Andorra Makes Progress in Anti-Money Laundering Efforts, Says FATF Report

The Financial Action Task Force (FATF) has released a report evaluating Andorra’s efforts to combat money laundering and terrorist financing. The report concludes that the principality has made significant progress in implementing anti-money laundering regulations, but still has areas for improvement.

Progress and Challenges

Andorra received ratings of “partially compliant” or “largely compliant” on 37 out of 40 recommendations from the FATF. The country was found to be non-compliant with three recommendations and partially compliant with one recommendation.

Strengths

• Andorra’s efforts in assessing risk and applying a risk-based approach are praised.
• Cooperation with other countries in combating terrorist financing is commended.
• Measures to prevent the misuse of financial institutions, including requirements for customer due diligence and record keeping, are also recognized.

Areas for Improvement

• Regulation and supervision of financial institutions need strengthening.
• Powers to investigate and prosecute money laundering and terrorist financing offenses require improvement.
• Non-compliance with recommendations related to transparency and beneficial ownership of legal persons and arrangements is noted.

FATF Recommendations

The FATF has called on Andorra to address these deficiencies by:

Strengthening its Anti-Money Laundering Framework

Implement Measures to Prevent the Misuse of Financial Institutions

Andorra’s government has committed to implementing reforms aimed at strengthening its anti-money laundering regime and improving cooperation with international partners.

Conclusion

While Andorra has made progress in combating money laundering, it still faces challenges in fully implementing the technical requirements of the FATF Recommendations. The report concludes that further efforts are needed to ensure effective anti-money laundering measures are in place.