Andorra’s AML/CFT Efforts: Progress Made, but Deficiencies Remain

The Council of Europe’s MONEYVAL committee has released its third Enhanced Follow-up Report on Andorra’s progress in addressing anti-money laundering (AML) and counter-terrorism financing (CFT) deficiencies.

Progress Made, Challenges Persist

According to the report, Andorra has made sufficient progress in addressing some of the technical compliance deficiencies identified in previous assessments. However, the country still faces challenges in implementing measures to combat money laundering and terrorist financing.

AML/CFT Framework and Deficiencies

The report highlights that Andorra’s AML/CFT framework is largely compliant with international standards, but certain deficiencies remain. Specifically:

• The country has not yet implemented new laws and regulations related to virtual assets and virtual asset service providers (VASPs), which are outside the scope of its AML/CFT Act.
• Andorra conducted a specific risk assessment for VASPs as part of its National Risk Assessment 2020, but the lack of a definition for VASPs means that criteria 15.3(b) to 15.10 are not met.

Recommendations and Progress

Andorra is encouraged to continue its efforts to address the remaining deficiencies and implement measures to meet the requirements of FATF Recommendations. The country will remain in enhanced follow-up and is expected to report back on its progress in one year’s time.

Technical Compliance Rating

• Recommendation 15: Partially Compliant (PC)
• All other recommendations: Compliant (C)

Conclusion and Future Work

The report concludes that Andorra will continue to work towards strengthening its AML/CFT framework and improving its technical compliance with international standards.

Source: MONEYVAL, “Andorra - 3rd Enhanced Follow-up Report” (November 2021)