Financial Crime World

Andorra Takes Steps to Enhance Fight Against Money Laundering and Terrorist Financing

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Strasbourg, December 7, 2021 - MONEYVAL has published a follow-up report assessing Andorra’s progress in combating money laundering and terrorist financing, particularly in the non-profit organization sector.

Significant Progress Made in Combating Money Laundering and Terrorist Financing

Andorra has made significant strides in its efforts to combat money laundering and terrorist financing, with a focus on the risk assessment, supervision, and regulation of non-profit organizations. As a result, MONEYVAL has upgraded Andorra’s compliance rating with the Financial Action Task Force (FATF) recommendation concerning non-profit organizations from “partially compliant” to “largely compliant”.

Evaluation Results

The report evaluates Andorra’s implementation of anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, focusing on:

  • Risk assessment: Andorra has made significant progress in identifying and assessing its risk of money laundering and terrorist financing.
  • Supervision: The country has strengthened its supervision of financial institutions, including non-profit organizations.
  • Regulation: Andorra has implemented new regulations to prevent the misuse of virtual assets.

Compliance Rating

Andorra has achieved full compliance with nine out of the 40 FATF recommendations that constitute the international AML/CFT standard. The country retains minor deficiencies in implementing 28 recommendations, where it has been found “largely compliant”. Three recommendations remain “partially compliant”, and Andorra has no non-compliant ratings.

Way Forward

The follow-up report does not assess the effectiveness of these reforms in practice, as MONEYVAL’s procedural limitations only allow for an examination of formal changes to the legislative, regulatory, and institutional framework. Andorra is expected to report back to MONEYVAL on further progress in strengthening its implementation of AML/CFT measures within the next year.

Full Report Available Online

The full report can be accessed online at [link to report].

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