Spanish Law Cracks Down on Money Laundering and Terrorist Financing: A Look at the Legislation
Spain has a zero-tolerance policy towards money laundering and terrorist financing. Spanish law criminalizes these illicit activities through the Spanish Criminal Code, which outlaws money laundering (Article 301) and terrorist financing (Article 31 bis). Let’s delve deeper into these legislations.
Money Laundering in Spain
Is money laundering and terrorist financing criminalized in Spain?
Yes. Under Spanish law, money laundering is a criminal offense defined in Article 301 of the Spanish Criminal Code. Legal entities can also be held criminally liable for money laundering offenses, as per Article 31 bis.
To whom does this legislation apply?
This legislation applies to both natural and legal persons.
What acts are considered money laundering under Spanish law?
- Acquiring, possessing, using, converting, or transmitting assets knowing they have criminal origins or
- Performing any act to conceal their illicit origin
Understanding the underlying criminal activity is not necessary to prove money laundering.
What level of intent is required to establish a violation?
Money laundering offenses can be committed negligently.
What are the potential penalties for money laundering in Spain?
Penalties include imprisonment ranging from six months to six years, fines of up to three times the value of the assets, disqualification from practicing a profession or operating in certain industries, and temporary or definitive closure of the establishment or premises.
Does this legislation have extra-territorial reach?
No, it applies only within Spain.
Additional Anti-Money Laundering and Counter-Terrorist Financing Regulations
Spanish Law 10/2010 governs money laundering and counter-terrorist financing, mandating registration or reporting obligations for certain businesses and individuals. This Law also outlines administrative infractions and sanctions with reports to be made to the SEPBLAC (Supervisory Authority of the Spanish National Bank).
What are the potential penalties for violating these regulations?
Infractions can result in fines, public warnings, removal from office (with temporary disqualification from holding administrative or managerial positions), or suspension of administrative authorizations to operate.
Enforcing Authorities and Contact Information
Criminal money laundering offenses
These offenses are prosecuted in Spanish Criminal Courts.
Violations of Law 10/2010
These violations are handled by the Money Laundering and Monetary Violations Commission, which can impose prescribed sanctions.
Reporting suspicious transactions
Suspicious transactions reports can be filed with the SEPBLAC, located at C/Alcala 4828014 Madrid, with phone number +34 913 388 808.