Financial Crime World

Title: Andorra’s Battle against Financial Crime and Tax Evasion: MONEYVAL Evaluates Progress

Subtitle: The fifth round mutual evaluation report on Andorra reveals the Principality’s advancements in AML and CFT measures.

Andorra: A European Microstate Between France and Spain

Andorra, a small European microstate, has completed its fifth round mutual evaluation by the MONEYVAL Committee. The March 6-18, 2017, on-site visit report, adopted at the 54th Plenary Session on September 28, 2017, offers an insight into Andorra’s anti-money laundering (AML) and countering the financing of terrorism (CFT) measures.

Compliance with FATF Recommendations and Effectiveness of AML/CFT System

The report assesses Andorra’s level of compliance with the Financial Action Task Force (FATF)’s 40 Recommendations and evaluates the effectiveness of its AML/CFT system. It proposes improvements to reinforce its financial crime prevention strategy.

Significant Progress in Identifying and Reporting Suspicious Transactions

Andorra has made considerable progress in identifying, reporting, and freezing suspicious transactions since the last evaluation round in 2012. New legislations, an enhanced role for the Financial Intelligence Unit (FIU), and international cooperation are some key measures.

Areas of Concern and Opportunities for Improvement

However, the report highlights concerns regarding the reliability and timeliness of information supplied to the FIU. Additionally, there is a need for improvements in:

  1. Customer due diligence measures
  2. Beneficial ownership of legal persons and trusts

Commendable Progress in Certain Areas

Despite challenges, the report recognizes Andorra’s advancements in several areas, including:

  1. The judiciary’s capacity to effectively investigate and prosecute money laundering offenses
  2. The authorities’ resolve to improve the regulatory framework for money service businesses

Further Strengthening AML/CFT System and Commitment to Global Fight Against Financial Crime

In an increasingly complex financial landscape, it is more important than ever for jurisdictions like Andorra to fortify their AML/CFT systems and maintain their commitment to the global fight against financial crime. The MONEYVAL evaluation report serves as a crucial guide, offering recommendations to further enhance Andorra’s financial crime prevention strategy. The future promises continued progress and collaboration in the pursuit of a more transparent and secure financial system.