Andorra Improves Money Laundering Detection Methods in Non-Profit Sector

Strengthening Anti-Money Laundering and Counter-Terrorism Financing Measures

Andorra has taken significant steps to enhance its anti-money laundering and counter-terrorism financing (AML/CFT) measures in the non-profit organisation sector, according to a follow-up report published by the Council of Europe’s MONEYVAL committee.

Key Improvements

• Risk Assessment: Andorra has improved its risk assessment of the non-profit sector, ensuring that these organisations are subject to enhanced supervision and regulation.
• Supervision and Regulation: The government has strengthened its oversight of non-profit organisations, implementing measures to prevent money laundering and terrorist financing.

Compliance Rating Upgrade

As a result of these improvements, MONEYVAL has upgraded Andorra’s compliance rating with the Financial Action Task Force (FATF) recommendations concerning non-profit organisations from “partially compliant” to “largely compliant”.

Ongoing Challenges

• Virtual Assets: Andorra’s implementation of new international requirements for virtual assets has been downgraded from “compliant” to “partially compliant”, as it needs to ensure the effective regulation of prominent virtual currencies and providers.
• Remaining Deficiencies: Despite progress, Andorra still retains minor deficiencies in the implementation of 28 FATF recommendations and three remain “partially compliant”.

Next Steps

Andorra is expected to report back to MONEYVAL on further progress in strengthening its AML/CFT measures within the next year.