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Andorra: A Financial Hub with a Growing Banking System
In recent years, Andorra’s banking system has undergone significant changes, abandoning its reputation for secrecy and opacity. The country has implemented measures against money laundering and terrorist financing, earning it a stable rating from reputable agencies such as Fitch and Moody’s.
Part of the Single Euro Payments Area (SEPA)
The Principality of Andorra is now part of the Single Euro Payments Area (SEPA), allowing companies and organizations to make euro-based transactions throughout the European Union with the same ease as domestic transactions. The country aims to re-establish itself as a major financial center, attracting international capital.
Andorran Banking System
Andorra has a solid banking system, with five banks operating in the country. However, over the next few months, two of these banks will be absorbed by others, leaving only three major banks: Morabanc, Creand (formerly Crèdit Andorrà), and Andbank.
Choosing the Right Bank
Choosing the right bank depends on individual or business needs. For instance:
- Morabanc: offers country banking and international private banking services.
- Creand: has both commercial and private banking options.
- Andbank: specializes in international private banking.
Opening a Bank Account in Andorra
Andorran banks require specific documentation to open an account, including:
- Identity documents (passports or ID cards)
- Proof of address
- Evidence of solvency
The compliance process involves verifying the origin of funds and the nature of business activities. Andorran banks have a rigorous compliance procedure in place to ensure adherence to international regulations on preventing money laundering and financing terrorism.
Advantages of Opening an Account in Andorra
Having a bank account in Andorra provides several benefits, including:
- An alternative to the European banking system and country risk
- Deposit insurance up to €100,000
- Private banking managers with international experience at a lower cost than Swiss or Luxembourg competitors
- Possibility of opening an account for future residence or retirement in Andorra
- Access to international private banking funds and products
Private Banking in Andorra
Andorran private banking offers comprehensive wealth management services for high net worth individuals or family groups. To be accepted, clients typically need to invest at least €500,000 (although some banks may accept a minimum of €350,000). Private banking managers can help with investment, estate planning, and tax needs.
Products Offered by Andorran Private Banking
Andorran private banking offers products such as:
- Access to international investment funds, equities, and derivative or structured products
- Unit Linked or international life insurance for tax planning
- Non-resident alternative bank accounts to reduce country risk
- International omnibus accounts through multi-national banking providers
- SICAVs (ICOs) real estate investment trusts
Choosing the Right Bank
With different banks offering varying services and facilities, choosing the right one can be challenging. AndorraInc offers assistance in selecting the best option for individual or business needs.
Contact Information
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Please feel free to reach out to us without obligation to discuss your specific case and explore the options available in Andorra.