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Spain Fails to Meet FATF Recommendations on Financial Crime Reporting Requirements
A recent evaluation by the Financial Action Task Force (FATF) has revealed that Spain has fallen short of meeting several key recommendations regarding financial crime reporting requirements. The country’s rating reflects its implementation of technical requirements aimed at preventing money laundering and terrorist financing.
Compliance Rating
According to the report, Spain is compliant in just 14 out of 40 areas assessed by the FATF. This means that there are significant gaps in the country’s implementation of financial crime reporting requirements.
Non-Compliant Areas
The report identifies several areas where Spain is non-compliant with FATF recommendations:
- Assessing risk (R.1)
- National cooperation and coordination (R.4)
- Money laundering offence (R.11)
- Confiscation and provisional measures (R.12)
- Record keeping (R.13)
- Politically Exposed Persons (PEPs) (R.15)
- Correspondent banking (R.20)
- New technologies (R.27)
- Reporting of suspicious transactions (R.15)
- Powers of supervisors (R.27)
Partially Compliant Areas
Spain was also found to be partially compliant in areas such as:
- National cooperation and coordination (R.3)
- Money laundering offence (R.5)
- Confiscation and provisional measures (R.6)
- Record keeping (R.7)
- Politically Exposed Persons (PEPs) (R.8)
- Correspondent banking (R.9)
- New technologies (R.16)
- Reporting of suspicious transactions (R.17)
- Powers of supervisors (R.21)
Areas of Concern
The report highlights several areas of concern, including:
- Lack of effective measures to prevent money laundering and terrorist financing
- Inadequate national cooperation and coordination between authorities
- Insufficient record keeping by financial institutions
Progress Made
Despite these shortcomings, Spain has made progress in some areas, such as:
- Assessing risk (R.2)
- National cooperation and coordination (R.10)
- Money laundering offence (R.14)
- Confiscation and provisional measures (R.18)
- Record keeping (R.29)
- Politically Exposed Persons (PEPs) (R.31)
- Correspondent banking (R.32)
- New technologies (R.33)
- Reporting of suspicious transactions (R.34)
- Powers of supervisors (R.35)
Call to Action
The FATF has called on Spain to address these deficiencies and implement the necessary reforms to improve its financial crime reporting requirements. The country must demonstrate significant progress in the coming months to avoid being placed on the FATF’s list of countries that are not cooperating with anti-money laundering efforts.
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