What is Laundering of money or securities?

Money laundering is the act of converting or transmitting money, goods or securities that come from any criminal activity which results in a prison sentence of over 6 months, or any crime related to prostitution, intellectual and industrial property, usage of privileged information, market manipulation, human trafficking for labour exploitation, illegal trafficking of toxic drugs, environment and natural resources, unlawful associations, extortion or illegal levies, corruption and influence peddling or document falsification, knowing its origin, with the purpose of hiding or concealing its illicit origin or helping any person that may have participated in the crime to escape the legal consequences of their acts.

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Which is the regulatory organisation responsible for Money Laundering Prevention and the prevention of financing of terrorism in Andorra?

The Financial Intelligence Unit of Andorra (UIFAND) is the body responsible for promoting and coordinating the prevention measures and combats against money laundering, against the financing of terrorism and against the proliferation of weapons of mass destruction. It was created in 2000 and started its functions in July 2001.

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Which are UIFAND functions?

UIFAND has, among others, the following training, decision-making and judgement functions:

• Manage and promote prevention activities and the fight against the usage of bodies within the financial system or any other system in the country in order to launder money or finance terrorism.
• Request any kind of information or documents from those reporting parties in the performance of its functions.
• Carry out on-site inspections in those reporting parties’ premises.
• Request and receive any information from the police or any other official body within its mission’s boundaries.
• Gather, collect and analyse statements from the reporting parties, as well as all written or verbal communications and carry out an assessment of the facts.
• Order the blockade of the operations it deems appropriate, in case there are indications of money laundering or terrorism financing acts.
• Cooperate with other foreign organisations.
• Punish the administrative offences as established by the Law.

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Who are the reporting parties in this law?

The following taxpayers are subject to this Act:

1. Financial services, which may be natural persons or legal entities that belong to the following categories:
   1. Entities operating in the financial system.
   2. Insurance companies authorised to operate in the branch of life insurance.
   3. Insurance brokers, which may be natural persons or legal entities that broker life insurance in exchange for remuneration.
   4. Post office giro institutions.
   5. Branches located in Andorra of the taxpayers listed in points a) to d), regardless of the place where they have their head office.
2. The following natural persons or legal entities engaged in the following professions:
   1. External accountants, tax advisers and auditors.
   2. Notaries, lawyers and members of other liberal legal professions who either on their own behalf or on that of a client engage in any financial or real estate transaction, or who assist in planning or conducting transactions on behalf of their clients related to:
      1. The purchase, sale or other means of disposal of real estate or entities.
      2. The management of clients’ funds, securities or other assets.
      3. The opening and handling of bank accounts, savings accounts or securities accounts.
      4. The securing of the funds required to set up, run or manage companies.
      5. The creation, running or management of trusts, companies, associations, foundations or similar institutions.
   3. Economists, managers and service providers of companies, other legal entities, legal trust instruments and other trust structures.
   4. Real estate agents who conduct business related to the purchase and sale of real estate.
   5. Persons who solely trade assets whereby payments are made or received in cash for amounts equal to or above 10,000 euros, whether in a single or various transactions that in any way seem to be related.
   6. Casinos and online gambling sites.
   7. Associations, foundations and other not-for-profit entities run as provided for in the first additional provision to this Act.

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Prevention of funds laundering and financing of terrorism

• Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime, of 29^th December 2000.
• Act 28/2008, of December 11^th, on the modification of the Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime, from 29^th December 2000.
• Act 4/2011, of May 25^th, on the modification of the Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime and against the financing of terrorism, from 29^th December 2000.
• Act 20/2013, of October 10^th, on the modification of the Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime and against the financing of terrorism, of 29^th December 2000.
• Act 4/2014, of March 27^th, on the modification of the Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime and against the financing of terrorism, from 29^th December 2000.
• Act 2/2015, of January 15^th, on the modification of the Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime and against the financing of terrorism, from 29^th December 2000.
• Act 11/2015, of July 16^th, on the modification of the Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime and against the financing of terrorism, of 29^th December 2000.
• Act 11/2015, of 16th July, on the prevention and fight against the laundering of money and securities, and the financing of terrorism.
• Decree of 13^th May 2009 of approval of the Regulation to the Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime and against the financing of terrorism.
• Decree of 18^th May 2011 of modification to the Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime and against the financing of terrorism, approved by the Decree of 13^th May 2009.
• Decree of 20^th November 2013 of modification to the Act on international cooperation in criminal matters and prevention of the laundering of money or securities constituting the proceeds of international crime and against the financing of terrorism, approved by the Decree of 13^th May 2009.

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MoraBanc’s policy on the prevention of money and securities laundering

MoraBanc, in order to avoid the inadvertent use of its financial Group to cover the illegal origin of funds, and in order to fulfil the legal obligations to the extent necessary, has specific policies on prevention of money or securities laundering and financing of terrorist activities.

MoraBanc’s prevention policy on funds laundering and terrorism financing is based on the following points:

• Identification and knowledge of our clients and their professional and economic activities.
• Constant follow-up of operations and business relations with our clients.
• Existence of an internal control and communication body.
• Implementation of internal procedures written with specific roles and profiles.
• Spread of prevention culture to all Grup MoraBanc’s staff through specific training activities and regular reminders.
• Communication with the relevant authorities according to the procedure that the regulatory body has established.

More information about the prevention of funds laundering and financing of terrorism in the Financial Intelligence Unit of Andorra website: www.uifand.ad

Wolfsberg Group CBDDQ Questionnaire

USA Patriot Act

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