What is money laundering?

Money laundering is the act of converting or transmitting money, assets or securities that come directly or indirectly from any criminal activity punishable with imprisonment, with a minimum limit of more than six months, or from any crime related to prostitution; trafficking in human organs, tissues, cells or gametes; human trafficking and trafficking of minors; fraud, embezzlement and mismanagement; punishable insolvencies; intellectual and industrial property; use of privileged information; fraud against the Andorran Social Security Fund; smuggling; market manipulation; aggravated tax crime; trafficking of illegal immigrants; trafficking of weapons, ammunition and explosives; trafficking of harmful substances;

trafficking of illegal toxic drugs; environment and natural resources; trafficking of protected flora and endangered or protected species; illicit associations; extortion and illegal levies; corruption and influence peddling; illegal financing of political parties; squandering of public funds; or falsification of documents; knowing their origin, with the purpose of concealing or disguising their illicit origin or of helping any person who has participated in the commission of the crime to evade the legal consequences of their acts.

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Which is the regulatory body in Andorra for the Prevention of Money Laundering and the Financing of Terrorism?

The Financial Intelligence Unit of Andorra (UIFAND) is the competent body to promote and coordinate measures to prevent and fight against money laundering, against terrorist financing and against the proliferation of weapons of mass destruction.

It was created in 2000 and began its functions in July 2001.

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What are the functions of UIFAND?

• Direct and promote activities for the prevention and fight against the use of financial system entities or other types of entities in the country for money laundering or terrorist financing.
• Request any information or documents from obliged subjects in the exercise of its functions.
• Carry out on-site inspections at the premises of obliged subjects.
• Request and receive any information from the Police or any official body within the limits of its mission.
• Collect, compile and analyze declarations from obliged subjects as well as all written or verbal communications received and make an assessment of the facts.
• Order the blocking of transactions it deems appropriate, when there are indications of an act of money laundering or terrorist financing.
• Cooperate with other foreign bodies.
• Sanction administrative infringements established by law.

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Who are the obliged subjects under the law?

The law applies to the following obliged subjects:

Financial obliged subjects, which are natural or legal persons belonging to the following categories:

• Operational entities of the financial sector;
• Insurance companies authorized to operate in the life branch;
• Insurance brokers, natural or legal persons who, in exchange for remuneration, carry out insurance mediation activity in the life branch;
• Postal giro institutions;
• Branches located in Andorra of the obliged subjects indicated in points a) to d), regardless of where their central administration is located.

The following natural or legal persons, in the exercise of their professional activity:

• External accountants, tax advisors and auditors;
• Notaries, lawyers and members of other independent legal professions, when they participate, acting on behalf of their client, in any financial or real estate transaction, or assisting in the planning or execution of operations on behalf of their client, related to:
  • The sale or other disposal of real estate or entities;
  • The management of funds, securities or other assets of the client;
  • The opening or management of bank accounts, savings accounts or securities accounts;
  • The organization of contributions necessary for the creation, operation or management of companies;
  • The creation, operation or management of trusts, companies, associations, foundations or similar structures;
  • Economists, managers and service providers to companies, other legal entities, legal instruments of trust and other fiduciary structures;
• Real estate agents who carry out activities related to the sale of real estate;
• Persons trading in goods only to the extent that payments are made or received in cash in amounts equal to or greater than 10,000 euros, whether carried out in a single transaction or in several related transactions;
• Casinos, both physical and online;
• Associations, foundations and other non-profit entities under the terms established by the first additional provision of Law 14/2017, of June 22, on the prevention and fight against money laundering and terrorist financing.
• Trustees or persons exercising an equivalent role in legal structures similar to trusts on a non-professional basis.

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Money laundering prevention policy in the MoraBanc group

MoraBanc, in order to prevent the use of its Group, including Mora Assegurances, SAU, to conceal the illegal origin of funds, as well as to comply with legal obligations as necessary, has specific policies regarding the prevention of money laundering and the financing of terrorist activities.

The Money Laundering and Terrorist Financing Prevention Policy is based on the following points:

• Identification and knowledge of clients and their economic and professional activities.
• Ongoing monitoring of operations and business relationships with clients.
• Existence of an internal control and communication body.
• Implementation of written internal procedures with specific profiles and roles.
• Extension of the culture of prevention to all MoraBanc Group staff through specific training activities and periodic reminders.
• Communication to the competent authorities in accordance with the procedure established at any given time by the regulatory body.

More information on the prevention of money laundering and terrorist financing is available on the website of the Financial Intelligence Unit of Andorra: www.uifand.ad

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