FinCEN Files: Spanish Banks’ Role in Global Money Laundering Uncovered in Leaked Data

The following analysis provides insights from the FinCEN Files, a large cache of secret financial intelligence reports, which shed light on the complex web of money laundering operations worldwide. Spanish banks’ involvement in these transactions is of particular note.

Spain’s Role in Money Laundering

According to the data analysis, Spanish financial institutions submitted over 300 suspicious activity reports (SARs) between 1999 and 2017. While this represents only a small fraction (0.02%) of the total SARs (over 2,100) in the FinCEN Files, the sheer volume of transactions in Spain warrants further investigation.

The reports reveal transactions involving high-risk jurisdictions, such as Panama, the British Virgin Islands, and Russia.

Data Analysis Findings

The investigation unearthed several issues with the reports submitted by Spanish banks:

1. Lack of vital information: Reports frequently lacked primary addresses or country codes, making it challenging for investigators to trace transactions’ origins and destinations.
2. Delayed reporting: Significant lapses occurred in reporting suspicious transactions, often taking several months, in violation of federal rules requiring banks to report within 30 days.

Common Reasons for SARs

The most common reasons for filing a SAR in the FinCEN Files were money laundering and corruption. Spanish banks processed transactions for companies registered in secrecy jurisdictions without knowing the ultimate owners of the accounts. Furthermore, some transactions were linked to companies and individuals implicated in fraud, corruption, or sanctions evasion cases:

• Deutsche Bank: Spanish branches reported approximately €140 billion ($159 billion) in transactions between 2011 and 2017.
• BBVA and Santander: These Spanish financial institutions also had numerous reports of suspicious transactions in the FinCEN Files.

Data Collection and Analysis

Given the data’s ambiguities and complexities, ICIJ, along with media partners, employed advanced data extraction techniques and manual checks to analyze the reports. This collaborative effort resulted in a massive dataset, containing over 55,000 records and €500 billion ($569 billion) in suspicious transactions.

Conclusion

The FinCEN Files’ findings serve as a reminder of the need for increased transparency and vigilance in the global financial system. It is crucial, especially in countries like Spain, where significant funds are being processed, and money laundering activities are perceived to be rampant. Effective enforcement mechanisms are essential to discourage money laundering practices and hold banks accountable for their role in these activities.