Financial Crime Investigation Procedures in Andorra Under Scrutiny

Andorra’s financial system has come under scrutiny by international watchdogs as they assess the country’s progress in implementing anti-money laundering (AML) and counter-terrorism financing (CTF) measures.

FATF Assessment: Largely Compliant Rating

Andorra received a “Largely Compliant” rating from the Financial Action Task Force (FATF), reflecting its efforts to meet technical requirements. The report highlights several areas where Andorra excelled, including:

• Assessing risk and applying a risk-based approach
• National cooperation and coordination
• Confiscation and provisional measures
• Transparency in beneficial ownership

Andorra also scored well on implementing targeted financial sanctions related to terrorism and terrorist financing.

Areas for Improvement

However, there are some areas where Andorra needs improvement:

• Strengthening regulations and supervision of financial institutions
• Enhancing powers of supervisors and law enforcement authorities
• Improving internal controls in foreign branches and subsidiaries
• Increasing transparency in reporting suspicious transactions
• Relying on third parties more effectively

Additionally, the FATF report notes that Andorra needs to strengthen its regulation and supervision of designated non-financial businesses and professions (DNFBPs), including:

• Customer due diligence
• Other measures

Andorra must also improve its ability to provide guidance and feedback to financial institutions and law enforcement authorities.

Conclusion

Despite areas for improvement, Andorra’s overall rating reflects significant progress in implementing FATF Recommendations. The country has demonstrated a commitment to combating financial crime and will continue to work towards achieving full compliance with international standards.