Andorra Makes Significant Progress in Combating Financial Crime and Non-Profit Sector Improvement

Strasbourg - Andorra’s Efforts Recognized by MONEYVAL

Andorra has made notable strides in combating money laundering and terrorist financing, with a significant upgrade in its compliance rating for non-profit organizations, according to a follow-up report published by MONEYVAL.

Progress in Addressing Shortcomings

The report assesses the country’s progress in addressing shortcomings identified during a 2017 evaluation. MONEYVAL praised Andorra’s efforts to strengthen its risk assessment of the non-profit sector and improve supervision and regulation in this area.

Compliance Rating Upgrade

As a result of its assessment, MONEYVAL upgraded Andorra’s compliance rating with FATF recommendations concerning non-profit organizations from “partially compliant” to “largely compliant”.

Implementation of New International Requirements

The report also examines Andorra’s implementation of new international requirements for virtual assets. Although the country was initially deemed “compliant”, it has since been downgraded to “partially compliant” due to minor deficiencies.

Overall Compliance Status

Andorra has achieved full compliance with nine of the forty FATF recommendations constituting the international AML/CFT standard, and retains “largely compliant” ratings for twenty-eight others. Three recommendations remain “partially compliant”, while Andorra has no “non-compliant” ratings.

Limitations of MONEYVAL’s Assessment

The report does not assess the effectiveness of these reforms in practice, as MONEYVAL’s procedural limitations only allow for an examination of formal changes to legislative, regulatory, and institutional frameworks.

Future Reporting Obligations

Andorra is expected to report back to MONEYVAL on further progress in strengthening its implementation of AML/CFT measures within the next year.