Financial Crime World

Andorra’s Battle Against Financial Crimes and Terrorism Financing: Strengthening Anti-Money Laundering Measures

Andorra, a small European micro-state situated between France and Spain, is renowned for its secrecy and thriving banking industry. In recent years, however, international pressure to combat financial crimes and terrorism financing has resulted in significant improvements to Andorra’s anti-money laundering (AML) measures.

Financial Institutions and DNFBPs in Andorra

  • Over 200 financial institutions play a significant role in Andorra’s economy.
  • Stricter regulations, including customer due diligence, record keeping, and reporting requirements.
  • The Andorran government regulates Designated Non-Financial Businesses and Professionals (DNFBPs).

Anti-Money Laundering Legislation

  • Andorra passed a new AML law in 2018, aligning it with FATF standards.
  • Harsher penalties for money laundering offenses.
  • Financial institutions required to report suspicious transactions.

Customer Due Diligence and Record Keeping

  • Andorra now enforces extensive customer due diligence checks.
  • Ongoing monitoring of transactions is mandatory.
  • Financial institutions required to keep detailed customer records for at least five years.

Financial Intelligence Unit (FIU)

  • Andorra’s Financial Intelligence Unit (FIU) detects and investigates money laundering and terrorism financing cases.
  • Receives and analyzes suspicious transaction reports from financial institutions.
  • Collaborates with international institutions to prevent and investigate money laundering schemes.

International Cooperation

  • Andorra is a member of several international organizations.
  • Subject to international laws and regulations.
  • Bilateral agreements with countries for financial and tax information exchange.

In conclusion, Andorra has made notable strides in strengthening its anti-money laundering measures to combat financial crimes and terrorism financing. Andorra’s commitments include stricter regulations for financial institutions, rigorous customer due diligence procedures, and a robust financial intelligence unit. Andorra’s dedication to international cooperation further solidifies its stance as a responsible member of the international community.