYVAL, published its fifth round mutual evaluation report on Andorra on September 28, 2017. This comprehensive analysis evaluates the AML/CFT measures in place in the Principality of Andorra as of March 2017.

Key Findings

Compliance with FATF Recommendations

Andorra demonstrates a commendable level of compliance with most of the Financial Action Task Force (FATF) 40 Recommendations. However, certain areas need enhancement. Key areas requiring improvement are:

1. Customer due diligence
2. Beneficial ownership transparency
3. Political exposure

Effectiveness of Andorra’s AML/CFT System

The report concludes that Andorra’s AML/CFT framework is generally effective. Nonetheless, improvements can be made, including:

1. Increasing the use of automated and risk-based approaches
2. Ensuring effective implementation of customer due diligence measures
3. Enhancing international cooperation

Implications

The fifth round mutual evaluation report recognizes the progress Andorra has made in establishing a robust AML/CFT system, but also identifies areas where further developments are necessary. The MONEYVAL recommendations, if implemented, will strengthen Andorra’s position as a reputable financial center upholding the highest international standards against financial crimes.

MONEYVAL’s message to the global community

MONEYVAL’s evaluation underscores the importance of an effective and constantly evolving AML/CFT framework. In the ongoing global fight against financial crimes, this report highlights Andorra’s efforts in combating money laundering and terrorism financing and serves as an example for other countries to follow.