Moneyval Urges Andorra to Bolster TFS and Transfer Transparency

**Moneyval calls on Andorra to strengthen targeted financial sanctions and transfer transparency**

The Council of Europe's Moneyval committee has recommended that Andorra advance its regulation of targeted financial sanctions (TFS) and bolster transparency in financial transfers to address vulnerabilities in preventing money laundering and terrorist financing.

In a report published this week, the body—which oversees compliance with Financial Action Task Force (FATF) standards across member states—emphasized the need for a clear and effective legal framework to apply TFS without delay. These sanctions include asset freezes and prohibitions aimed at stopping funds or economic resources from reaching designated persons or entities, directly or indirectly.

Moneyval observed that training programs in Andorra on TFS and the FATF's Travel Rule provide only limited or occasional coverage within broader anti-money laundering and counter-terrorism financing efforts. While many jurisdictions touch on these topics, only a minority address them systematically and in depth, including Bulgaria, Gibraltar, and Malta. The report groups Andorra with places like Montenegro and Slovakia, where such training remains more superficial.

The Travel Rule, under FATF Recommendation 16, mandates the collection, transmission, and availability of originator and beneficiary details for virtual asset transfers to ensure traceability. Globally, implementation lags, with only 46% of jurisdictions fully in place.

These gaps in regulation, oversight, training, and Travel Rule deployment heighten risks to the international framework against money laundering and terrorist financing, Moneyval warned. It pressed countries like Andorra to enhance their legal structures, supervision, and capacity-building for involved parties to meet global benchmarks.