What is KYC and why is it important?

KYC is a process by which financial institutions collect, analyse and verify information and documentation about their current and potential clients with the aim of preventing money laundering and terrorist financing. In Andorra, where transparency and financial integrity are a reality, the effective implementation of KYC is crucial for any banking institution. People who open bank accounts in Andorra, both individuals and legal entities, must provide detailed personal information and documentation, as well as data on the operations that will be carried out on the bank account. Once provided to the bank, this documentation and information are analysed to ensure consistency and reasonableness before final approval.

KYC, a security guarantee for the bank and for clients alike

Proper KYC management is a guarantee of security for banking institutions, but also for their clients. The process allows for maximum financial transparency. KYC is an essential element for banks in relation to their compliance with current legislation on the prevention of money laundering and the financing of terrorism.

It also helps to offer personalised services with a deeper understanding of their clients, as well as the operations that will be carried out on the account. Through KYC, banking institutions in Andorra can offer services better suited to their needs.

Challenges and solutions

While KYC brings numerous benefits, it also presents challenges. One of the most important of these challenges is to manage to structure the process comprehensively in such a way that it is as rigorous and detailed as possible, but without this excessively delaying the time necessary to open the account. MoraBanc, with its innovative vision, uses systems that allow for the full integration of KYC in the daily management of clients.

In short, KYC is not only a regulatory obligation, but also a vital tool for building transparent financial relationships between the client and the bank. Its effective implementation not only strengthens the financial institution's position in terms of regulatory compliance, but also contributes to building strong and trusting relationships with all clients.

Regulations applicable to Andorra

Law 14/2017 of 22 June, on the prevention and fight against the laundering of money and securities and the financing of terrorism (amended by law 37/2021).

Implementing regulation of Law 14/2017 of 22 June on the prevention of and the fight against the laundering of money or securities and the financing of terrorism.