Banks in Andorra
The Andorran financial system is one of the main pillars of the Andorran economy. According to the Andorran Bank Association (ABA), this sector, together with the insurance sector, represent approximately 20% of the gross domestic product.
The banking sector has more than 85 years of experience and is made up of five strong banking groups. This is the list of the banks in Andorra: Andbank, Banc Sabadell d´Andorra, Credit Andorrà, Vallbanc and Mora Banc.
In recent years, the Andorran financial system has faced numerous legislative changes, such as the implementation of regulations on issues of fiscal transparency, measures for international cooperation to fight crime and focused on anti-money laundering and fighting against financing of terrorism. There has also been an evident evolution in banking regulation.
Hence, opening a bank account is much more complex than in other countries. “Know your clients” (KYC) are increasingly demanding and extensive. Therefore, it is not surprising that, when opening a bank account in Andorra, entities increasingly require more personal information and want to know more details about the operation that the client will carry out with the bank account.
Additionally, it is important to bear in mind that Andorra, being part of the OECD, is subject to the automatic exchange of information or the Common Reporting Standard (CRS) that establishes the way in which the competent authorities of the countries adhering to this standard exchange information regarding financial accounts. The objective of the CRS is to fight against tax evasion.
Therefore, Andorran banks strictly comply with all the measures required by international regulations to avoid tax fraud and money laundering.
Finally, one of the latest developments in the sector has been the accession to SEPA of the five Andorran banking entities, becoming part of the Single Euro Payments Area (SEPA).
By joining SEPA, the banks of the Andorran financial market became part of the geographical area in which it is possible to make and receive payments in euros with the same conditions and the same rights and obligations, regardless of where they are located.
Consequently, thanks to SEPA the commissions are lower and it is not necessary to use SWIFT to make transfers between the members of the Single Euro Payments Area.
Our firm has a team specialized in banking compliance that works with all of the banks in Andorra and that can help you open a bank account in Andorra, as well as in your communication with the bank.
Data extracted from the Andorran banking annual report.
Augé Legal & Fiscal