Financial Crime World

Andorra Rated as Partially Compliant in Fighting Money Laundering and Terrorist Financing

Andorra’s efforts to combat money laundering and terrorist financing have been evaluated by the Financial Action Task Force (FATF), with the country receiving a rating of partially compliant (PC) in implementing the technical requirements of the FATF Recommendations.

Progress Made, Areas for Improvement Identified

The recent mutual evaluation report highlights Andorra’s progress in several areas, including:

  • National cooperation and coordination
  • Confiscation and provisional measures
  • Transparency and beneficial ownership of legal arrangements

However, the country still needs to improve its implementation of certain requirements, such as: + Assessing risk and applying a risk-based approach + Regulating and supervising financial institutions

Compliance and Non-Compliance Areas Identified

Andorra was found to be compliant in several areas, including:

  • Money laundering offence
  • Targeted financial sanctions related to terrorism and terrorist financing
  • Mutual legal assistance

However, the country was deemed non-compliant (NC) in certain aspects, such as: + Regulation of correspondent banking + Reporting of suspicious transactions

Recommendations for Improvement

The report provides several recommendations for Andorra to improve its anti-money laundering and counter-terrorist financing regime, including:

  • Strengthening its risk assessment and supervision framework
  • Improving customer due diligence
  • Enhancing international cooperation

Commitment to Implementation

Andorra’s partial compliance rating reflects the country’s efforts to implement the FATF Recommendations, but also highlights areas where it needs to improve. The government has committed to implementing the recommendations and improving its anti-money laundering and counter-terrorist financing regime.

By addressing these areas of improvement, Andorra can further strengthen its fight against money laundering and terrorist financing, ensuring a safer financial environment for its citizens and businesses.