Andorra’s Battle Against Financial Crime: Navigating the MONEYVAL Evaluation

The Principality of Andorra faces heightened scrutiny as European financial watchdog, MONEYVAL, assesses its efforts to combat money laundering, terrorism financing, and financing of weapons of mass destruction.

A Diligent Response to International Concerns

Amid growing international pressure on financial crimes, Andorra, a microstate situated between France and Spain, is working assiduously to strengthen its regulatory framework and align with international best practices:

1. European Union’s AMLD4
2. FATF Recommendations

A Long Regulatory History

Andorra joined the Council of Europe in 1993 yet enacted its Law on the Prevention of Money Laundering and Financing of Terrorism only in 2013, following the establishment of the Financial Intelligence Unit (UIAF).

Key milestones:

• Council of Europe membership: 1993
• Law on the Prevention of Money Laundering and Financing of Terrorism passage: 2013
• MONEYVAL evaluation commencement: October 2022

The MONEYVAL Evaluation: Stakes High

The MONEYVAL assessment, initiated in October 2022, is expected to culminate in March 2023. Covering legislative framework, criminalization, international cooperation, risk assessment, and transparency, this evaluation:

• Sets the stage for enhanced reputation and increased foreign investment
• Risks international criticism and potentially restrictive measures

Preparations and Challenges

In preparation for the evaluation, Andorra is actively addressing weak points, focusing on:

• Enhancing transparency
• Improving access to information
• Updating legislation

Challenges:

• Implementing uniform legislation across diverse administrative entities

As MONEYVAL continues its assessment, Andorra’s future stance on financial crime will be shaped by the evaluation’s outcome in a global climate increasingly demanding transparency and stricter regulations.