Article 4 Law 14/2017 “Risk assessment by the authorities”

The UIFAND coordinates the adoption of the appropriate national measures to identify, assess, understand and mitigate the risks of money laundering and terrorist financing. This evaluation is periodically reviewed and, particularly, when there are major events or developments.

After carrying out the risk assessment referred to in paragraph 1, competent authorities take the appropriate measures to:

a) prevent or mitigate money laundering and terrorist financing on a risk-based approach;

b) improve the national system of prevention and fight against money laundering and terrorist financing, in particular by identifying any areas where parties under obligation are to apply enhanced measures and, where appropriate, specifying the measures to be taken;

c) identify, where appropriate, sectors or areas of lower or greater risk of money laundering and terrorist financing;

d) allocate and prioritise the resources to combat money laundering and terrorist financing;

e) promote drafting appropriate rules for each sector or area, in accordance with the risks of money laundering and terrorist financing;

f) promote drafting appropriate rules for each sector or area, in accordance with the risks of money laundering and terrorist financing;

g) report, where applicable, to the appropriate national and international institutions and bodies, on the institutional structure and broad procedures of their AML/CFT regime, including, the UIFAND, the tax authorities and prosecutors, as well as the allocated human and financial resources to the extent that this information is available;

h) report, where applicable, to the appropriate national and international institutions and bodies on national efforts and resources (labour forces and budget) allocated to combat money laundering and terrorist financing.

For the purposes of contributing to the preparation of risk assessment, UIFAND may request the information deemed appropriate to maintain comprehensive statistics to identify and evaluate the risks of money laundering and terrorist financing and the effectiveness of the system.

These statistics include, among others:

a) data measuring the size and importance of the different sectors which fall within the scope of this Law, including the number of entities and persons and the economic importance of each sector;

b) data measuring the reporting, investigation and judicial phases of the national system of prevention and fight against money laundering and terrorist financing, including the number of suspicious transaction reports made to the UIFAND, the follow-up given to those reports and, on an annual basis, the number of cases investigated, the number of persons prosecuted, the number of persons convicted for money laundering or terrorist financing offences, the types of predicate offences, where such information is available, and the value in euro of property that has been frozen, seized or confiscated;

c) if available, data identifying the number and percentage of reports resulting in further investigation, together with the annual report to parties under obligation detailing the usefulness and follow-up of the reports they presented;

d) data regarding the number of cross-border requests for information that were made, received, refused and answered, partially or fully, by the UIFAND and other competent authorities, broken down by country;

e) human resources allocated to the UIFAND and Andorran Financial Authority to fulfil their tasks;

f) number of on-site and off-site supervisory actions, the number of breaches identified through supervisory actions and sanctions and administrative measures adopted by the UIFAND and other competent authorities.

4. The UIFAND shall report the results of the risk assessment to the relevant international bodies. The UIFAND shall make publicly available on the UIFAND website a summary of the assessment that shall not contain classified information.