Financial Crime World

Andorra Makes Progress in Fight Against Money Laundering and Terrorist Financing

Andorra’s efforts to strengthen its anti-money laundering (AML) and counter-terrorist financing (CFT) regulations have yielded significant results, as demonstrated by the recent upgrade of its rating by the MONEYVAL committee.

Improved Compliance with AML/CFT Regulations

The European Organization for Economic Co-operation and Development (OECD) body has upgraded Andorra’s rating on three key recommendations:

  • Recommendation 25: Transparency and Beneficial Ownership of Legal Arrangements: Andorra is now rated “largely compliant” in this area, indicating significant improvements since the adoption of its mutual evaluation report in 2017.
  • Recommendation 26: Regulation and Supervision of Financial Institutions: Andorra has made notable progress in strengthening its regulatory framework for financial institutions, earning a rating of “largely compliant”.
  • Recommendation 28: Regulation and Supervision of DNFBPs (Designated Non-Financial Businesses and Professions): Andorra’s efforts to regulate and supervise DNFBPs have also yielded positive results, with the country now rated “largely compliant”.

Progress in Implementing New Requirements

Andorra has also reported back on its progress in implementing new requirements related to Recommendation 2: National Cooperation and Coordination. While the country remains “compliant” on this recommendation, MONEYVAL will continue to monitor Andorra’s efforts to strengthen its national cooperation and coordination mechanisms.

Current Rating and Challenges

Andorra is now rated as “compliant” on ten FATF recommendations and “largely compliant” on twenty-seven. However, the country still faces challenges in implementing AML/CFT measures, with three recommendations remaining “partially compliant”.

Enhanced Follow-Up Process

MONEYVAL has decided to maintain Andorra under the enhanced follow-up process, requiring the country to continue reporting back on its progress in strengthening its implementation of AML/CFT measures. This ensures that Andorra remains committed to improving its AML/CFT framework and addressing any remaining deficiencies.

Overall, Andorra’s efforts to combat money laundering and terrorist financing have made significant progress, demonstrating the country’s commitment to international standards and best practices.