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Andorra’s AML/CFT Efforts Receive Mixed Review in Latest MONEYVAL Report
Andorra, a small European principality, has made significant progress in addressing technical compliance deficiencies related to anti-money laundering (AML) and counter-terrorist financing (CFT) measures, according to the latest report from MONEYVAL.
Progress and Challenges
Although Andorra has made progress in addressing some technical compliance deficiencies identified in its Mutual Evaluation Report (MER) and applicable subsequent Follow-up Reports, it still needs to improve its AML/CFT framework. Specifically, the country’s failure to adopt a definition for Virtual Asset Service Providers (VASPs) and Virtual Assets (VAs) has hindered its progress in meeting FATF Recommendations 15.3(b) to 15.10.
Key Findings
- Andorra has made sufficient progress in addressing some technical compliance deficiencies related to Recommendation 8.
- The country’s revised R.15 should be rated as Partially Compliant (PC) due to the lack of a definition for VASPs and VAs.
- Andorra will continue to report back to MONEYVAL on its progress in strengthening its implementation of AML/CFT measures.
Recommendations
- Andorra is encouraged to continue its efforts to address the remaining deficiencies, including the adoption of a definition for VASPs and VAs.
- The country should prioritize implementing new legislative acts related to VASPs and VAs to meet the requirements of FATF Recommendations 15.3(b) to 15.10.
Technical Compliance Rating
Andorra’s technical compliance with the FATF Recommendations has been re-rated as follows:
| Recommendation | Technical Compliance Rating |
|---|---|
| R1-R4, R6-R11 | Compliant (C) |
| R5 | Largely Compliant (LC) |
| R12-R20 | Partially Compliant (PC) |
| R21-R40 | Compliant (C) |
Conclusion
Andorra has made significant progress in strengthening its AML/CFT framework, but there is still work to be done. The country should prioritize implementing new legislative acts related to VASPs and VAs to meet the requirements of FATF Recommendations 15.3(b) to 15.10. MONEYVAL will continue to monitor Andorra’s progress and expects the country to report back on its implementation of AML/CFT measures in one year’s time.