Financial Crime World

Andorra Tightens Its Grip on Money Laundering and Financial Crime

Andorra, a small principality nestled in the Pyrenees mountains between France and Spain, has strengthened its anti-money laundering (AML) measures to bolster its reputation as a stable and secure financial hub.

At the heart of Andorra’s AML efforts is the Law on the Prevention and Fight against Money Laundering and the Financing of Terrorism, enacted in 2010. This legislation establishes the obligations of financial institutions, designated non-financial businesses and professions (DNFBPs), and other entities to prevent and detect money laundering activities.

Financial Institutions Under Scrutiny

Financial institutions in Andorra, including banks, insurance companies, and investment firms, are subject to strict AML regulations. They must implement robust customer due diligence (CDD) procedures, including:

  • Identification and verification of customers’ identities
  • Monitoring of transactions
  • Reporting of suspicious activities to the Financial Intelligence Unit (FIU)

DNFBPs Also Required to Conduct CDD

DNFBPs, such as lawyers, accountants, real estate agents, and casinos, are also required to conduct CDD measures, including:

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

The Financial Intelligence Unit (FIU) Plays a Crucial Role

The FIU plays a crucial role in Andorra’s AML framework, responsible for:

  • Receiving and analyzing information on suspicious transactions
  • Disseminating information to relevant law enforcement and supervisory authorities
  • Collaborating with international counterparts and participating in global initiatives to combat money laundering and terrorist financing

International Cooperation and Membership

Andorra has actively engaged in international cooperation, recognizing the importance of collaboration in the fight against financial crime. 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.

FATF Evaluation and International Agreements

Andorra’s commitment to AML measures has been acknowledged by the FATF, which has evaluated the country’s compliance with international standards. The country has also signed various international agreements and treaties on mutual legal assistance and extradition, facilitating the exchange of information and cooperation with other countries in AML investigations and prosecutions.

Conclusion

By strengthening its AML framework, Andorra aims to maintain the integrity of its financial system and protect against illicit activities. The country’s efforts demonstrate its commitment to combating money laundering and terrorist financing, making it an attractive destination for businesses seeking a secure and stable environment.