Financial Crime World

Andorra Takes Steps to Boost Fight Against Money Laundering and Terrorist Financing in Non-Profit Sector

Strasbourg, December 7, 2021 - Andorra Makes Significant Progress

According to a new report by the MONEYVAL monitoring body, Andorra has made significant progress in its efforts to combat money laundering and terrorist financing, particularly in the non-profit sector. The country’s improved measures have led to an upgrade in its compliance rating with international standards set by the Financial Action Task Force (FATF).

Enhanced Risk Assessment and Strengthened Supervision

The report highlights Andorra’s enhanced risk assessment of the non-profit organizations sector and its strengthened supervision and regulation in this area. The country has implemented a range of legislative, regulatory, and institutional measures to address shortcomings identified in a previous evaluation.

Compliance with International Standards

As a result, Andorra has achieved full compliance with nine out of 40 FATF recommendations, which form the international standard for anti-money laundering and combating the financing of terrorism (AML/CFT). However, it still faces minor deficiencies in implementing 28 recommendations, where it is rated “largely compliant”. Three recommendations remain “partially compliant”, while Andorra has no non-compliant ratings.

Future Plans

The report does not assess the effectiveness of these reforms in practice due to procedural limitations. Andorra is expected to report back to MONEYVAL on further progress in strengthening its AML/CFT measures within a year.

International Cooperation and Commitment

This development comes as part of Andorra’s efforts to maintain international cooperation and adhere to global standards for combating money laundering and terrorist financing. The country’s commitment to these goals is crucial in preventing the misuse of financial systems and maintaining public trust.

Key Points:

  • Andorra has made significant progress in combating money laundering and terrorist financing, particularly in the non-profit sector.
  • The country has achieved full compliance with nine out of 40 FATF recommendations.
  • Minor deficiencies remain in implementing 28 recommendations, where it is rated “largely compliant”.
  • Three recommendations remain “partially compliant”, while Andorra has no non-compliant ratings.
  • Andorra will report back to MONEYVAL on further progress within a year.