New legislation has been passed to modify and clarify existing legislation affecting foreign investment companies and their beneficial ownership. The changes are part of the government’s continuing policy to continue to meet international obligations to prevent money laundering, the financing of terrorism modernize the law to promote economic activity to encourage entrepreneurs within the Principality, as well as, promoting economic activity.
Regulations require that the details of the beneficial owners of all Andorran companies be kept and maintained in a Register of Beneficial Interests with the obligation on companies to make formal notification to the Registrar of all changes to their ownership. The Register is not be open to public inspection, with access limited to individuals and organisations that can demonstrate a legitimate interest.
The Ministry of the Economy is now required to notify Andorran Financial Intelligence Unit (UIFAND) when it considers it necessary for UIFAND to investigate and report on an application for foreign investment into Andorra. Previously, UIFAND was required to investigate and report all foreign investment, a requirement that was considered largely unnecessary, when 99% of requests did not give rise to any cause for concern.
The Minister of Finance, Mr Jordi Cinca confirmed that these changes were made on the advice of FAFT and Moneyval to improve transparency and prevent the opacity of corporate entities, and foundations in Andorra in compliance with international best practice and international obligations.
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