Financial Crime World

Title: International Community Cracks Down on Financial Crime in Andorra: MONEYVAL Leads the Way

Andorra’s Fight Against Financial Crime

Andorra, a tiny European nation between France and Spain, is making significant strides in the fight against financial crime under international scrutiny. The Council of Europe’s Moneyval Committee (MONEYVAL) has been instrumental in pushing Andorra to strengthen its financial regulations.

MONEYVAL’s Role in Evaluating Andorra’s Progress

MONEYVAL, an independent evaluator reporting to the Committee of Ministers of the Council of Europe, has played a pivotal role in monitoring Andorra’s efforts against money laundering, terrorism financing, and financing of weapons of mass destruction.

  • Recognizing progress: MONEYVAL recognized Andorra’s efforts to improve its legal frameworks but stressed the need for more effective implementation and enforcement.
  • Recommendations: Andorra responded by adopting new regulations and ratifying key international conventions.

Recent Regulatory Changes in Andorra

  • New regulations: The Andorran government adopted new regulations to enhance anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
  • Expanding SAMLIMM: The country’s financial intelligence unit, known as the Andorran Service of Money Laundering and Monetary Offences Prevention (SAMLIMM), is undergoing expansion to become a more effective body.

International Initiatives and Andorra’s Progress

MONEYVAL is not the only international organization scrutinizing Andorra.

  • FATF monitoring: The Financial Action Task Force (FATF) has monitored Andorra’s financial sector for vulnerabilities to money laundering and terrorism financing since 2006.
  • EU’s list of high-risk third countries: Andorra was included in the EU’s list of high-risk third countries in 2021 due to deficiencies in its AML and CTF frameworks. However, it made sufficient progress and was removed from the list in 2022.

Onward Journey Towards Transparency

Andorra’s journey to strengthen its financial framework is ongoing.

  • Transparent and responsible financial center: Andorra is demonstrating a commitment to meeting global standards and improving financial oversight.
  • Ongoing challenges: Challenges remain for Andorra, but it is moving in the right direction.