Andorra Makes Significant Strides in Combating Money Laundering and Terrorist Financing

Strasbourg, December 7, 2021

According to a recent report by MONEYVAL, Andorra has made substantial progress in combating money laundering and terrorist financing, particularly in its non-profit organization sector. The country’s improved measures have earned it an upgrade from “partially compliant” to “largely compliant” on the Financial Action Task Force (FATF) recommendation concerning non-profit organizations.

Improved Measures Earn Andorra Upgrade

The follow-up report assesses Andorra’s risk assessment of its non-profit organization sector, as well as its supervision and regulation. The report also examines a range of legislative, regulatory, and institutional measures implemented by the country in these areas.

Key Findings

• MONEYVAL has upgraded Andorra’s compliance rating with the FATF recommendation concerning non-profit organizations from “partially compliant” to “largely compliant”.
• The report downgrades Andorra’s rating on the implementation of new international requirements for virtual assets established in a revised FATF recommendation, covering prominent virtual currencies and providers.

Full Compliance Achieved

As a result, Andorra has achieved full compliance with nine of the forty FATF recommendations constituting the international Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) standard. The country retains minor deficiencies in the implementation of twenty-eight recommendations where it has been found “largely compliant”. Three recommendations remain “partially compliant”, while Andorra has no “non-compliant” ratings.

Next Steps

The report notes that while MONEYVAL’s procedural limitations prevent it from assessing the effective implementation of reforms, Andorra is expected to report back on further progress in strengthening its AML/CFT measures within a year.