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Banking regulation in the Principality of Andorra primarily focuses on ensuring the efficiency & stability of banking & financial institutions. Overall, Andorran legislation is geared toward increasing confidence in the country's financial sector & protecting investors. 

Considering opening a financial company in Andorra? IQ Decision UK can help you with and more.

Regulation of Banking Activities in the Principality of Andorra

Only banking establishments authorized by AFA, the country’s main financial regulator, are allowed to provide banking services in the principality of Andorra. Some of the major services banks can provide include receiving deposits from customers & providing all kinds of loans. In addition, local banks can provide support & investment services.

Banking activities in the Principality of Andorra are regulated as per internationally accepted  standards. The standards are also used as a guideline for adapting the country’s banking regulation. Under a deal reached with the IMF, the Andorran government must abide by a number of directives & regulations regarding finance, banking & AML.

Considering registering a financial company in Andorra? Contact IQ Decision UK and get a consultation on obtaining a financial services license in the Principality of Andorra.

Incorporating a Financial Company in the Principality of Andorra

The range of services provided by financial institutions in the Principality of Andorra is fairly limited. Let’s take a look at some of them:

  • investment
  • financing
  • CIS

Only institutions created for an exclusively corporate purpose & authorized to provide financial services in the Principality of Andorra can engage in the above activities.

Maintaining openness, independence & competitiveness of the country’s financial sector is the key task of Andorra’s banking sector. Under a deal reached with the EU, the Andorran government is committed to supporting reporting standards of the OECD.

Obtaining a Banking License in the Principality of Andorra

Banking institutions in the Principality of Andorra must observe specific requirements with regard to solvency & liquidity. In particular, a 10% solvency ratio & 100% liquidity ratio are the two prerequisites that they must meet to obtain a banking license in the Principality of Andorra.

Banks in Andorra should have in place effective procedures for evaluating & continuously maintaining equity capital sufficient to offset risks they might be exposed to. In addition, banking institutions in the Principality of Andorra are required to have an authorized capital of thirty million Euros.

Legal Advice

Banking legislation in the Principality of Andorra is currently undergoing major changes. A special emphasis is being placed on investor protection & creation and strengthening of comprehensive regulatory mechanisms for financial institutions. 


Interested in conducting banking activities in the Principality of Andorra? Seeking to obtain a financial services license in the Principality of Andorra? IQ Decision UK is the answer. Our company will be happy to give you legal advice on regulation of banking services in Andorra.