Spain’s Efforts to Combat Financial Crime Praised but Improvement Needed
A recent report by the global financial watchdog, the Financial Action Task Force (FATF), has commended Spain’s progress in combating money laundering and terrorist financing, while highlighting areas that require improvement.
Money Laundering Risks
According to the report, Spain faces a range of money laundering risks, including:
- Organized crime
- Drug trafficking
- Ongoing threats from terrorism and terrorist financing
The FATF evaluation examined Spain’s laws, institutions, and implementation of anti-money laundering measures, finding that the country has made significant progress since its 2006 evaluation.
Progress Made
The report commended Spain for having:
- Up-to-date laws and regulations
- A strong financial intelligence unit
- Effective investigations and prosecutions of money laundering cases
However, the report also identified several areas where improvement is needed.
Areas for Improvement
These include:
- Increasing the terms of imprisonment imposed on those convicted of money laundering
- Strengthening the implementation of targeted financial sanctions to freeze terrorism-related assets
- Improving the consistency of anti-money laundering measures across all sectors
FATF President Roger Wilkins welcomed Spain’s progress, but emphasized that there is always more work to be done.
Implementation Challenges
The report noted that while Spanish authorities have been effective in disrupting the financing of terrorist groups, weaknesses remain in the implementation of targeted financial sanctions. Additionally, the report found that anti-money laundering measures applied by banks and notaries are strong, but implementation in other sectors is variable.
Recommendations for Improvement
The FATF has highlighted a number of priority actions for Spain to take to improve its system to combat money laundering and terrorist financing.
Full Report Available
The full report can be accessed at www.fatf-gafi.org/countries/s-t/spain/documents/mer-spain-2014.html.
Contact Information
Journalists seeking further information can contact Alexandra Wijmenga-Daniel at the FATF Secretariat on tel. 33 1 45 24 95 23.
The Financial Action Task Force (FATF) is a global body responsible for setting and monitoring international standards on combating money laundering and the financing of terrorism.