Moneyval recently published it fifth round mutual evaluation report on Andorra to assess the compliance with FATF 40 Recommendations.
The report found that in Andorra there is the political will and commitment to make substantial changes to domestic legislation and regulation to ensure compliance with Andorra’s international obligations. The implementation of action plans is well advanced and there is effective communication and cooperative work between the domestic organisations with responsibility for financial intelligence and the local law enforcement authority.
Moneyval assessed that there was a good ratio of investigations to the number of suspicious activity reports made in the jurisdiction. The investigations were praised as being completed to a high professional standard with a wide range of money laundering case being prosecuted, all of which was consistent with Andorra’s risk profile.
The report commented only that the number of successful prosecutions was ‘modest’ and the proceedings could be long, while nonetheless praising the deterrent punishments and the proactive approach of the authorities in other areas, in particular the seizure of assets.
It was also noted that effective action has been taken to prevent the misuse of Andorran companies through the involvement of Andorran notaries, the requirement to hold an Andorran bank account and the control exercised by the Ministry of Commerce.
Furthermore, international cooperation by the Andorran authorities, their willingness to be proactive in seeking foreign assistance and communication with foreign authorities was rated as very good with the financial intelligence unit commended for what it has achieved since the last report.
Overall the report found that Andorra has enacted a robust legal framework and regulatory and supervisory regime in accordance with international standards. Large financial institutions in the jurisdiction understand their obligations and have a strong commitment to anti-money laundering. While certain areas of anti-money laundering and action against terrorist financing could be improved the report provides a positive and compliant picture of the Andorran regulatory environment.
Moneyval is the entity of the Council of Europe, Committee of Experts on the Evaluation of Anti-Money Laundering Measures, which is required to inspect and assess European nations’ compliance with international standards to prevent money laundering and the financing of terrorism. The aim of its reports and evaluations is to assist states in improving their procedures and the capacity to prevent money laundering and the financing of terrorism.
If you have any queries about residence or business in Andorra please contact Philippe Ogier at firstname.lastname@example.org
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