Financial Crime World

Andorra Takes Major Step in Combating Money Laundering and Terrorist Financing

Strasbourg, December 7, 2021

Andorra has made significant progress in strengthening its measures to combat money laundering and terrorist financing, particularly in the non-profit organisations sector. According to a follow-up report published by MONEYVAL today, Andorra’s efforts have led to an upgrade of its compliance rating with Financial Action Task Force (FATF) recommendations concerning non-profit organisations from “partially compliant” to “largely compliant”.

Key Findings

  • Andorra has made improvements in implementing new international requirements for virtual assets established in a revised FATF recommendation.
  • However, its rating on the implementation of this revised recommendation has been downgraded from “compliant” to “partially compliant”.
  • The country has achieved full compliance with nine out of 40 FATF recommendations constituting the international Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) standard.
  • Andorra retains minor deficiencies in the implementation of 28 recommendations where it has been found “largely compliant”. Three recommendations remain “partially compliant”, while Andorra has no “non-compliant” ratings.

Progress and Challenges

Andorra’s risk assessment of the non-profit organisations sector has improved, and its supervision and regulation have been strengthened. The country has implemented a range of legislative, regulatory, and institutional measures to combat money laundering and terrorist financing.

However, Andorra still faces challenges in implementing some FATF recommendations. MONEYVAL has identified areas for improvement, including the need for further progress in strengthening the implementation of AML/CFT measures.

Next Steps

Andorra is expected to report back to MONEYVAL on further progress to strengthen its implementation of AML/CFT measures within the next year. The country will also continue to work towards achieving full compliance with all FATF recommendations.

Access the Full Report

The full follow-up report, published by MONEYVAL, can be accessed at [link to the report].