How banking privacy works in Andorra today

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🏦 Banking privacy in Andorra: context and key insights

For many years, the idea of “banking privacy” in Andorra was associated with numbered accounts and a certain degree of opacity. That model no longer exists. The country has moved from operating outside international standards to fully integrating into the transparency framework promoted by the OECD and the G20. Yet this evolution has not eliminated confidentiality — it has redefined it.

Today, a resident in Andorra enjoys financial privacy within the country, while the system strictly complies with international obligations concerning accounts held abroad. Understanding this duality — domestic privacy alongside international transparency — is essential for entrepreneurs, investors and individuals managing international structures.

This article outlines, with practical clarity, what information is actually shared, what remains protected, and what residents can expect in the era of CRS, MONEYVAL and global compliance standards.

🏛️ A hybrid model: domestic privacy and international transparency

Banking confidentiality in Andorra has not disappeared; it has evolved. Since adopting the Common Reporting Standard (CRS), Andorra now operates under two parallel principles:

• Domestic privacy for residents: banks do not transmit residents’ financial information for the purpose of international exchange.
• Transparency for non-residents: individuals who are not tax residents in Andorra but maintain accounts in the country are subject to CRS reporting.

This distinction preserves a discreet and secure environment for residents, while ensuring full alignment with international obligations towards non-residents’ home jurisdictions.

At the same time, Andorra receives financial information from other countries regarding accounts its residents hold abroad. This strengthens fiscal coherence, legal certainty and reduces cross-border risk.

➤ For a deeper understanding of the Andorran financial system, see the article Banking system in Andorra: Andorran banks, financial regulation and international presence

💳 How privacy works for tax residents in Andorra

For a tax resident, the financial information generated in Andorra is not automatically reported to foreign authorities. Nor does the country have any internal mechanism equivalent to CRS.

In practice:

• Balances and financial returns generated in Andorra are not shared by default with other countries.
• Banks only disclose information in response to legally valid requests (tax, judicial or AML/CFT related).
• Confidentiality is protected by Andorran law and by standards equivalent to the GDPR.

A resident who complies with their tax obligations enjoys a secure framework: what is generated in Andorra remains in Andorra, always within an internationally coherent structure.

➤ To understand how these returns are taxed, see the article Taxation of financial income in Andorra: treatment of residents and non-residents

🌍 What information is actually shared internationally

CRS requires Andorran financial institutions to correctly identify their clients’ tax residency and to report information on those who are not residents of Andorra.

The exchanged information includes:

• Identification details
• Account number and type
• End-of-year balance
• Financial returns
• Beneficial owners in the case of entities

Andorra applies a narrow approach, meaning it exchanges information only with jurisdictions that have signed the multilateral agreement.

This framework reinforces the country’s international reputation and facilitates correspondent banking, account opening and cross-border operations.

➤ For a clear explanation of CRS, see the article Common Reporting Standard (CRS): the global transparency standard and its impact on Andorra

🛡️ The role of AML/CFT and the legacy of the BPA case

Andorra’s banking sector has undergone a profound transformation under global anti-money laundering standards (AML/CFT). MONEYVAL has formally recognised the country’s progress with favourable evaluations.

The BPA case accelerated this shift, strengthening:

• Identification of beneficial owners
• Verification of the source of funds
• Oversight of cross-border operations
• Documentation for companies and asset-holding structures
• Onboarding processes for international clients

The result is a more demanding system, but also one that is more stable, secure and aligned with leading international practices.

➤ To learn more about MONEYVAL and FATF, see the article The FATF and MONEYVAL grey list: what it really means and how it affects Andorra

👤 What residents or investors can expect when operating in Andorra

Three essential points:

• Privacy yes; opacity no
  Domestic confidentiality is robust, but framed within strict international cooperation.
• Foreign information does reach Andorra
  Accounts held abroad may be reported through CRS, supporting overall fiscal coherence.
• Companies must justify their activity
  Intragroup loans, cross-border flows and real economic activity must be properly documented.

➤ The country’s general tax framework is explored in the article Taxation in Andorra: structure, tax rates and real advantages

Altogether, Andorra offers a model of responsible privacy, fully aligned with international best practices.

⚖️ Conclusion: discretion with legal certainty

Banking privacy in Andorra no longer means secrecy, but a balance between domestic confidentiality and international cooperation. The country provides stability, predictability and a mature banking system that allows individuals and businesses to operate confidently when their personal or corporate structures are properly designed.

📩 Need to review your situation discreetly?

If you would like to assess how your personal, corporate or asset structure fits within Andorra’s banking and regulatory framework, we can review it with absolute confidentiality.
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Last review: November 2025