Spanish Regulators Crack Down on Money Laundering and Terrorist Financing: A Look at Spain’s AML/CFT Framework and Key Regulations

Spain’s prosperous economy and thriving business landscape make it an attractive target for financial criminals seeking to exploit its financial system for money laundering, terrorist financing, and other illicit activities. To combat these threats, the Spanish government has established a formidable anti-money laundering (AML) and counter-terrorist financing (CTF) regulatory framework, under the supervision of Spain’s primary AML/CFT regulator, the Commission for the Prevention of Money Laundering and Financial Crimes (SEPBLAC).

Establishment of SEPBLAC (1993)

Commission for the Prevention of Money Laundering and Financial Crimes (SEPBLAC)
Spain’s primary AML/CFT regulator and financial intelligence unit (FIU)
Operates under the authority of the Secretariat of State for Economy and Business Support

Main Spanish AML Regulations

Law 10/2010 of 28 April on the Prevention of Money Laundering and Terrorist Financing
Enforces risk-based compliance obligations and reporting requirements
EU’s Fifth and Sixth Anti-Money Laundering Directives (5AMLD, 6AMLD)
Harsh penalties for money laundering offenses

Achieving Compliance with Spain’s AML Regulations

Adopt a risk-based approach to AML/CFT compliance
Assess customer risk and implement proportionate measures

Customer identification

Collecting and verifying identifying information
Building accurate risk profiles

Beneficial ownership

Verifying UBO identities

Suspicious transactions

Monitoring and reporting high-risk transactions

Customer screening

Checking customers against international sanctions lists and PEP lists

Adverse Media Screening

Screening customers against news stories and social media

Incoming Regulations for AML in Spain

EU’s Mica and Transfer of Funds Regulation (TFR)
Affecting crypto-asset and stablecoin service providers
Effective in 2024

Technology Solutions for AML Screening

Ripjar’s Labyrinth Screening platform
Comprehensive searches of global data sources
Quick delivery of actionable financial intelligence
Minimizing false positive alerts