Andorra Takes Significant Steps to Combat Money Laundering and Terrorist Financing in Non-Profit Sector

According to the latest report by MONEYVAL, Andorra has made substantial progress in combating money laundering and terrorist financing, particularly in the non-profit sector.

Progress in Combating Money Laundering and Terrorist Financing

The report assesses Andorra’s measures to address shortcomings identified in its 2017 evaluation report under the enhanced follow-up procedure. MONEYVAL evaluated Andorra’s risk assessment of the non-profit sector, supervision and regulation, and examined legislative, regulatory, and institutional measures implemented by the country in these areas.

Upgrades in Compliance Rating

As a result of the evaluation, MONEYVAL has upgraded Andorra’s compliance rating with FATF recommendations concerning non-profit organisations from “partially compliant” to “largely compliant”.

Implementation of Revised Recommendation on Virtual Assets

The report also assesses Andorra’s implementation of new international requirements for virtual assets established in a revised FATF recommendation, covering prominent virtual currencies and providers of these assets. However, Andorra’s rating on the implementation of this revised recommendation has been downgraded from “compliant” to “partially compliant”.

Compliance Status

As a result, Andorra has achieved full compliance with nine of the 40 FATF recommendations constituting the international AML/CFT standard. The country retains minor deficiencies in the implementation of 28 recommendations where it is found “largely compliant”. Three recommendations remain “partially compliant”, while there are no “non-compliant” ratings.

Way Forward

The report notes that Andorra has achieved significant progress, but due to procedural limitations, MONEYVAL does not assess the effectiveness of these reforms in practice. The country is expected to report back on further progress to strengthen its implementation of AML/CFT measures within a year.