Financial Crime World

Title: FATF Identifies Key Improvements in Spain’s AML/CFT Regulations

FATF Commends Spain’s Progress in Combating Money Laundering and Terrorist Financing but Identifies Areas for Improvement

5 December 2014, Paris

The Financial Action Task Force (FATF) has recognized Spain’s robust framework for preventing money laundering (ML) and terrorist financing (TF). Spanish laws, regulations, and sound institutions are commended for addressing these risks effectively. However, the FATF has identified several areas requiring enhancement.

FATF’s Evaluation of Spain’s AML/CFT Efforts

The FATF identified various risks, such as organized crime, drug trafficking, and terror threats, in evaluating Spain’s ML/TF prevention measures. While Spain’s competent laws and regulations and strong institutions—most notably, a powerful financial intelligence unit—address these risks, there are essential improvements needed:

  1. Imprisonment periods for ML and TF offenders are considered a gap.
  2. Weaknesses in implementation of targeted financial sanctions for terrorism-related assets need addressing.

Despite recognizing Spain’s successes in dismantling terrorist financing networks, FATF President Roger Wilkins emphasized the importance of strengthening these measures.

Strengths and Weaknesses in Spain’s AML/CFT System

Spain’s anti-money laundering measures in banks and notaries are a significant strength. The intricate company prevention system is particularly notable. However, inconsistencies are observed in the implementation of these measures in other sectors.

Progress since 2006 Evaluation and Priority Actions for Spain

Since the 2006 evaluation, the Spanish government has dedicated efforts to updating laws and institutions dealing with ML and TF. The FATF evaluation acknowledges Spain’s overall strategy as effective, but there is no room for complacency. The following priority actions are recommended for Spain:

  1. Address FATF’s concerns regarding imprisonment periods and the implementation of targeted financial sanctions for terrorism-related assets.

For a detailed and comprehensive assessment of Spain’s AML/CFT system, utilizing the revised FATF Recommendations from 2012, visit the FATF website: www.fatf-gafi.org/countries/s-t/spain

Journalists seeking further information are invited to contact Alexandra Wijmenga-Daniel at the FATF Secretariat (tel. 33 1 45 24 95 23).