Financial Crime World

Title: FATF Report: Spain’s Progress in Fighting Money Laundering and Terrorist Financing

Summary of FATF’s Assessment on Spain’s Measures

Madrid — The Financial Action Task Force (FATF) recently published an update on Spain’s progress in implementing measures against money laundering and terrorist financing. Let’s summarize the FATF’s findings across different domains:

Compliance with FATF Recommendations

The FATF assessment focuses on various aspects of Spain’s regulatory framework. Here is an overview of Spain’s compliance in different areas:

  1. Risk Assessment and Approach (R.1) Spain is largely compliant: They have a national risk assessment strategy in place.

  2. National Cooperation and Coordination (R.2) Spain performs well: A central government body oversees cooperation between different authorities.

  3. Money Laundering Offenses (R.3) Spain is compliant: They have legal frameworks criminalizing money laundering.

  4. Terrorist Financing Offenses (R.5) Spain is compliant: They have legislation against terrorist financing.

  5. Confiscation and Provisional Measures (R.4) Spain remains largely compliant but needs improvement: More extensive use of provisional measures is required.

  6. Targeted Financial Sanctions (R.6 and R.7) Spain is partially compliant: Enhancements are needed to identify and implement targeted sanctions against individuals/entities linked to terrorism or proliferation.

  7. Non-Profit Organizations (R.8) Spain needs to make significant progress: Weak regulations regarding transparency and beneficial ownership are a concern.

  8. Financial Institution Secrecy Laws (R.9) Spain is compliant: However, revisions to the Bank Secrecy Laws are necessary.

  9. Customer Due Diligence (R.10) Spain is largely compliant but needs attention: Financial institutions must consistently apply risk-based due diligence.

  10. Record Keeping (R.11) Spain largely complies: However, there are deficiencies that must be addressed.

  11. Politically Exposed Persons (R.12) Spain is compliant: Improvements in the application of customer due diligence for these individuals are needed.

  12. Correspondent Banking (R.13) Spain is compliant: Ensure adequate risk assessment and mitigation strategies are in place.

  13. Other Measures (R.23) Spain is partially compliant: Steps are necessary to enhance the framework for financial intelligence analysis and dissemination.

Urging for Improvements

The Spanish authorities have been encouraged to address the aforementioned deficiencies as soon as possible to meet FATF standards and create a stronger system in preventing and counteracting money laundering and terrorist financing effectively.