Spain’s Efforts to Prevent Money Laundering and Terrorist Financing

Madrid, Spain - The Spanish government has taken significant steps to implement anti-money laundering (AML) measures and prevent terrorist financing. In this article, we will discuss the AML rules and compliance requirements for financial institutions in Spain.

Institutions Subject to AML Rules

According to Article 2 of Law 10/2010, a wide range of institutions are subject to AML rules, including:

• Credit institutions
• Insurance entities and insurance brokers
• Investment firms
• Management companies of collective investment institutions
• Mutual guarantee companies
• Electronic money institutions
• Persons professionally engaged in currency exchange activities
• Postal services with respect to the activities of money order or transfer
• Auditors, chartered accountants, tax advisers, and authorized tax agents
• Notaries and registrars
• Lawyers, court agents, and other advisors
• Casino businesses
• Providers of exchange services for virtual currencies and custody of electronic purses

Digital Assets Subject to AML Rules

Law 10/2010 defines virtual currencies as “any digital representation of value not issued by a central bank or public authority, which is not necessarily associated with an established legal tender and does not possess the legal status of currency or money but is accepted as medium of exchange and can be transferred, stored, or electronically negotiated.”

In this sense, electronic money institutions and providers of exchange services for virtual currencies and custody of electronic purses are included as obligated entities.

AML Compliance Requirements

Covered institutions must comply with three categories of compliance requirements:

1. Due Diligence Requirements:
   • General due diligence obligations
   • Simplified due diligence obligations
   • Enhanced due diligence obligations
2. Information Obligations:
   • Reporting suspicious transactions to the Commission for the Prevention of Money Laundering and Monetary Offences (SEPBLAC)
   • Maintaining records of AML compliance
3. Internal Control Requirements:
   • Creating internal safeguards to manage and mitigate the risks of money laundering and terrorist financing

The Spanish government has taken significant steps to prevent money laundering and terrorist financing, including the creation of SEPBLAC and the implementation of AML measures in various sectors. These efforts demonstrate a commitment to ensuring the integrity of the financial system and preventing the misuse of funds for illegal purposes.