Financial Crime World

Andorra’s Anti-Money Laundering Landscape: A MONEYVAL Report

Andorra, the European micro-state between Spain and France, is known for its financial acumen. However, the Principality has faced pressure from international organizations to strengthen its anti-money laundering (AML) and countering the financing of terrorism (CFT) measures. In a recent evaluation report by the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), Andorra’s AML/CFT system was assessed. This article summarizes the key findings of the report.

The MONEYVAL Evaluation (March 2017)

The MONEYVAL report, published in [Year], evaluates Andorra’s adherence to the 40 FATF Recommendations and assesses the effectiveness of its current AML/CFT framework. The evaluation was conducted between 6 and 18 March 2017.

Key Findings

Progress and Challenges

  • Adoption of National Risk Assessment (NRA): Andorra adopted its NRA and action plans to address AML/CFT risks in December 2016. The document is comprehensive but lacks focus on foreign subsidiaries of Andorran banks.
  • Political commitment: Legislation to criminalize tax crimes and revise the Law on international cooperation in criminal matters and the fight against money laundering and the financing of terrorism is underway.

Financial Intelligence Unit and Law Enforcement Cooperation

  • Unitat d’Intelligència Financera d’Andorra (UIFAND): UIFAND plays a crucial role in developing investigations of money laundering cases with high-quality analyses and conclusions, as evidenced by a good ratio of suspicious activity reports (SARs) to investigations initiated.
  • Law enforcement: The small law enforcement and magistrates’ community facilitates effective communication, cooperation, and coordination. High professional standards are reflected in investigations and prosecutions of a wide range of ML cases.

Challenges and Concerns

  • Number of investigations and convictions: The modest number of investigations initiated and subsequent convictions obtained raises concern. Andorra’s current workload, the complexity of cases, limitations imposed by non-incrimination of certain FATF-listed predicate offenses, and insufficient evidence regarding PF risks and robust export controls necessitate further strengthening of institutional and legal frameworks.
  • Residual challenges: Key challenges that remain include addressing risks in the activities of foreign subsidiaries, strengthening strategic cooperation and coordination of supervisory activities, expanding comprehensive asset-sharing mechanisms, and tackling insufficient evidence regarding PF risks and robust export controls.

The MONEYVAL report offers valuable insights into Andorra’s AML/CFT framework and serves as a roadmap for continued improvements.

## References
- Council of Europe, Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) ([Year]). Andorra 4th round mutual evaluation report. Strasbourg: MONEYVAL Publications.

This article is intended for informational purposes only, and should not be considered as professional legal or financial advice. For accurate and up-to-date information on AML/CFT regulations, please consult the relevant authorities and legal professionals.