Financial Crime World

Andorra Makes Progress in Anti-Money Laundering and Counter-Terrorist Financing Measures

Andorra, a small European principality, has made significant progress in addressing technical compliance deficiencies identified by MONEYVAL, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and Financing of Terrorism.

Progress Made

According to Andorra’s 3rd Enhanced Follow-up Report, the country has implemented new measures to address some of the concerns raised in its previous assessment. However, there are still areas where further improvement is needed.

Risk Assessment

Andorra has conducted a specific risk assessment for Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs), which was part of its National Risk Assessment 2020. This assessment identified deficiencies in the country’s anti-money laundering and counter-terrorist financing measures, particularly with regards to VASPs.

Remaining Deficiencies

Despite this progress, Andorra has yet to adopt a definition for VASPs, which are outside the scope of the country’s Anti-Money Laundering and Counter-Terrorist Financing Act. As a result, criteria 15.3(b) to 15.10 are not met.

  • Relevant legislative acts have been enacted, but have yet to be implemented.
  • Bills regulating VA and VASP activities and amending Law 14/2017 are still pending parliamentary approval.

Impact on Technical Compliance

Andorra’s progress has resulted in a re-rating of its technical compliance with the FATF Recommendations from “C” to “PC”. The country will continue to report back to MONEYVAL on its progress and is expected to do so again in one year’s time.

MONEYVAL Encouragement

MONEYVAL encourages Andorra to continue its efforts to address remaining deficiencies, particularly in relation to VASPs. The Committee has placed Andorra under enhanced follow-up, which means that it will remain subject to close monitoring and review by MONEYVAL until further progress is made.

Conclusion

Andorra’s progress in addressing technical compliance deficiencies is a positive step forward. However, there are still areas where improvement is needed, particularly with regards to VASPs. MONEYVAL will continue to monitor Andorra’s progress and encourage the country to make further improvements to its anti-money laundering and counter-terrorist financing measures.