Andorra is strengthening its position as one of the most solid jurisdictions in terms of money laundering prevention at an international level. According to the Basel AML Index 2025, the Principality ranks among the ten countries with the lowest risk of money laundering and terrorist financing worldwide.
The index, published annually by the Basel Institute on Governance, analyzes nearly 180 jurisdictions and is one of the most widely used global references for assessing the quality of financial crime prevention systems.
In the 2025 edition, Andorra ranks seventh worldwide, with a score of 3.48 out of 10, where 0 represents the lowest possible level of risk. This places the country clearly within the group of low-risk jurisdictions, ahead of many larger economies.
A key international indicator to measure financial risk
The Basel AML Index is a leading international ranking that assesses the structural risk of money laundering and terrorist financing on a global scale. The index does not measure the number of detected crimes, but rather countries’ capacity to prevent them, based on the quality of their legal, institutional and supervisory systems.
To carry out this assessment, the report combines data from 17 indicators provided by international organizations such as the International Monetary Fund, the FATF and Transparency International. The main areas analyzed include:
This approach provides a comparative and objective view of the level of risk in each jurisdiction and has become a common tool for institutions, companies and investors when evaluating financial environments.
A track record of continuous improvement
Beyond the strong ranking achieved, the 2025 result also reflects an improvement compared to the previous year, demonstrating a positive and sustained evolution of Andorra’s anti-money laundering system.
This trend reinforces the perception of Andorra as a stable, predictable environment aligned with international standards, which is particularly relevant for both local economic operators and international companies and investors.
Factors behind this ranking
Andorra’s strong position in the international ranking is the result of continuous work in several key areas of the anti-money laundering prevention system.
On the one hand, the country has promoted legislative reforms and constant adaptation of its regulatory framework to ensure alignment with international standards, especially the recommendations of the FATF and the Council of Europe.
On the other hand, international cooperation stands out, with information-sharing mechanisms and collaboration with other jurisdictions that strengthen the ability to detect and prevent cross-border risks.
Finally, it is important to highlight the role of the Andorran Financial Intelligence Unit (UIFAND), which is responsible for coordinating, supervising and analyzing control measures against money laundering and terrorist financing at the national level.
This comprehensive approach not only improves the regulatory framework, but also helps consolidate a culture of transparency, responsibility and regulatory compliance within the Andorran financial and business system.
Impact and reputation
Andorra’s positioning as a low-risk country for money laundering has a direct impact on its international reputation. For companies, investors and professionals, these rankings are a relevant indicator of legal certainty and the reliability of the financial environment.
This recognition helps strengthen client confidence, both domestic and international, and improves Andorra’s perception among institutions and international markets that are increasingly demanding in terms of regulatory compliance.
Beyond the ranking
Andorra has made significant progress in preventing money laundering, consolidating its position as one of the lowest-risk jurisdictions worldwide. This result is the outcome of sustained efforts to improve regulations, strengthen international cooperation and implement efficient control and supervision systems.
In a global context marked by increasingly strict regulation, understanding and communicating these advances is key to strengthening the competitiveness and transparency of the Andorran business environment.
At IS21, we support companies and investors to ensure their projects comply with anti-money laundering regulations and develop with security, rigor and confidence, taking advantage of the strength of Andorra’s regulatory framework.