Andorra’s Progress on Anti-Money Laundering and Counter-Terrorist Financing Measures

In its latest report, MONEYVAL has reviewed Andorra’s progress in addressing technical compliance deficiencies in its anti-money laundering (AML) and counter-terrorist financing (CFT) measures.

Challenges Remain

Despite some improvements, Andorra still faces challenges in implementing AML/CFT regulations. Specifically:

• The country has not yet adopted legislation to regulate virtual assets (VAs) and virtual asset service providers (VASPs), despite conducting a risk assessment on the sector.
  • Lack of definition for VASPs is a major concern
  • Failure to conduct concrete information gathering on key threats and vulnerabilities associated with VASP products and operations

Progress Made

However, Andorra has made progress in other areas:

• Risk assessment on the provision of services related to VAs
• International cooperation with other countries to combat money laundering and terrorist financing

Recommendations and Next Steps

MONEYVAL has re-rated Andorra’s technical compliance with the Financial Action Task Force (FATF) Recommendations as partially compliant. The country is encouraged to continue addressing its remaining deficiencies, including:

• Implementation of legislation to regulate VASPs and VAs

Andorra will remain in enhanced follow-up and will report back to MONEYVAL on its progress in one year’s time.