Financial Crime World

Andorra’s Financial Intelligence Unit: Cracking Down on Money Laundering and Terrorism Financing

In the tiny European microstate of Andorra, the Financial Intelligence Unit (UIFAND) is leading the charge against money laundering and terrorism financing. Established in 2000, UIFAND is tasked with promoting and coordinating prevention measures against financial crimes within the country.

Understanding Money Laundering

Money laundering refers to the process of concealing the origin of illegally obtained funds by converting them into legitimate assets. Criminal activities resulting in a prison sentence of over six months or any of the following are considered money laundering:

  • Prostitution
  • Intellectual property
  • Usage of privileged information
  • Market manipulation
  • Human trafficking
  • Toxic drugs
  • Environment and natural resources
  • Unlawful associations
  • Extortion
  • Corruption
  • Influence peddling
  • Document falsification

UIFAND’s Role and Functions

To combat money laundering and terrorism financing, UIFAND manages and promotes prevention activities within Andorra’s financial system and other relevant sectors. They possess the power to:

  1. Request information and documents from reporting parties
  2. Conduct on-site inspections
  3. Cooperate with foreign organizations
  4. Order the blockade of suspicious operations
  5. Punish administrative offenses
  6. Gather, collect, and analyze statements and communications

Reporting Parties

The following institutions and entities are considered reporting parties and fall under UIFAND’s regulatory oversight:

  • Financial services
  • Insurance companies and brokers
  • Post office giro institutions
  • External accountants
  • Tax advisers and auditors
  • Notaries
  • Lawyers
  • Real estate agents
  • Persons trading assets with large cash transactions
  • Casinos
  • Online gambling sites
  • Not-for-profit entities

Andorra’s Legislative Support

Andorra’s commitment to combating money laundering and terrorism financing is reflected in its extensive legislative support, including the following acts and decrees:

  • Act on International Cooperation in Criminal Matters and Prevention of Money or Securities Laundering and Financing of Terrorism

Leading the Charge: MoraBanc

One of the major financial institutions at the forefront of this initiative is MoraBanc. By implementing specific policies to prevent money laundering and terrorism financing, MoraBanc is taking a proactive approach to ensuring its financial group does not inadvertently facilitate the illegal origin of funds. Their prevention policy includes the following elements:

  • Client identification and knowledge
  • Constant follow-up of operations and business relations
  • Internal control and communication body
  • Spread of prevention culture among staff

For more information on Andorra’s efforts to prevent funds laundering and financing of terrorism, visit the Financial Intelligence Unit of Andorra’s website.