Andorra: Improvements in Combating Money Laundering and Terrorist Financing in the Non-Profit Sector
MONEYVAL’s Follow-Up Report Reveals Progress, But Challenges Remain
Background
In its 2017 evaluation report, the European anti-money laundering and counter-terrorist financing (AML/CTF) watchdog, MONEYVAL, identified several shortcomings requiring immediate attention in Andorra’s non-profit organisations sector. The country was placed under enhanced follow-up procedure.
Progress in Combatting Money Laundering and Terrorist Financing
MONEYVAL’s latest follow-up report has acknowledged Andorra’s significant progress towards enhancing measures against money laundering and terrorist financing, primarily in the non-profit organisations sector. The report published on 7 December 2021, reveals:
- Upgraded compliance status: Andorra’s compliance rating for FATF recommendations concerning non-profit organisations has been upgraded from ‘partially compliant’ to ’largely compliant.’
- Assessment of risk and improved supervision: The report assesses Andorra’s risk assessment of the non-profit sector and examines new measures taken in the areas of supervision and regulation.
Challenges Remain
The follow-up report reveals some challenges Andorra faces in addressing AML/CTF issues:
- Virtual assets implementation: Andorra’s implementation of the revised FATF recommendation regarding virtual assets has been classified as ‘partially compliant.’
- Ongoing progress: Andorra is expected to submit a report to MONEYVAL within a year demonstrating continued progress.
Fulfillment of FATF Recommendations
To date, Andorra has achieved full compliance with nine of the forty FATF AML/CFT recommendations. However, twenty-eight recommendations have shown ’largely compliant’ status, three recommendations remain ‘partially compliant,’ and no ’non-compliant’ ratings were identified.
The Road to Enhanced AML/CTF Measures
MONEYVAL’s follow-up report outlines the legislative, supervisory, and institutional framework improvements addressing AML/CTF issues in Andorra. While it acknowledges Andorra’s achievements, it does not evaluate the practical implementation of these reforms. Instead, it expects future reports from the country within a year to demonstrate continued progress.
[Link to the report]
[As a note, the text provided only showed Strasbourg, France, as the location for the report, but the article implied that MONEYVAL’s headquarters in Strasbourg, France, were publishing the report. You can add “MONEYVAL’s Headquarters” or “MONEYVAL, Strasbourg, France” before the name in the headings and the article text to clarify this.]