Institutional Relations

The AFA cooperates with the State Agency for the Resolution of Banking Entities (AREB) within the framework of the processes of recovery and resolution of entities, as set out in Law 7/2021, of 29 April, on the recovery and resolution of banking entities and investment firms.

To this end, a Memorandum of Understanding has been signed today, April 3, 2023 between the two authorities establishing a framework for mutual assistance in order to achieve a better coordination in the preparation and planning of the recovery of entities, in the implementation of early intervention measures and in the planning and execution of the resolution phase, as well as to ensure an appropriate exchange of information necessary for the exercise of the powers attributed to both authorities by the legislation in force, and thus promote and ensure the stability of the financial system.

The AFA cooperates with the Andorran Police Force in various fields related to the financial system and the insurance and reinsurance sector. In an effort to strengthen cooperation between both authorities, on 6 August 2020, a Memorandum of Understanding that formally establishes a framework for mutual assistance to exercise more effectively their respective functions entrusted by law was signed. This provides the formal framework for the exchange of information and technical assistance or in any other aspect related to the exercise of their functions. Highlighting, among others, the cooperation in the field of the application of Law 17/2013, of 10 October, on the introduction of the Euro in the framework of the Monetary Agreement signed between the Principality of Andorra and the European Union and the Regulations that develop it (See the Euros section for more details).

The AFA acts as custodian for the funds destined to the international reserves of the Principality of Andorra in accordance with the provisions of Law 36/2022, of 24 November, on the creation of international reserves and access by the financial system to emergency liquidity assistance . In turn, the AFA deposits these reserves in central banks and implements the investment decisions of the International Reserves Management Commission.

In this regard, the AFA cooperates and coordinates with the Government, and specifically with the Ministry of Finance to provide these State treasury services. To this end, a Memorandum of Understanding was signed on 28 December 2022 setting out the terms and conditions under which the AFA provides these services to the Government.

The AFA cooperates and coordinates with the Public Prosecutor’s Office of the Principality of Andorra so that both Institutions can exercise, more effectively, their respective functions entrusted to them by the legislation in force.

A Memorandum of Understanding was signed on February 23rd 2021, which provides the formal framework that allows the exchange of information, the technical assistance and the cooperation in investigations related to insider dealing,  market manipulation or any other criminal act, in order to fight socio-economical criminality which in recent years has become one of the main forms of crime.

The AFA cooperates and coordinates with the Public Prosecutor’s Office of the Principality of Andorra so that both Institutions can exercise, more effectively, their respective functions entrusted to them by the legislation in force.

A Memorandum of Understanding was signed on February 23rd 2021, which provides the formal framework that allows the exchange of information, the technical assistance and the cooperation in investigations related to insider dealing,  market manipulation or any other criminal act, in order to fight socio-economical criminality which in recent years has become one of the main forms of crime.

The AFA is an ordinary member of the International Organization of Securities Commission (IOSCO) and signatory of the IOSCO Multilateral Memorandum of Understanding (MMoU) concerning consultation, cooperation and information exchange in the field of securities markets since September 19^th 2013. The cooperation, assistance and exchange of reciprocal information for the purposes of regulation and supervision of the stock markets are thus internationally formalized.

The Andorran Financial Authority is a member of the International Association of Insurance Supervisors (IAIS).

With this incorporation, the AFA strengthens the international cooperation in matters of insurance in order to guarantee the stability of insurance and reinsurance system of the Principality of Andorra.

The Andorran financial system operates in close relation with the euro zones financial system. In follow-up to commitments under the Monetary Agreement signed on 30^th June 2011 and in order to ensure equality, Andorra must transpose the Andorran legal framework and implement the European Commission Acquis established in the annex to the monetary agreement, specifically with regards to regulation in banking and financial matters, as well as the legislation on the prevention of money laundering, the prevention of fraud and the falsification of means of payment other than cash, and the obligation to notify statistical data.

Banco Central del Uruguay

(29-01-2020)

Banco Central do Brasil

(01-04-2021)