Andorra Fails to Meet International Standards on Anti-Money Laundering and Terrorist Financing
A recent report by MONEYVAL, the Council of Europe’s anti-money laundering (AML) and counter-terrorism financing (CFT) monitoring body, has highlighted Andorra’s failure to meet international standards in these areas.
Major Deficiencies Found in AML/CFT Framework
The report found that Andorra does not require reporting entities to conduct risk assessments prior to launching new products, practices, or technologies, nor do they take appropriate measures to manage and mitigate identified risks. This is a major deficiency in the country’s AML/CFT framework.
- Lack of risk assessment requirements for reporting entities
- Inadequate measures to manage and mitigate identified risks
Progress Made but Deficiencies Remain
Despite making some progress in addressing other deficiencies, Andorra still lacks a definition of “virtual asset service providers” (VASPs) and has not yet adopted legislation regulating VASPs and virtual assets. As a result, the country remains non-compliant with Recommendation 15 of the Financial Action Task Force (FATF), which sets out international standards for AML/CFT.
- Lack of definition of “virtual asset service providers” (VASPs)
- Failure to adopt legislation regulating VASPs and virtual assets
Efforts to Address Deficiencies Ongoing
The report noted that Andorra had initiated amendments to its AML/CFT law aimed at regulating VASPs and virtual assets, but these have not yet been adopted. The country is encouraged to continue its efforts to address the remaining deficiencies and bring its AML/CFT framework in line with international standards.
Enhanced Follow-up and Future Reporting
Andorra will remain in enhanced follow-up by MONEYVAL and will report back on its progress in one year’s time.