Title: Andorra’s Leap Forward in the Fight Against Financial Crimes: A MONEYVAL Update
Andorra, a small European country situated in the Pyrenees Mountains, has made notable progress in strengthening its measures against financial crimes. According to the latest report ([Feb 2023](https://moneyval.coe.int/news-and-events/the-fifth-round-of- mutual-evaluation-reports-are-published.html)) from the Council of Europe’s Moneyval Committee, Andorra has addressed several significant compliance deficiencies related to its Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) framework.
Andorra’s Improvements
Since the initial evaluation in 2015, the country has taken substantial steps to improve its legal and regulatory foundations. The following areas in which Andorra has made considerable progress:
- Customer due diligence: Andorra’s financial institutions have increased their focus on customer identification and ongoing monitoring.
- Transaction monitoring: Regular transaction monitoring is now a standard practice to prevent and detect suspicious transactions.
- Risk assessment: Institutions are now required to perform a comprehensive risk assessment to identify, assess, and manage money laundering and terrorism financing risks.
FATF’s Commendation
The Financial Action Task Force (FATF), an international organization focused on combating money laundering and financing of terrorism, has commended Andorra for its progress ([Press Release](https://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/ docs/Andorra-Factsheet-February-2023.pdf)). The FATF highlighted the importance of maintaining momentum towards full compliance with the FATF Recommendations.
Continued Support and Guidance
Andorra’s progress has earned the continued support and guidance from organizations like MONEYVAL and the FATF. These organizations play a crucial role in providing technical assistance, expertise, and resources to help Andorra build a more robust AML/CFT regime.
With these updates, Andorra sends a strong message to the international community that it is committed to enhancing its financial system and contributing to the global efforts against financial crimes. This development instills confidence in the international investor community and underscores the significance of collective action against financial crimes.