Financial Crime World

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Andorra Improves Measures Against Money Laundering and Terrorist Financing

Strasbourg, 7 December 2021

Andorra has taken significant steps to combat money laundering and terrorist financing, demonstrating improvement in its compliance with international standards. This was found by a follow-up report published today by MONEYVAL.

Upgrades in Non-Profit Organisations Sector

MONEYVAL’s assessment focused on the non-profit organisations sector, where Andorra upgraded its compliance rating from “partially compliant” to “largely compliant” with FATF recommendations concerning non-profit organisations. This improvement reflects Andorra’s efforts to address shortcomings identified in a 2017 evaluation.

Rating Downgraded for Virtual Assets

However, Andorra’s rating for implementing new international requirements for virtual assets was downgraded from “compliant” to “partially compliant”. This means the country now achieves full compliance with nine out of forty FATF recommendations. It retains minor deficiencies in twenty-eight recommendations and has three areas where it remains “partially compliant”.

Procedural Limitations

MONEYVAL’s report does not assess the effectiveness of reforms in practice due to procedural limitations. Instead, it examines formal changes to Andorra’s legislative, regulatory, and institutional framework.

Next Steps for Andorra

The country is expected to report back on further progress within a year.

Positive Step Towards Strengthening AML/CFT Measures

Andorra’s improvement in combating money laundering and terrorist financing is a positive step towards strengthening its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) measures. This effort will help maintain international cooperation and ensure that Andorra remains committed to fighting illicit financial activities.

Key Statistics:

  • Upgraded compliance rating from “partially compliant” to “largely compliant” with FATF recommendations concerning non-profit organisations
  • Downgraded rating for implementing new international requirements for virtual assets from “compliant” to “partially compliant”
  • Achieves full compliance with nine out of forty FATF recommendations
  • Retains minor deficiencies in twenty-eight recommendations and has three areas where it remains “partially compliant”