Financial Crime World

Money Laundering in Spain: What You Need to Know

Spain’s efforts to combat money laundering have been assessed by the Financial Action Task Force (FATF), an intergovernmental organization that sets standards for combating money laundering, terrorist financing, and other related threats.

FATF Follow-Up Assessment for 2019

According to the FATF Follow-Up Assessment for 2019, Spain has made significant progress in implementing the technical requirements of the FATF Recommendations. The assessment evaluated Spain’s performance across a range of key areas, including:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Money laundering offenses
  • Confiscation and provisional measures
  • Terrorist financing offenses

The assessment found that Spain is “compliant” in 34 out of the 40 assessed areas, indicating strong implementation of the FATF Recommendations. In particular, Spain has made notable progress in areas such as:

  • Customer due diligence
  • Record keeping
  • Internal controls and foreign branches and subsidiaries

Areas for Improvement

However, Spain also identified some areas for improvement, including:

  • Enhancing its powers of supervisors
  • Regulation and supervision of designated non-financial businesses and professions (DNFBPs)
  • International cooperation on mutual legal assistance and extradition

The FATF Recommendations

The FATF Recommendations are designed to help countries implement effective measures to prevent money laundering and terrorist financing. By assessing a country’s progress in implementing these recommendations, the FATF provides valuable insights into areas where improvement is needed.

Conclusion

In conclusion, Spain has made significant strides in combating money laundering, but there are still areas that require attention and improvement. As a key player in the global fight against financial crime, Spain’s efforts will continue to be closely monitored by the international community.