Financial Crime World

Andorra Tightens Belts on Money Laundering: Compliance Measures in the Principality

Introduction

In a bid to combat financial crime and terrorism financing, Andorra has strengthened its anti-money laundering (AML) framework. The country’s small but significant progress in this area is a testament to its commitment to maintaining the integrity of the global financial system.

The AML Framework: Law on Prevention and Fight Against Money Laundering and Terrorist Financing

Enacted in 2010

Andorra’s anti-money laundering law establishes strict obligations for financial institutions, designated non-financial businesses and professions (DNFBPs), and other entities to prevent and detect money laundering activities.

Key Obligations for Financial Institutions

  • Implement robust customer due diligence (CDD) procedures
    • Identify and verify customers’ identities
    • Monitor transactions
    • Report suspicious activities to the Financial Intelligence Unit (FIU)

Designated Non-Financial Businesses and Professions (DNFBPs)

  • Conduct CDD measures, including:
    • Identifying beneficial owners
    • Implementing internal controls
    • Reporting suspicious transactions to the FIU

Customer Due Diligence: A Key Component of Andorra’s AML Framework

Financial institutions and DNFBPs must conduct thorough due diligence on customers to ensure they are not involved in money laundering or terrorist financing activities.

The Financial Intelligence Unit (FIU): A Crucial Role in the AML Framework

  • Receives, analyzes, and disseminates information on suspicious transactions
  • Provides relevant law enforcement and supervisory authorities with critical insights

International Initiatives: Andorra’s Commitment to Combating Money Laundering

Andorra is a member of the Financial Action Task Force (FATF) and has undergone mutual evaluations by the FATF to assess its compliance with global standards.

By participating in international initiatives and cooperating with other countries, Andorra contributes to the global efforts to maintain the integrity of the financial system and protect against illicit activities.