INAF was set up by the Law of 12 June 1989 setting up the Institut Nacional Andorr de Finances as a public financial institution in order to facilitate the financing of the public sector, to help the government to carry out its social and economic aims and to assist the authorities in running financial and economic policy. Ten years later with the passing of Law 14/2003, of 23 October, Institut Nacional Andorr de Finances which abolishes the two previously mentioned laws, the functions of the INAF were increased so as to give it more independence and, in general, to bring its powers into line with those of supervisory entities in other countries. From the Law 35/2010, of June 3, on the regime of authorization for the creation of new entities operating within the Andorran financial system, the faculty to sanction the very serious infractions is also held by the INAF. The 2003 law gives the Andorran National Institute of Finance the functions proper to the authority for the Andorran financial system which are to promote and see to the good running and stability of the Andorran financial system which is one of the main pillars of the Andorran economy and characterized by its reputation due to its solidity and the rigorous application of international standards with regard to its regulation.