Financial Crime World

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Banking Regulation Landscape in Andorra

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Andorra has implemented various laws and regulations to regulate its financial system, ensuring stability, solvency, and protection of depositors. This article provides an overview of these regulations.

Deposit Guarantee Scheme

  • Law on the Deposit Guarantee Scheme: guarantees deposits up to €100,000 per depositor and €100,000 per investor for each entity.
  • Protects depositors’ interests by ensuring timely repayment in case of a bank’s insolvency.

Disciplinary Regime

  • Law regulating the disciplinary regime of the financial system: establishes a disciplinary regime applicable to entities in the Andorran financial system to guarantee its stability and solvency.
  • Ensures that financial institutions operate within regulatory guidelines, preventing potential risks to the financial system.

Capital Adequacy and Solvency

  • Capital Adequacy and Solvency Law (Law 35/2018): implements CRR and CRD IV provisions on prudential, solvency, and liquidity requirements for banking entities and investment firms.
  • Regulates the minimum capital and liquidity requirements for financial institutions to ensure their stability and solvency.

Insurance Sector

  • Insurance Law (Law 12/2017): establishes a regulatory framework for the Andorran insurance and reinsurance market.
  • Provides a comprehensive framework for insurance companies, ensuring transparency, fairness, and protection of policyholders’ interests.

Anti-Money Laundering and Terrorist Financing

  • AML Law (Law 14/2017): establishes procedures to identify customers, adequate procedures and controls to detect suspicious operations arising from organized crime.
  • Ensures the financial system remains free from money laundering and terrorist financing activities.

Additional Regulations

  • Electronic contracting and operators (Law 20/2014): establishes a basic legal framework for economic activities in the digital space and electronic contracting.

  • Protects consumers’ interests by ensuring fair and transparent online transactions.

  • Effective competition and consumer protection (Law 13/2013): aims to improve conditions for consumer protection and market efficiency.

  • Promotes fair competition among businesses, safeguarding consumers’ rights and promoting economic growth.

  • Insolvency provisions: includes the Decree regulating the cessation of payments and insolvency (dated October 1969).

  • Provides a framework for companies facing financial difficulties, ensuring a fair and orderly process.

  • Personal data protection (Law 15/2003): guarantees and protects fundamental rights of natural persons and their personal and familiar privacy.

  • Safeguards individuals’ right to privacy and confidentiality in the handling of their personal data.