Andorra’s Banking Sector Undergoes Radical Transformation

From Tax Haven to Transparent Financial System

Andorra’s banking sector has undergone significant changes in recent years, transforming it from a hub for tax avoidance to a compliant and transparent financial system. As a major contributor to the country’s economy, accounting for one-fifth of its GDP, Andorra’s banking industry is no longer shrouded in secrecy.

A History of Change

• In 2015, Andorra was listed as a non-cooperative government by the Organisation for Economic Co-operation and Development (OECD) due to concerns over tax evasion.
• Since then, the country has made significant strides in reforming its tax system.
• Banking secrecy is no longer a selling point in the country, with banks now complying with international regulations on account reporting and customer due diligence.

The Turning Point: Banca Privada d’Andorra (BPA)

The turning point came in 2015 when Banca Privada d’Andorra (BPA), one of the country’s largest banks, was accused by the US Treasury Department of facilitating money laundering for organized crime. The bank’s CEO was subsequently arrested, and Andorran regulators took control of operations.

Reforms and Regulations

In the years since, Andorra has implemented a series of reforms aimed at enhancing transparency and combating financial crime. Some of these reforms include:

• Stricter reporting regulations
• Know-your-customer rules
• Compliance with international standards on account reporting and customer due diligence

Setting Up a Bank Account in Andorra

For individuals considering moving to Andorra, setting up a bank account is relatively straightforward. With our comprehensive guide to Andorra’s banking system, readers can navigate the process with ease and confidence.

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