Money Laundering in Spain: What You Need to Know
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Spain has recently incorporated the V Directive on the prevention of money laundering or terrorist financing into its legal system. This directive aims to prevent the misuse of the financial system for illegal activities.
Key Changes and Requirements
The main amendments to Law 10/2010 on the prevention of money laundering and terrorist financing include:
- The inclusion of new obliged subjects, which are required to report suspicious transactions and maintain records of their clients’ identities.
- Strengthened identification of beneficial owners of legal entities through a single registry system that includes information from the Commercial Registry and notarial databases.
- Obliged entities must request this information in their business relationships with legal entities, while legal entities and entities without legal personality are required to obtain, keep, and update their beneficial ownership information.
Information Requirements for Financial Institutions
The law clarifies information requirements for financial institutions, including:
- The need to declare certain transactions
- Maintenance of records of client identities
Additionally, the law defines politically exposed persons and requires international organizations accredited in Spain to draw up a list of these individuals.
Data Protection
In terms of data protection, the new law states that personal data processed for due diligence purposes is covered by EU regulations, eliminating the need for consent from data subjects.
Implementation of Changes
As a result of the transposition of the V Directive, obliged entities must conduct an evaluation exercise and adapt their models and procedures for preventing money laundering and terrorist financing to the new regulatory requirements. The implementation of these changes aims to:
- Improve transparency and availability of information on beneficial owners
- Strengthen the prevention of terrorism and money laundering in Spain
Conclusion
The incorporation of the V Directive into Spanish law represents a significant step towards strengthening the country’s anti-money laundering and counter-terrorism financing regime. Obliged entities must take immediate action to adapt their procedures and models to comply with the new requirements, which aim to improve transparency and availability of information on beneficial owners and strengthen prevention measures.