Financial Crime World

Andorra Makes Strides in Financial Inclusion and Crime Prevention, But Room for Improvement

Andorra has made significant progress in implementing international standards to prevent money laundering and terrorist financing. However, the country still faces challenges in areas such as customer due diligence and supervision of financial institutions.

Key Findings

  • Andorra has made strides in implementing certain requirements related to transparency and beneficial ownership of legal persons.
  • The country has also strengthened its regulation and supervision of non-profit organizations.
  • Despite progress, there are still gaps in customer due diligence measures and supervision of financial institutions.

Areas for Improvement

Customer Due Diligence

  • Andorra needs to improve its customer due diligence measures, including verifying the identity of customers and maintaining accurate records of transactions.
  • The country must ensure that financial institutions comply with these requirements to prevent financial crime.

Supervision of Financial Institutions

  • Andorra’s supervisory body lacks resources and capacity to effectively oversee the financial sector.
  • This vulnerability leaves the country susceptible to financial crime and requires immediate attention.

Recommendations for Further Action

  • Strengthening Customer Due Diligence Measures: Enhance customer due diligence procedures, including verifying identities and maintaining accurate records of transactions.
  • Improving Supervision of Financial Institutions: Increase resources and capacity for the supervisory body to effectively oversee the financial sector.
  • Enhancing Transparency and Beneficial Ownership Requirements: Strengthen regulation and supervision of non-profit organizations and ensure transparency in beneficial ownership requirements.
  • Increasing Resources and Capacity: Allocate additional resources and capacity to support the supervisory body and enhance its effectiveness.

Conclusion

While Andorra has made progress in implementing certain requirements, there is still room for improvement in areas such as customer due diligence and supervision of financial institutions. The country’s commitment to addressing these issues will be crucial in ensuring that it remains a stable and secure jurisdiction for businesses and individuals alike.