Financial Crime World

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Spain’s Anti-Money Laundering (AML) Regime: A Comprehensive Overview

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Institutions Subject to AML Rules

According to Article 2 of Law 10/2010, the following institutions are subject to Spain’s AML rules:

  • Credit institutions
  • Insurance entities and insurance brokers that deal with life or investment insurances
  • Investment firms
  • Management companies of collective investment institutions and investment companies whose management is not entrusted to a management company
  • Institutions for occupational retirement provisions
  • Mutual guarantee companies
  • Electronic money institutions, mobile payment providers, and other legal entities as established in Royal Law Decree 19/2018
  • Persons professionally engaged in currency exchange activities
  • Postal services with respect to the activities of money order or transfer
  • Persons professionally engaged in intermediation in the granting of loans or credits and those who carry out any of the activities provided in Article 15 of Royal Decree 304/2014
  • Real estate agents and property developers
  • Notaries and other professionals involved in the transfer of ownership of assets
  • Casinos, gaming establishments, and other businesses that accept bets

Digital Assets Subject to AML Rules

Law 10/2010 defines digital assets 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 a medium of exchange and can be transferred, stored, or electronically negotiated.

Electronic money institutions and providers of exchange services for virtual currency for fiat currency and custody of electronic purses are obligated entities under Law 10/2010.

AML Compliance Requirements

Covered institutions must comply with the following AML requirements:

  • Due Diligence:
    • General due diligence obligations include identifying the contracting party, clarifying whether the contracting party is acting on behalf of a beneficial owner, and obtaining and evaluating information to identify the beneficial owner.
  • Simplified Due Diligence: Obliged entities can apply simplified due diligence measures in countries or operations with a low risk of money laundering or terrorist financing.
  • Enhanced Due Diligence: Obliged entities must apply enhanced due diligence measures in countries, operations, or situations with a higher risk of money laundering or terrorist financing.
  • Information Obligations:
    • Covered institutions must examine transactions that could be related to money laundering, inform the SEPBLAC about suspicious transactions, and record and retain all documents on AML obligations compliance.
  • Internal Control Requirements: Covered institutions must create appropriate internal safeguards to manage and mitigate the risks of money laundering or terrorist financing.

Conclusion

Spain’s AML regime is designed to prevent and detect money laundering and terrorist financing by setting specific requirements for covered institutions. These requirements include due diligence, information obligations, and internal control measures. The Spanish government has taken steps to enhance its AML framework, including the inclusion of digital assets as obligated entities under Law 10/2010.

Note: This article is a rewritten version of the original text in a media article style. It does not reflect my personal opinion or views on the topic.