Financial Crime World

MONEYVAL 3rd Enhanced Follow-up Report on Andorra’s AML/CFT Progress

Introduction

This report is a 3rd Enhanced Follow-up Report (EFUR) by MONEYVAL, an anti-money laundering and counter-terrorist financing (AML/CFT) body of the Council of Europe, on Andorra’s progress in implementing AML/CFT measures.

Key Findings

  • Progress in Addressing Technical Compliance Deficiencies: Andorra has made sufficient progress in addressing some of the technical compliance deficiencies identified in its Mutual Evaluation Report (MER) and subsequent follow-up reports.
  • Revised Rating for Recommendation 15: Andorra’s technical compliance with FATF Recommendation 15, which relates to the risk management of new technologies and products, is revised from “compliant” (C) to “partially compliant” (PC).
    • Risk Management of New Technologies and Products: MONEYVAL highlights that Andorra needs to improve its measures for managing the risks associated with new technologies and products.
  • Deficiencies in Regulating Virtual Assets and Service Providers: Andorra has not yet implemented measures to regulate virtual assets (VAs) and virtual asset service providers (VASPs), which are outside the scope of the AML/CFT Act.
    • Virtual Asset Regulation: MONEYVAL emphasizes that Andorra needs to implement effective regulations for VAs and VASPs to prevent money laundering and terrorist financing.
  • Initiated Amendments to the AML/CFT Law: Andorra has initiated amendments to the AML/CFT Law aimed at regulating VAs and VASPs, but these amendments have not yet been adopted.
    • Need for Further Action: MONEYVAL encourages Andorra to finalize and adopt the amendments as soon as possible.
  • Encouragement to Continue Efforts: MONEYVAL encourages Andorra to continue its efforts to address the remaining deficiencies and implement effective measures to combat money laundering and terrorist financing.

Conclusion

The report concludes that Andorra has made progress in addressing some technical compliance deficiencies, but still needs to improve in certain areas, particularly with regards to regulating VAs and VASPs.