Andorra: A Global Leader in Money Laundering Prevention according to Basel Institute Report

Andorra’s Top Position in the Basel Institute’s Annual Report

Andorra, the European microstate located between France and Spain, has taken the leading position in the latest annual report by the Basel Institute of Governance when it comes to money laundering and terrorist financing prevention. With a score that outperformed 109 other jurisdictions, Andorra solidified its reputation as a global role model in combating financial crimes.

The Basel Institute’s Evaluation Criteria

The Basel Institute, an independent, non-profit organization focused on anti-corruption, assessed the risk of money laundering and terrorist financing for the countries based on 17 indicators across five domains:

1. Quality of AML frameworks
2. Bribery and corruption risks
3. Financial transparency and compliance with standards
4. Public transparency and accountability
5. Legal and political risks

Andorra’s Progress in Anti-Money Laundering Measures

Andorra’s success story doesn’t come as a surprise since the European principality has been making significant strides in improving its anti-money laundering framework for years. In 2018, it ceased to be deemed a tax haven by the Organisation for Economic Co-operation and Development (OECD). Following this designation, Andorra has developed an extensive system to prevent money laundering, establishing a new benchmark for other countries to follow.

The Importance of High Compliance with Regulations

The report emphasizes the value of having strong laws against money laundering while maintaining high levels of compliance with these regulations. Many countries with extensive legal frameworks often struggle to effectively enforce them, resulting in lower rankings.

A Call to Action for Governments

This recognition of Andorra’s achievement serves as a call-to-action for governments worldwide. It’s crucial for them to prioritize financial crimes prevention and allocate sufficient resources to stay abreast of international trends and comply with necessary standards.

Andorra’s Safe and Modern Business Hub Reputation

The latest ranking only further solidifies Andorra’s reputation as a dependable, modern, and internationally recognized business hub. By upholding high anti-money laundering standards, the country continues to attract investors, who appreciate its stability and unique advantages.