Andorra Ranks 7th Lowest Risk for Money Laundering in Basel AML Index 2025
Andorra scores 3.48/10, placing 171st out of 177 jurisdictions in the low-risk category, praised for robust frameworks and reforms aligning with.
Key Points
- Andorra 7th worldwide (171/177 jurisdictions) with 3.48/10 score, behind Estonia, Denmark, San Marino.
- Slight improvement from prior year; robust legal framework, transparency, and Moneyval-aligned reforms praised.
- Index uses 17 indicators from IMF, FATF, Transparency International on AML, corruption, transparency risks.
- Global average 5.28/10; Andorra model for small jurisdictions amid virtual asset threats.
Andorra ranks seventh worldwide among countries with the lowest risk of money laundering, according to the Basel AML Index 2025 published by the Basel Institute on Governance.
The Principality placed 171st out of 177 jurisdictions analysed, earning a score of 3.48 out of 10—where zero indicates minimal risk and 10 the highest. This positions Andorra in the low-risk category, just behind Estonia, Denmark and San Marino, and tied with Sweden. Finland leads globally with 3.03, followed by Iceland.
The annual index, produced since 2012, serves as a benchmark for governments, international bodies, banks and media to assess vulnerabilities to money laundering and related financial crimes. It draws on 17 indicators across five areas: the quality of anti-money laundering and counter-terrorism financing frameworks; corruption and fraud risks; financial transparency; public accountability; and political and legal risks. Data comes from sources including the International Monetary Fund, Financial Action Task Force (FATF), Transparency International, the World Economic Forum, Freedom House and Reporters Without Borders.
Andorra's score shows a slight improvement from the previous year, reflecting positive trends in financial risk management. The report praises the country's robust legal framework, institutional transparency and ability to prevent cross-border financial offences, crediting recent reforms to align with Council of Europe and Moneyval standards. These include enhanced traceability, supervision and international cooperation.
Globally, the outlook remains concerning, with the average score dipping only marginally from 5.30 to 5.28. Experts highlight rising threats from virtual assets and sophisticated evasion tactics, but cite Andorra as a model for small jurisdictions strengthening compliance.
This strong ranking bolsters the reputation of Andorra's financial sector on the international stage.
Original Sources
This article was aggregated from the following Catalan-language sources: