Financial Crime World

Money Laundering Investigation in Spain: A Look at the Laws and Procedures

In the financial world, few topics generate as much intrigue and concern as money laundering. Spain, a vital player in Europe’s economic landscape, has enacted stringent laws to counteract and prosecute such illicit activities. This article provides an overview of Spanish money laundering legislation.

Spanish Money Laundering Laws

  1. Article 301 of the Spanish Criminal Code (SCC): The primary statute that regulates money laundering in Spain is Article 301 of the SCC. This law targets interactions with assets derived from unlawful situations with the intention to mask their origin.
  2. Law 10/2010 and Royal Decree 304/2014: These legislations aim to prevent and detect money laundering by imposing preventive compliance measures for obliged entities.

[Contributions from: Francisco Málaga, Marcos Soberón, Renata Madariaga, Javier Garcia-Bermejo Hidalgo, Eloy Algorri, Ainhoa Busto, and Arantxa Hernández García (White & Case)]

Proving Criminal Violations of Money Laundering Laws

  1. Criminal Origin of Assets: Assets must have a criminal origin to establish a criminal violation.
  2. Interaction with Assets: There must be an interaction with the assets to substantiate a money laundering violation.
  3. Intention to Hide Criminal Origin: The perpetrator must intend to conceal the criminal origin of the assets.
  4. Wilful Misconduct or Gross Negligence: The violation must be the result of intentional misconduct or gross negligence.
  5. Foreign Crimes and Tax Offenses as Predicates: Criminal activities outside of Spain can serve as predicate offenses for money laundering.

[Contributions from: Francisco Málaga, Marcos Soberón, Renata Madariaga, Javier Garcia-Bermejo Hidalgo, Eloy Algorri, Ainhoa Busto, and Arantxa Hernández García (White & Case)]

Predicate Offences to Money Laundering

  1. Spanish Penal Code Offenses: Any offense from the Penal Code can serve as a predicate offense for money laundering.
  2. Foreign Crimes: Foreign crimes can also be considered predicate offenses.
  3. Tax Offenses: Despite varying opinions within the Spanish Supreme Court, tax offenses remain an ongoing debate as potential predicate offenses.

[Contributions from: Francisco Málaga, Marcos Soberón, Renata Madariaga, Javier Garcia-Bermejo Hidalgo, Eloy Algorri, Ainhoa Busto, and Arantxa Hernández García (White & Case)]

Extraterritorial Jurisdiction

Spanish courts have jurisdiction over money laundering offenses if the predicate offense or part of the criminal acts occurred abroad.

[Contributions from: Francisco Málaga, Marcos Soberón, Renata Madariaga, Javier Garcia-Bermejo Hidalgo, Eloy Algorri, Ainhoa Busto, and Arantxa Hernández García (White & Case)]

Corporate Criminal Liability

Money laundering is not only attributable to natural persons but also to legal entities. Legal persons must comply with supervision, monitoring, and control procedures to avoid criminal liability. Organic Law 1/2019 outlines a list of offenses that result in criminal liability for legal entities, including money laundering.

[Contributions from: Francisco Málaga, Marcos Soberón, Renata Madariaga, Javier Garcia-Bermejo Hidalgo, Eloy Algorri, Ainhoa Busto, and Arantxa Hernández García (White & Case)]

Investigative Authorities

  1. Public Prosecutor’s Office: The Public Prosecutor’s Office conducts investigations into money laundering offenses, aided by the police.
  2. Spain’s Financial Intelligence Unit (SEPBLAC): SEPBLAC is responsible for collecting and analyzing suspicious activity reports.

[Contributions from: Francisco Málaga, Marcos Soberón, Renata Madariaga, Javier Garcia-Bermejo Hidalgo, Eloy Algorri, Ainhoa Busto, and Arantxa Hernández García (White & Case)]

Prosecution Agencies

The prosecution office, in conjunction with the judiciary, is responsible for prosecuting money laundering offenses. Criminal proceedings typically progress from the investigation phase to the trial phase led by the investigation judge or the central investigation judge.

[Contributions from: Francisco Málaga, Marcos Soberón, Renata Madariaga, Javier Garcia-Bermejo Hidalgo, Eloy Algorri, Ainhoa Busto, and Arantxa Hernández García (White & Case)]

Statute of Limitations

  1. Sanction Severity: The length of the statute of limitations for money laundering offenses corresponds to the severity of the imposed sanction, falling between 10 and 15 years based on the offender’s position.

[Contributions from: Francisco Málaga, Marcos Soberón, Renata Madariaga, Javier Garcia-Bermejo Hidalgo, Eloy Algorri, Ainhoa Busto, and Arantxa Hernández García (White & Case)]