Spain Taps into Fight Against Money Laundering with Tough Regulations
Spain has taken a significant step in curbing the scourge of money laundering and terrorist financing by introducing robust regulations that require financial institutions and other designated service providers to implement strict anti-money laundering (AML) and counter-terrorism financing (CFT) measures.
AML/CFT Supervisor
The Commission for the Prevention of Money Laundering and Financial Crimes (Sepblac), Spain’s AML/CFT supervisor, is responsible for overseeing compliance. Sepblac has the power to request information from the European Central Bank (ECB) and national regulators to ensure that all entities adhere to the regulations.
Compliance Requirements
To comply with AML/CFT regulations in Spain, designated service providers must establish a unique program that takes into account their specific risks and circumstances. The program must be based on risk assessment, which serves as the foundation for all AML/CFT procedures, policies, and controls.
Obligated Subjects
Under Spanish law, obligated subjects are required to implement:
- Know Your Customer Procedures
- Customer Due Diligence Procedures
- Enhanced Due Diligence Procedures
- Transaction Monitoring Procedures
- Reporting Suspicious Transactions
- Record Keeping
- Appointing a delegate before Sepblac
- Establishing an Internal Control Body and signing a manual for the prevention of money laundering and terrorist funding
Worker Training
Obligated subjects must also ensure that their workers are aware of the provisions of AML laws by approving an annual training program on money laundering and terrorism financing prevention.
Supervision and Inspection
Sepblac will have access to the manual to carry out its supervision and inspection duties. Obligated subjects must also investigate any incident or activity that may be linked to money laundering or terrorist funding, regardless of its size, and report their findings to Sepblac.
Document and Information Provision
Obligated subjects are required to provide documents and information to Sepblac as needed to exercise its powers. The Commission can request information from the ECB and national regulators to ensure compliance with AML/CFT regulations in Spain.
Conclusion
The tough regulations aim to prevent money laundering and terrorist financing by requiring financial institutions and other designated service providers to implement strict controls, monitor transactions, and report suspicious activities. With Sepblac at the helm, Spain is taking a proactive approach to combating these serious crimes and protecting its financial system.