Andorra Takes Steps to Combat Money Laundering, But Lags Behind in Some Areas

Andorra has made significant progress in implementing anti-money laundering laws and regulations, but still lags behind some of its peers in other areas. According to a recent report by the Financial Action Task Force (FATF), Andorra has largely complied with 14 out of the 40 recommendations set forth by the organization.

Areas of Strength

Andorra excels in assessing risk and applying a risk-based approach, earning it a compliant rating from the FATF. The country has also done well in implementing measures to prevent terrorist financing, including targeted financial sanctions related to terrorism and terrorist financing.

Areas for Improvement

However, Andorra has fallen short in some areas. For instance:

• While it has implemented laws to confiscate proceeds of crime, its record keeping requirements are considered partially compliant with FATF standards.
• The country’s powers of supervisors and regulation and supervision of financial institutions have been deemed partially compliant as well.
• Andorra has struggled with implementing measures to prevent money laundering in certain sectors, such as the real estate industry.
• The country’s transparency and beneficial ownership requirements for legal persons and arrangements have been considered non-compliant by FATF.

Ongoing Efforts

Despite these challenges, Andorra remains committed to strengthening its anti-money laundering regime and has taken steps to improve cooperation with other countries. The country has also made progress in implementing measures to prevent cash couriers from being used for illegal activities.

Conclusion

While Andorra still has work to do to fully comply with FATF recommendations, the country’s efforts are a step in the right direction. As it continues to strengthen its anti-money laundering regime, Andorra can expect to improve its reputation as a trusted and transparent financial center.

Key Takeaways:

• Andorra has made significant progress in implementing anti-money laundering laws and regulations.
• The country excels in assessing risk and applying a risk-based approach.
• Andorra has struggled with implementing measures to prevent money laundering in certain sectors, such as the real estate industry.
• The country remains committed to strengthening its anti-money laundering regime and improving cooperation with other countries.