Despite the shadow cast by the BPA scandal, Andorra’s financial system remains resilient and aligned with international standards. Over the past decade, Andorra has made considerable progress in modernizing its banking framework, promoting transparency, and strengthening its compliance with global financial regulations.

Since 2009, the country has been removed from the OECD’s list of uncooperative tax havens, marking a major milestone in its journey toward financial credibility. Andorra has undergone rigorous reviews by institutions such as MoneyVal (Council of Europe’s anti-money laundering body) and the Organisation for Economic Co-operation and Development (OECD), particularly concerning the exchange of financial information.

To further adapt its financial model to international expectations, Andorra is collaborating with Liechtenstein, Monaco, and San Marino on forming an agreement with the European Union. These efforts are part of a broader initiative to diversify Andorra’s economy, particularly through the development of its services sector.

According to former Minister of Foreign Affairs Gilbert Saboya, “Andorran banks maintain a solvency ratio of 20% and a liquidity ratio of 65%, supported by stable family ownership and sound management. Their growth has primarily come from acquiring Spanish banks, rather than expanding aggressively into South America.”

In terms of anti-money laundering (AML) measures, Andorra has implemented strict controls to ensure full compliance with international standards. A significant step forward was the 2011 Monetary Agreement with the EU, which led to the adoption of the entire EU legal framework. The country has since introduced a robust tax framework, aimed at balancing the national budget while encouraging cross-border cooperation. Double taxation agreements have already been signed with Spain, France, and Luxembourg, with negotiations underway with Portugal.

Looking ahead, Andorra is positioning itself as a global hub for services such as consulting and financial advisory. The government continues talks with Monaco and San Marino to create a coalition that could access the EU internal market—an initiative that underscores the country’s commitment to economic diversification.

Authorities remain confident that the Banca Privada d’Andorra (BPA) money laundering case was an isolated incident, attributed to failings in upper management rather than a systemic issue. As reforms continue, Andorra’s financial system is set to emerge even stronger, grounded in transparency, solvency, and international cooperation.