Andorra Receives Improved Rating for AML/CFT Efforts

The Andorran authorities have made significant progress in addressing deficiencies in their anti-money laundering and combating the financing of terrorism (AML/CFT) regime, leading to an improved rating from “Partially Compliant” to “Large Category” with a rating of R.20.

Improvements Made by Andorra

According to the latest assessment by the international financial watchdog, Andorra has taken steps to address concerns related to shortfalls in its AML/CFT requirements for designated non-financial businesses and professions (DNFBPs). Specifically, the authorities have:

• Expanded CDD Measures: The scope of customer due diligence (CDD) measures has been expanded to cover all DNFBPs, including casinos and trust and company service providers.
• Stricter CDD Requirements for Casinos: Stricter CDD requirements have been introduced for casinos, with a lower transaction threshold of EUR 2,000 or more.
• Strengthened Record-Keeping Provisions: Strengthened record-keeping provisions have been put in place for reporting entities.
• Improved Auditing Requirements: Improved auditing requirements have been implemented for non-financial entities.

Commitment to Implementing Effective Measures

While some minor shortcomings remain, the Andorran authorities have made significant progress in addressing the deficiencies identified in their AML/CFT regime. The re-rating reflects the country’s commitment to implementing effective measures to prevent money laundering and terrorist financing.

Positive Impact for International Partners

The improved rating is a welcome development for international partners and financial institutions, which will benefit from greater confidence in Andorra’s AML/CFT framework. The authorities’ efforts demonstrate a strong commitment to upholding global standards and ensuring the integrity of the financial system.