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

Andorra has made significant progress in addressing some of the technical compliance deficiencies identified in its Money Laundering and Terrorist Financing (ML/TF) measures, according to a report by MONEYVAL, the Council of Europe’s anti-money laundering body.

Report Highlights

The November 2021 report assesses Andorra’s implementation of anti-money laundering and counter-terrorist financing (AML/CFT) measures and notes that while progress has been made, some deficiencies remain. Specifically:

• Lack of Legislative Acts: Andorra has not yet adopted legislative acts to address the vulnerabilities in its AML/CFT regime, particularly with regards to Virtual Asset Service Providers (VASPs).
• Definition of VASPs: The AML/CFT Act does not define VASPs, which are outside the scope of the law. As a result, criteria 15.3(b) to 15.10 are not met.

FATF Recommendations

Despite these shortcomings, Andorra’s overall technical compliance with the FATF Recommendations has been re-rated as follows:

• Recommendation 8: Compliant (C)
• Recommendation 15: Partially Compliant (PC)

Andorra is encouraged to continue its efforts to address the remaining deficiencies and implement new measures to meet the requirements of the FATF Recommendations.

Next Steps

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