Andorra is a country in evolution and with a clear projection abroad.
This has meant that a series of needs have been created and a new economic framework is being developed to bring the Andorran economy into line with its neighbouring countries.
As a result, Andorra is rapidly and constantly adapting its legal framework to international standards and it will continue to do so in the coming months.
In this context, the Andorran banks are continuously monitoring the most up-to-date issues such as international regulations and legislation, strategic sector risks, supervisory systems, good practice requirements defined by the Basel Committee, the challenges of ensuring financial stability, confidentiality and transparency, new financial and insurance products, as well as ethics, professional practices and corporate governance of the financial system, in addition to other matters of interest to the sector.
On 30 June 2011, the Principality of Andorra signed a Monetary Agreement with the European Union which was deposited with the European Commission in Brussels on 23 February 2012 and came into force on 1 April 2012.
The Monetary Agreement between the Principality of Andorra and the European Union recognises the euro as the official legal tender of the Principality and grants the right to coinage (senyoratge). Law 17/2013 on the introduction of the euro within the framework of the Monetary Agreement signed between the Principality of Andorra and the Union European was passed on 10 October 2013.
The agreement also comprises:
- the application of European legislation on the protection of the euro against fraud and falsification, regulations on euro notes and coins, the prevention of money laundering and certain European regulations on banking and finance by means of direct transposition or equivalent measures in accordance with a defined schedule.
- the signing of the IOSCO protocol for multilateral agreement on consultations, cooperation and the exchange of information on the securities market, which was signed on 17 September 2013.
The Andorran legal system has been modified since the Monetary Agreement first came into effect on 1 April 2012 in order to adapt it to the legal acts and regulatory provisions of the European Union established in the annex of the Agreement.
Article 8 of the Monetary Agreement provides that the European Commission amend the Annex at least once a year in order to take into consideration any new legal acts and regulations of the EU that are relevant. The Government of Andorra approved the last amendment to the Annex on 17 May 2017.
The Regulation developing Law 17/2013 of 10 October, on the introduction of the euro within the framework of the Monetary Agreement signed between Principality of Andorra and the European Union was approved on 17 December 2014, and came into force on 28 January 2015. The aim of these regulations is to develop the law and to finish incorporating the legal acts and rules of the European Union that are mentioned in the annex to the Monetary Agreement concerning euro notes and coins and the prevention of fraud and the falsification of euro notes and coins in the Andorran legal framework.
The Principality is making a significant effort to bring its legislative framework into line with the Community acquis, particularly, in relation to banking and finance legislation