Financial Crime World

Andorra Makes Progress in Anti-Money Laundering and Terrorist Financing Efforts, According to MONEYVAL Report

MONEYVAL Praises Andorra’s Significant Progress

In a recent follow-up report, the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) has commended Andorra for its substantial progress in strengthening its framework to combat money laundering and terrorist financing. As a result, the country has had three Financial Action Task Force (FATF) recommendations downgraded from “partially compliant” to “largely compliant”.

History of Evaluation

Andorra was placed under an enhanced follow-up process after MONEYVAL’s mutual evaluation report in September 2017 assessed the effectiveness of its anti-money laundering and counter-terrorist financing measures, finding several technical compliance deficiencies. The country has since reported back to MONEYVAL on the progress it has made to address these issues.

Latest Follow-Up Report

The latest follow-up report examines Andorra’s progress in addressing the technical deficiencies identified in the mutual evaluation report. As a result, MONEYVAL has re-rated Andorra as “largely compliant” for recommendations:

  • 25: Transparency and beneficial ownership of legal arrangements
  • 26: Regulation and supervision of financial institutions
  • 28: Regulation and supervision of DNFBPs (Designated Non-Financial Businesses and Professions)

Overall Compliance Status

Andorra remains “compliant” on ten FATF recommendations and “largely compliant” on twenty-seven, while still being “partially compliant” on three. MONEYVAL has decided that Andorra will continue to be under the enhanced follow-up process and will require further reports on its progress in implementing anti-money laundering and counter-terrorist financing measures.

Key Efforts and Progress

The report highlights Andorra’s efforts to strengthen its framework, including:

  • Improvements in transparency and beneficial ownership: Andorra has made significant progress in improving the transparency and beneficial ownership of legal arrangements.
  • Regulation and supervision of financial institutions: The country has strengthened its regulation and supervision of financial institutions.
  • Regulation and supervision of DNFBPs: Andorra has improved its regulation and supervision of DNFBPs, including new requirements relating to national cooperation and coordination.

MONEYVAL has also praised the country for making significant progress in implementing new requirements relating to national cooperation and coordination.