Banks in Andorra

The three banking groups Andbank, MoraBanc and Creand form Andorra's formal banking system. The branch network extends across seven parishes (Parròquies). Andbank has 34 branches and 61 ATMs. Banks accept deposits, operate current and payment accounts, provide loans and, depending on the contract, offer savings and fixed-term deposits, debit, credit or prepaid cards, transfers, direct debits, cash withdrawals, digital banking and safe-deposit boxes. Investment firms, payment institutions and electronic money institutions may offer individual services, but they are not banks and follow a different business model. Andorra's Banking Law (Llei 7/2013) forms a central part of Andorran banking law. The Andorran Financial Authority (Autoritat Financera Andorrana) licenses and supervises banks, monitors financial stability and the security of payment services, among other matters, and handles customer complaints. Andorra is not an EU member. The Monetary Agreement of 2011 establishes the monetary framework, and the euro is the official currency. Depending on the bank, residents, non-residents and people working temporarily in Andorra may apply for an account. The bank typically requires a valid passport or identity card, an address, information about tax residence and a tax identification number, as well as information about occupation and employment. Depending on the case, it may also require a residence or work permit, company or power-of-attorney documents, bank statements, tax returns and evidence of the source of wealth or funds. Acceptance is not automatic because the bank must assess the purpose, country of origin, beneficial owner and risk profile. Creand offers an online account for adults who are natural persons and live in Andorra or abroad, but excludes temporary workers from this product. MoraBanc has its own process for non-residents. These checks are part of preventing money laundering and terrorist financing. Andorra's Financial Intelligence Unit (UIFAND) is responsible for this area. Banks, payment institutions and electronic money institutions must verify identity, beneficial owners, ownership and control structures, as well as the purpose and nature of the business relationship, and must monitor the relationship continuously. Andorran banks do not maintain anonymous accounts. If information cannot be substantiated, the bank may reject or delay the business relationship or transaction, or file a report if there is suspicion. Account holders must update changes to their address, tax residence or status. Missing evidence can trigger an account freeze or delay. A current account is used for receiving and sending money, transfers, direct debits and card payments. IBAN, account limits, minimum balances, branch access, app features and contractual terms differ by bank and product. Andorran banks process euro transfers and direct debits through the SEPA system using IBAN and BIC. A standard payment is typically executed within no more than one business day. Instant payments can arrive around the clock in less than ten seconds if the relevant bank, account and recipient support this function and the fee is accepted. SWIFT and other non-SEPA payments are governed by the conditions of the relevant bank. For an unauthorised or incorrectly executed payment, the account holder should inform the bank immediately and preserve receipts, messages and account activity. Any refund or correction depends on the applicable payment law and the contract. Debit, credit and prepaid cards differ, among other things, in their credit function, limits, foreign use, ATM and online payment features, and fees. 3-D Secure and one-time codes may require an additional check for online payments. In the event of loss or theft, the card must be blocked immediately through the bank. If fraud is suspected, a police report should also be filed. PINs, passwords and one-time codes must not be shared with other people. A bank will not request sensitive access credentials by SMS or email. The Andorran deposit guarantee scheme (FAGADI, Fons Andorrà de Garantia de Dipòsits) applies to deposits held with authorised Andorran banks. It generally protects up to one hundred thousand euros per depositor and bank. For legally defined temporary special credits, enhanced coverage of up to three hundred thousand euros may apply within three months, for example in certain private residential property transactions, marriage or divorce, retirement, dismissal, disability or death, as well as insurance benefits and compensation. Crowdfunding and investment losses are not covered by this deposit protection. The current requirements and exclusions arise from Andorra's Deposit Guarantee Law (Llei 20/2018) and the FAGADI rules. Online and mobile banking are subject to Andorra's Payment Services and Electronic Money Law (Llei 8/2018). Strong customer authentication may be required for online accounts, electronic payments and high-risk remote actions. For security, account holders should use the official app or website, keep devices updated, delete suspicious messages, and immediately change access credentials and call the bank after clicking a phishing link. For a complaint, the service or complaints channel of the relevant bank is responsible first. If the bank does not respond within one month, a complaint can be submitted to the AFA with proof of identity, the form and supporting documents. An AFA statement does not bind the parties on contractual or compensation matters. The competent courts remain decisive for those matters. Fees are not uniform nationwide. Account management, cards, ATMs, transfers, foreign currency and safe-deposit boxes are charged according to the relevant bank's price list. The account-opening period, minimum balance, scope of documents and available instant-payment functions also depend on the bank and risk profile.