Association of banks of Andorra declares there are no limits on the inflow and outflow of money in Principality

abaAssociation of banks of Andorra declares there are no limits on the inflow and outflow of money in Principality, reports the Association of Andorran banks (Associació de bancs d’Andorra, ABA.

Earlier on 3d December the financial intelligence department of Andorra published new requirements for financial institutions which determine the ability to control the amounts of money withdrawals and transfers. After that some Andorran media reported on restrictions on cash withdrawals in excess of 250 000 euros.

There are some restrictions concerning cash withdrawals and transfers in Andorra, however, they were installed last year as a monitoring mechanism to prevent money laundering, reports ABA. These restrictions are not connected with the crisis with one of the five Andorran banks Banca Privada d’Andorra or liquidity problems of Andorran banks. The liquidity ratio of the banking system of Andorra today is about 66.32%. This is a higher index than in February 2015, i.e. before the crisis with BPA. In addition, customers can easily withdraw money via bank transfers or cheque.

ABA explains that the new requirements in respect of financial institutions is the need to comply with new international standards.

According to ABA information, currently the solvency ratio of Andorran banks is 22,39%.

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