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Andorra: international financial centre

Andorra: international financial centre

The Principality of Andorra is a modern and developed economy, with an income level per person which is above the average level among the OECD. The euro is legal tender in Andorra since 2002 and the official currency since 2011 owing to the Monetary Agreement signed with the European Union. Andorra, with a safe and stable situation in a calm environment, offers an ideal legal framework, with full guarantees and modern infrastructures that attract a great amount of investors.

The Andorran financial sector benefits from an excellent reputation owing to its soundness and rigour when applying international regulating standards. The Andorran National Institute of Finances (INAF) is the body in charge of regulating and supervising the banking sector, which also has a self-regulating body, the Andorran Banks Association (ABA), of which BPA is a founding member. The Andorran banking sector firmly faces the current financial stability challenges thanks to its constant adaptation to the requirements and good practices of international regulations.

Financial system

The Law regulating the financial system passed on 27 November 1993 governs the Andorran financial system, and the technical executive body of the Andorran financial authority which is responsible for its regulation and supervision is the Andorran National Institute of Finance.

http://www.inaf.ad/

Banca Privada d'Andorra forms part of the Association of Andorran Banks (Associació de Bancs Andorrans (ABA), created on 11 November 1960 for the self-regulation of the banking sector.

Legal framework

The Andorran legal framework is in line with the neighbouring countries and therefore covers all the aspects which are tackled in the financial legislation of the most advanced countries.

The evolution of the legal and regulating framework of the Andorran financial system to adapt to international standards has been constant over the last years. In this respect, the Monetary Agreement signed by Andorra and the European Union in 2011 entails the progressive homologation of the Andorran legal framework in the banking and financial fields with that of the European Union, mainly regarding solvency, means of payment and accountancy framework.

We want to highlight the fact that the information exchange between the financial system supervising bodies will be exclusively restricted for the purpose of the supervision of the financial system risks and the good functioning of capital markets.

The main provisions and regulations initiatives which regulate the Andorran legal framework may be summarized as follows:

Evolution of Andorran legislation: financial regulation