Andorra: A Global Leader in Financial Transparency

The Principality is recognised as the fifth most secure jurisdiction worldwide in terms of money laundering risk

Andorra has been acknowledged as one of the world’s safest jurisdictions regarding money laundering, securing fifth place in the 2024 Global Index published by the Basel Institute on Governance. This organisation specialises in combating corruption and money laundering worldwide. With a score of 3.29, the Principality is surpassed only by four European jurisdictions: San Marino (2.96), Iceland (3.00), Finland (3.07), and Estonia (3.16).

This recognition comes after years of profound transformation in Andorra’s financial system, which has transitioned from a history of opacity to a leading position in transparency and international best practices.

What Does This Recognition Mean?

The Basel Institute’s ranking evaluates the risk of money laundering in each country based on key indicators such as financial transparency, regulatory frameworks and international cooperation. This identified risk refers to the likelihood of a financial system being used to launder funds derived from illegal activities.

Andorra’s distinguished position reflects the impact of ambitious and far-reaching reforms:

Alignment with international standards:

Andorra has adopted the guidelines set forth by the Financial Action Task Force (FATF).

Enhanced banking transparency:

The former banking secrecy laws have been replaced by mechanisms such as the automatic exchange of tax information.

Rigorous controls:

The Financial Intelligence Unit of Andorra (UIFAND) ensures constant supervision and preventive measures.

Strengthening Andorra’s International Reputation

Being recognised as one of the most secure jurisdictions for financial integrity provides tangible benefits for the Principality:

Strengthened global reputation:

Andorra solidifies its position as a trustworthy destination for investors and multinational enterprises.

Attraction of sustainable investments:

A low-risk environment fosters confidence and promotes economic growth.

Integration into international partnerships:

This recognition strengthens Andorra’s ability to collaborate with the European Union and other key economic stakeholders.

A Commitment to Good Governance

The recognition by the Basel Institute is no coincidence. It reflects Andorra’s commitment to good governance principles and a transparent, sustainable economy. In a world where combating money laundering remains a global priority, the Principality of Andorra stands out as an exemplary model of adaptability and leadership in meeting modern regulatory demands.

If you are interested in investing in Andorra or relocating to the Principality, contact us and we will guide you through the entire process.