Up in the Alps: Andorra

Tiny, mountainous and very welcoming to high net worth individuals, Andorra would appear to fit the stereotype of the money laundering haven. On balance, AML specialists say that would be a wrong view, says Alan Osborn, but the dominant culture of secrecy around financial matters makes it hard to know.

A recent US State Department report mentions a rumour that Colombians used to launder drug cash in Andorra but no one we spoke to, inside or outside the jurisdiction, was able to shed any further light on this story. In terms of fiscal crime, strict residency laws limit its use as a tax haven.