Financial Crime World

Money Laundering in Andorra: What You Need to Know

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Located in the heart of the Pyrenees, Andorra has taken a strong stance against money laundering and terrorism financing as a member of the international community. In this article, we will explore what money laundering is, the measures Andorra has implemented to prevent it, and who is required to comply with these regulations.

What is Money Laundering?

According to the Financial Intelligence Unit of Andorra (UIFAND), money laundering is the act of converting or transmitting money, goods, or securities that come from any criminal activity into a legitimate form. This can include hiding or concealing the illicit origin of funds, as well as assisting individuals involved in criminal activities to avoid legal consequences.

The Financial Intelligence Unit of Andorra (UIFAND)

As the regulatory organization responsible for preventing and combating money laundering and terrorism financing, UIFAND was established in 2000 and began operations in July 2001. The unit’s main functions include:

  • Promoting and coordinating prevention measures
  • Managing and analyzing data
  • Conducting on-site inspections
  • Requesting information from reporting parties
  • Punishing administrative offenses

Reporting Parties Required to Comply with Regulations

According to Andorran law, the following entities and individuals are required to report suspicious transactions:

  • Financial services providers
  • Insurance companies
  • Post office giro institutions
  • External accountants, tax advisers, and auditors
  • Notaries, lawyers, and other liberal legal professionals
  • Economists, managers, and service providers of companies
  • Real estate agents
  • Casinos and online gambling sites
  • Associations, foundations, and other non-profit entities

MoraBanc’s Policy on Preventing Money Laundering and Terrorism Financing

MoraBanc, one of Andorra’s largest banks, has implemented its own policies on preventing money laundering and terrorism financing. The bank’s policy is based on several key principles, including:

  • Identifying and knowing clients
  • Constant follow-up of operations
  • Internal control and communication
  • Implementation of written procedures
  • Spread of prevention culture to staff
  • Communication with relevant authorities

Additional Resources

For more information on the prevention of money laundering and terrorism financing in Andorra, please visit the Financial Intelligence Unit’s website at www.uifand.ad.