Financial Crime World

Here’s the rewritten article in Markdown format:

Spain Tightens Screws on Financial Crime: Regulatory Authorities Get Bigger Role

=============================================

MADRID - In a bid to combat financial crime and protect consumers, Spain has beefed up its regulatory framework governing financial services providers.

Empowering Public Authorities

The move comes as the country seeks to strengthen its anti-money laundering (AML) laws and prevent terrorist financing. The government has empowered public authorities to issue guidelines and regulations on matters such as:

  • Customer due diligence
  • Internal control systems
  • Reporting requirements

Bank of Spain Takes Center Stage

At the forefront of this effort is the Bank of Spain, which will share supervisory duties with the European Central Bank (ECB) under the Single Supervisory Mechanism (SSM). The Bank of Spain will be responsible for overseeing:

  • Less significant credit institutions
  • Payment institutions
  • E-money institutions
  • Financial credit establishments

CNMV Steps Up Collective Investment Scheme Oversight

The Comisión Nacional del Mercado de Valores (CNMV), Spain’s securities market regulator, has also been given greater powers to supervise collective investment schemes and their management companies. This includes:

  • Ensuring compliance with AML regulations
  • Reporting requirements

New Laws and Regulations Take Effect

Several key laws have been enacted to strengthen financial regulation in Spain, including:

  • Law 13/1994 on the autonomy of the Bank of Spain
  • Royal Legislative Decree 4/2015 approving the revised text of the Securities Market Law
  • Law 35/2003 on collective investment schemes

Increased Penalties for Non-Compliance

Financial services providers that fail to comply with these regulations will face stiffer penalties, including:

  • Administrative fines
  • Guidelines from consumer authorities protecting consumers, which can have implications for financial services provision

Additional Requirements and Industry Guidelines

While the main regulatory authorities are the Bank of Spain, CNMV, and Sepblac (the Executive Service of the Commission for the Prevention of Money Laundering and Monetary Offences), state and regional consumer authorities may also issue guidelines on protecting consumers. Financial services providers may be part of professional associations, but these do not have regulatory authority.

Effective Date

The information above is accurate as of January 29, 2021.