Financial Crime World

Andorra’s Comprehensive Regulatory Framework for Financial Services

Overview of Key Laws and Regulations

Andorra has established a robust legal framework to govern its financial services industry. This framework includes various laws and regulations that aim to create stability, protect investors, and promote efficiency within the sector.

Regulatory Framework: Banking and Financial Services

  • MiFID II: An amendment to the MiFID II Draft Bill, incorporating EU provisions into Andorra’s legal framework.
  • Law 10/2008: Regulates collective investment undertakings, including their constitution, functioning, and distribution.
  • Decree 2016/47: Requires entities operating in the Andorran financial system to prepare annual accounts according to IFRS adopted by the European Union.

Regulatory Framework: Insurance Sector

  • Law 12/2017: Regulates and supervises insurances and reinsurances in the Principality of Andorra.

Regulatory Framework: Anti-Money Laundering (AML) Provisions

  • Law 14/2017: Implements AML provisions, aligning with EU regulations and international standards.

Regulatory Framework: Financial Sector Stability

  • Law 10/2013 (AFA): Establishes the Andorran Financial Authority’s nature, legal status, objectives, functions, competences, and responsibilities.
  • Law 20/2018: Regulates the Andorran Guarantee Deposit Fund and Investment Insurance Scheme, aligning it with EU regulations.
  • MoU with Spain: A memorandum of understanding between Andorra and Spain for consolidated cooperation in the supervisory framework.

Key Areas of Regulation

The regulatory framework in Andorra is designed to provide stability, security, and efficiency within the financial sector while protecting consumers and investors. The key areas of regulation include:

  • Banking and Financial Services: Regulated through various laws, including MiFID II, Law 10/2008, and Decree 2016/47.
  • Insurance Sector: Governed by Law 12/2017 on the Regulation and Supervision of Insurances and Reinsurances in the Principality of Andorra.
  • Anti-Money Laundering (AML) Provisions: Implemented through Law 14/2017, which aligns with EU regulations and international standards.
  • Financial Sector Stability: Maintained by laws such as Law 10/2013 (AFA), Law 20/2018, and Decree 2016/47.