Bank regulations
The regulatory framework of reference
Bank regulations
Monetary Agreement
As of April 1, 2012, the entry into force of the Monetary Agreement, the Andorran legal order has been modified to adapt to legal acts and the European Union regulations set out in the annex Of the Agreement.
Solvency (CRD IV and CRR)
The aim of Law 35/2018 of 20 December on the solvency, liquidation and prudential supervision of credit institutions and investment firms is to increase the resilience of Andorra’s banking and financial sector.
Law 17/2019 amending Law 8/2013 on organisational requirements and operating conditions of financial system operating entities, investor protection, market abuse and financial collateral arrangements.
The financial sector is one of the main pillars of the Andorran economy and is deeply interconnected with the international financial sector through its presence in other markets outside the Principality and also outside the European Union. It is therefore important that the Andorran legal framework complies with the highest international standards of financial regulation.
Basic principles of the MiFID directive
Fundamental concepts of the EU directive on financial instruments markets.
Payment services
Under the Monetary Agreement, Andorra undertook to implement Directive 2007/64/EC of the European Parliament and of the Council on means of payment in the internal market.
SEPA payment system
A common zone for citizens, businesses and other economic agents to make and receive payments in euros.
What is IFRS?
A decree that approves the international accounting framework for entities operating in the Andorran financial system.
Insurance
The new law modernises the regulatory and supervisory regime for the insurance and reinsurance sector and brings it into line with international standards.
Creation of international reserves and access by the financial system to emergency liquidity assistance
On 24 November 2022, the General Council approved Law 36/2022 on the creation of international reserves and access by the financial system to emergency liquidity assistance.
Digital assets and blockchain
This law offers a balance between innovation, the market, society’s preferences, technological development and the current legal framework.
Deposit guarantee and investor compensation schemes
Following what is set at European level, the guaranteed deposit amount is limited to €100,000.
Banking Recovery and Resolution (BRRD1)
This parameter is an additional and supplemental layer to the capital, liquidity and leverage requirements.
Association Agreement
Negotiations on the Association Agreement between the EU and Andorra were concluded on 12 December 2023.