Financial Crime World

Andorra Strengthens AML Framework to Combat Financial Crime

The Principality of Andorra has taken significant steps to enhance its anti-money laundering (AML) measures, demonstrating its commitment to combating financial crime and terrorism financing.

According to sources within the country’s regulatory bodies, Andorra has implemented a comprehensive legal framework to combat money laundering and terrorist financing. The main legislation governing AML in the country is the Law on the Prevention and Fight against Money Laundering and the Financing of Terrorism, enacted in 2010.

Key Provisions

  • Establishes the obligations of financial institutions, designated non-financial businesses and professions (DNFBPs), and other entities to prevent and detect money laundering activities.
  • Creates the Financial Intelligence Unit (FIU) as the central authority responsible for receiving, analyzing, and disseminating suspicious transaction reports.

Strict Regulations for Financial Institutions

Financial institutions in Andorra, including banks, insurance companies, and investment firms, are subject to strict AML regulations. These include:

Customer Due Diligence Procedures

  • Identification and verification of customers’ identities
  • Monitoring of transactions
  • Reporting of suspicious activities to the FIU

Obligations for DNFBPs

DNFBPs, such as lawyers, accountants, real estate agents, and casinos, are also subject to AML obligations. These include:

Conducting CDD Measures

  • Identification of beneficial owners
  • Implementation of internal controls
  • Reporting of suspicious transactions to the FIU

International Cooperation

Andorra’s AML framework has been strengthened through international cooperation. The country is a member of the Financial Action Task Force (FATF), an intergovernmental organization that sets global standards for AML and counter-terrorist financing.

Mutual Evaluations

The country has undergone mutual evaluations by the FATF to assess its compliance with these standards.

Experts’ Views

According to experts, Andorra’s commitment to combating financial crime and terrorism financing is a positive step towards maintaining the integrity of the financial system. By actively participating in international initiatives and cooperating with other countries, Andorra contributes to global efforts to protect against illicit activities.

Quotes from FIU Spokesperson

“We are committed to working closely with our international partners to combat money laundering and terrorist financing. Our laws and regulations are designed to prevent and detect these crimes, and we will continue to strengthen our measures to ensure that Andorra remains a safe and secure place to do business.”