Financial Crime World

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Andorra: Protecting Your Finances from Crime

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In a bid to strengthen anti-financial crime programs, financial institutions in Andorra must ensure they have a robust risk assessment methodology and process in place. This comes as the global financial crisis has highlighted the importance of understanding money laundering, terrorist financing, and sanctions risks.

The Importance of Risk Assessment

The Financial Action Task Force (FATF) recommends that financial institutions take a proactive, risk-based approach to anti-money laundering (AML) and sanctions. A formal and bespoke risk assessment is critical to this effort, as examiners and agencies regularly use it to assess compliance with the Bank Secrecy Act (BSA) and AML requirements.

Prioritizing Risk Assessments

To ensure compliance, financial institutions in Andorra must prioritize risk assessments that:

  • Demonstrate an understanding of the institution’s risk profile
  • Place renewed emphasis on the risk assessment methodology and process
  • Ensure a clear and accurate understanding of inherent and residual risks
  • Build risk assessments based on relevant data

Designing an Effective Anti-Financial Crime Program

Building a risk-focused approach to compliance requires key components such as:

  • A comprehensive understanding of money laundering and terrorist financing risks
  • Identification of emerging risks and implementation of targeted controls
  • Regular independent testing processes

The Path Forward for Andorra’s Financial Institutions

To stay ahead of the curve, financial institutions in Andorra must prioritize flexibility in their risk assessment processes. This will enable them to adapt to changing regulatory expectations and industry practices.

Expert Support for Andorran Financial Institutions

Oliver Wyman, a leading consulting firm, can help Andorran financial institutions navigate these evolving needs. With a global team of experts, Oliver Wyman has delivered impactful results for financial institutions worldwide.

Contact us today to learn more about how we can support your anti-financial crime program in Andorra. {::options parse_block_html=“true” /}