Financial Inclusion and Crime Prevention in Andorra: A Regulatory Framework

Andorra, a small principality nestled in the Pyrenees mountains, has made significant strides in preventing money laundering and terrorism financing. The country’s regulatory framework is designed to ensure that its financial system remains transparent and secure.

What is Money Laundering?

Money laundering refers to the act of converting or transmitting funds derived from criminal activities into legitimate assets. This can involve a range of crimes, including corruption, human trafficking, and terrorism financing.

The Financial Intelligence Unit of Andorra (UIFAND)

UIFAND is responsible for promoting and coordinating anti-money laundering efforts in Andorra. Established in 2000, the unit has implemented various measures to prevent money laundering and terrorism financing.

Key Functions:

• Manage and promote prevention activities
• Request information from reporting parties
• Conduct on-site inspections
• Gather and analyze statements from reporting parties
• Order the blockade of operations deemed suspicious

Who are Reporting Parties?

The following individuals or entities are subject to the Anti-Money Laundering Act:

Financial Services:

• Entities operating in the financial system
• Insurance companies authorized to operate in life insurance
• Insurance brokers
• Post office giro institutions

Natural Persons or Legal Entities Engaged in Certain Professions:

• External accountants, tax advisers, and auditors
• Notaries, lawyers, and members of other liberal legal professions
• Economists, managers, and service providers
• Real estate agents

Prevention Measures

Andorra has implemented various prevention measures to combat money laundering and terrorism financing. These include:

International Cooperation in Criminal Matters

• Enhancing international cooperation to prevent and combat crime

Prevention of the Laundering of Money or Securities Constituting the Proceeds of International Crime

• Implementing measures to prevent the laundering of funds derived from international crime

Regulation to the Anti-Money Laundering Act

• Strengthening the regulation of anti-money laundering efforts in Andorra

MoraBanc’s Policy on Prevention

MoraBanc, a leading bank in Andorra, has implemented specific policies to prevent money laundering and terrorism financing. These include:

Identification and Knowledge of Clients and Their Professional Activities

• Ensuring the accurate identification and knowledge of clients and their professional activities

Constant Follow-up of Operations and Business Relations with Clients

• Continuously monitoring operations and business relationships with clients

Existence of an Internal Control and Communication Body

• Establishing a robust internal control and communication system

Implementation of Internal Procedures

• Developing and implementing specific procedures to prevent money laundering and terrorism financing

Andorra’s regulatory framework provides a strong foundation for preventing money laundering and terrorism financing in the country. Through its implementation of international cooperation, regulation of anti-money laundering efforts, identification of reporting parties, prevention measures, and specific policies from financial institutions like MoraBanc, Andorra can effectively protect its financial system.