Andorra’s Anti-Money Laundering Regulations: A Closer Look at Identity Verification Requirements

Andorra, a small European country, has been enhancing its anti-money laundering (AML) and Know Your Customer (KYC) regulations. In this article, we provide an overview of the identity verification requirements under Andorra’s “Law 14/2017, of June 22, on the Prevention and Fight against Money Laundering and Terrorist Financing.”

1. Overview of Andorra’s AML/KYC Regulations

Andorra’s regulations aim to ensure that regulated entities implement effective measures to prevent money laundering and terrorist financing. In this section, we outline the necessary steps to adhere to the identity verification requirements as set forth by the Andorra’s General Council, Andorran Financial Authority (AFA), and the aforementioned Act.

2. Key Definitions

In this context, we define several important terms:

Client: Shufti Pro’s customer.
Customer: The end-user (client’s customer).
End-user: The customer from Shufti Pro’s perspective.
Document Verification: The process of verifying the authenticity of a government-issued identity document.
Identity Verification: The process of verifying the identity of the client’s customers.
Proof of Identity: Any government-issued identity document that can be used to identify an individual (natural person).
EDD (Enhanced Due Diligence): A process that executes a greater level of scrutiny related to potential business relationships.
Third-Party Diligence: The outsourcing of the due diligence process to an external party by the client.
PEP (Politically Exposed Person): A person with a higher risk for potential involvement in bribery/corruption.

3. Compliance with AML and KYC Regulations in Andorra

Since June 22, 2017, Andorra’s AML/KYC regulations have been enforced. In this article, we focus on the identity verification requirements within the broader context of these regulations.

4. Identity Verification Requirements

In accordance with the Andorran regulations, specific ID attributes are required to identify a natural person from official documents:

Full Name: The complete name of the individual as it appears on the identification document.
Date and place of birth: The birthdate and birthplace of the individual.
Address: The current address of the individual as it appears on the identification document.
Nationality: The legal nationality of the individual.

4. Compliant CDD (Customer Due Diligence) Methods

Shufti Pro offers several methods for performing identity verification on behalf of the client:

Verification based on independent-sourced documents: Shufti Pro performs verification of an end-user’s identity using documents provided and ensures that these documents meet the requirements for identity verification.
Real-time video transmission: A live, interactive video session is conducted between an identification expert and the end-user. The end-user is asked to show their identity documents and perform liveness checks.
Document Verification: Shufti Pro uses its specialized Document Verification service to perform checks on the authenticity of submitted documents.

Please note that the information provided in this article is an overview of the identity verification requirements and should not be considered a definitive or comprehensive guide. The responsibility for complying with all AML and KYC obligations rests solely with the client. It is essential to thoroughly analyze your specific situation, organizational requirements, and regulatory practices before implementing identity verification procedures.

Disclaimer

Neither Shufti Pro nor the authors of this document shall be held responsible, liable, or accountable for the contents of this document. This document is for informational purposes only, and the client remains responsible for ensuring full compliance with all applicable AML and KYC regulations.