Andorra Ranks 7th Lowest Globally for Money Laundering Risk in 2025 Basel Report

Andorra ranks seventh worldwide for the lowest risk of money laundering, according to the Basel Governance Institute's 2025 annual report, which assessed 177 jurisdictions. The principality received a score of 3.48 on a scale where 10 indicates the highest risk, placing it behind Sweden at the same score, Estonia (3.25), Denmark (3.18), San Marino (3.08), Iceland (3.04) and Finland (3.03). Slovenia (3.49), Norway (3.73) and New Zealand (3.76) round out the top 10.

Despite staying in the leading group, Andorra slipped two spots from fifth place in the previous year's report, which covered 164 jurisdictions. At the bottom of the ranking sit Congo (7.63), Haiti (8.12) and Myanmar (8.18).

Among neighbours and similar small states, France scored 3.99 in 18th place, while Spain fell one position to 34th with 4.24. Portugal improved markedly, rising 11 spots to 12th at 3.83. Luxembourg ranked 14th (3.97), Liechtenstein 25th (4.11), Montenegro 39th (4.33), Cyprus 61st (4.77) and Malta 83rd (5.15).

The Basel AML Index draws on 17 indicators across five key areas that heighten money laundering and terrorism financing risks: shortcomings in anti-money laundering frameworks, corruption and bribery levels, compliance with financial transparency standards, public transparency and accountability, and the state of political rights and rule of law.

The report notes a general stagnation in risk scores despite public and private sector efforts to adopt risk-based approaches. The global average improved only marginally from 5.30 to 5.28—"statistically insignificant"—offering reassurance that countermeasures are keeping pace with evolving threats like virtual assets and illicit AI use, though vigilance remains essential against sophisticated evasion tactics.

Of jurisdictions evaluated last year, 54% (88) improved, 43% (71) worsened and 3% (five) stayed flat. Europe saw its average risk score edge up from 4.09 to 4.11, still well below the global mean, with stable anti-money laundering frameworks but concerns over weakening financial transparency alongside rises in corruption and fraud. Public sector transparency improved, while legal and political risks held steady.

Separately, Andorra's Financial Intelligence Unit (Uifand) updated its high-risk jurisdictions list in line with the latest Financial Action Task Force review. Monaco remains subject to enhanced due diligence for all business or financial dealings and related entities. Four countries—Burkina Faso, Mozambique, Nigeria and South Africa—were removed. The revised list now includes Algeria, Angola, Bolivia, Bulgaria, Cameroon, Côte d'Ivoire, Haiti, Yemen, British Virgin Islands, Kenya, Lebanon, Monaco, Myanmar, Namibia, Nepal, Democratic People's Republic of Laos, Democratic Republic of the Congo, Syria, South Sudan, Venezuela and Vietnam.

Prohibitions on dealings with North Korea and Iran, due to very high risk, remain in place.