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Spain’s Anti-Money Laundering Laws and Regulations Get Mixed Assessment
In a recent assessment, Spain’s anti-money laundering laws and regulations have been deemed “largely compliant” or “compliant” in several areas, but still require improvement in others.
Risk Assessment and National Cooperation
One area where Spain has been deemed largely compliant is in assessing risk and applying a risk-based approach. This involves identifying high-risk sectors or activities and implementing measures to mitigate those risks.
- Identifying high-risk sectors or activities
- Implementing measures to mitigate those risks
However, the country still requires improvement in national cooperation and coordination between different government agencies and law enforcement bodies.
Money Laundering Offense
Spain’s money laundering offense has been deemed compliant by assessors, but there are concerns about the effectiveness of confiscation and provisional measures. This involves seizing assets obtained through illicit means and freezing funds suspected of being linked to money laundering or terrorist financing.
- Seizing assets obtained through illicit means
- Freezing funds suspected of being linked to money laundering or terrorist financing
However, there are concerns about the effectiveness of these measures in practice.
Terrorist Financing Offense
The country has also been found to be compliant in terms of its terrorist financing offense, which prohibits the provision of financial services to individuals or organizations involved in terrorism.
- Prohibiting the provision of financial services to individuals or organizations involved in terrorism
However, there are concerns about transparency and beneficial ownership of legal persons and arrangements, as well as the regulation and supervision of non-financial businesses and professions (DNFBPs).
Other Areas for Improvement
In addition to these areas, Spain has been identified as needing improvement in several other aspects of anti-money laundering regulations, including:
- Customer Due Diligence: Ensuring that financial institutions conduct thorough customer due diligence and maintain accurate records.
- Politically Exposed Persons (PEPs): Strengthening controls around PEPs and correspondent banking to prevent money laundering.
- Money or Value Transfer Services and Wire Transfers: Improving regulations around money transfer services and wire transfers to prevent illicit activities.
- Reliance on Third Parties and Internal Controls: Enhancing internal controls and ensuring that reliance on third parties is limited.
- Reporting of Suspicious Transactions: Strengthening reporting requirements for suspicious transactions and preventing tipping-off provisions.
Conclusion
Overall, while Spain’s anti-money laundering laws and regulations have made significant progress in some areas, there is still much work to be done to ensure full compliance with FATF Recommendations. The country will need to address these weaknesses to strengthen its defenses against money laundering and terrorist financing.