Banking in Andorra is a vital part of the economy. It accounts for about one-fifth of the country’s GDP and is an important connection between Andorra and the global economy.
Compared to other European countries, the Andorran banking system has a recent history with a relatively large amount of change.
During the mid-2010s Andorra landed on the OECD’s list of non-cooperative governments. This status was connected to Andorra’s history as a tax haven. Reforms since then to the Andorran tax system and how banks handle reporting to regulators have cleared Andorra with the OECD.
In 2015, Banca Privada d’Andorra (BPA) was named by the U.S. Treasury Department as a facilitator of money laundering for organized crime. The accusation landed BPA’s CEO in jail and Andorran regulators assumed control of operations.
The past few years have seen a great deal of reform for Andorra’s banking system. Chiefly this means that banking secrecy in Andorra is no longer a selling feature. Banks here now comply with standard international account reporting regulations and know-your-customer rules.
If moving to Andorra is part of your plans, you’ll find it is relatively straightforward to set up a bank account here. Our guide to Andorra’s banks will take you through the finer points as smoothly as possible.