Andorra Adapts to EU Financial Regulations with New Law

Andorra has taken a significant step towards aligning its financial regulations with those of the European Union by passing a new law aimed at incorporating the provisions of the Markets in Financial Instruments Directive II (MiFID II) into its legal framework.

Regulating Entities and Operations

The new law will regulate the organisational aspects and operations of entities within Andorra’s financial system, including:

• Banking institutions
• Investment companies
• Asset management firms
• Payment entities
• Other relevant entities

These entities will be required to adhere to minimum standards and procedures to ensure transparency and fairness in their operations. The new law aims to safeguard investor protection and prevent market manipulation.

Strengthening Anti-Money Laundering and Combating the Financing of Terrorism Regulations

In addition, Andorra has taken steps to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations:

• A new law has been passed to implement the Fourth Money Laundering Directive provisions.
• The country has also partially transposed the Fifth Anti-Money Laundering Directive into its national law.

These measures will further enhance Andorra’s efforts to combat money laundering and terrorist financing, ensuring a safer financial environment for investors and the general public.

Enhancing Stability and Integrity

The new laws and regulations are expected to have a positive impact on the stability and integrity of Andorra’s financial system:

• Promoting transparency
• Increasing investor confidence
• Safeguarding investor protection
• Preventing market manipulation

By adapting to EU financial regulations, Andorra demonstrates its commitment to maintaining a robust and reliable financial system that meets international standards. The country’s efforts will help to foster economic growth and stability while ensuring the safety of investors and the general public.