Andorra Takes Significant Steps to Combat Money Laundering and Terrorist Financing

Strasbourg, 7 December 2021

The Principality of Andorra has made substantial progress in improving its measures against money laundering and terrorist financing, particularly in the non-profit organization sector. According to a follow-up report published by MONEYVAL, Andorra’s compliance with Financial Action Task Force (FATF) standards has shown significant improvement.

Improved Compliance with FATF Recommendations

Andorra has implemented legislative, regulatory, and institutional reforms aimed at strengthening its risk assessment of non-profit organizations and enhancing supervision and regulation. As a result, MONEYVAL has upgraded Andorra’s rating from “partially compliant” to “largely compliant” on FATF Recommendation 8 concerning non-profit organizations.

Progress in Implementing Virtual Asset Requirements

The follow-up report also examines Andorra’s implementation of new international requirements for virtual assets, including prominent cryptocurrencies and their providers. However, Andorra’s rating on this revised recommendation has been downgraded from “compliant” to “partially compliant”.

Current Status of FATF Recommendations

• Andorra now fully complies with nine out of forty FATF recommendations
• Retains minor deficiencies in the implementation of twenty-eight recommendations where it is considered “largely compliant”
• Three recommendations (new technologies, powers of law enforcement, and international instruments) remain “partially compliant”

Future Progress

While MONEYVAL’s follow-up report assesses formal changes to Andorra’s legislative, regulatory, and institutional framework, it does not evaluate the effectiveness of these reforms in practice. Andorra is expected to provide a further update on its progress within one year.

Full Report Available

The full report is available at [link].