Financial Crime World

Spain Upholds Commitment to Strong Anti-Money Laundering Regulations

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Madrid, Spain - 6 May 2014

The Spanish government has taken a significant step in updating its anti-money laundering (AML) laws, introducing new regulations that reflect the latest technological advancements and e-money innovations. The amendments aim to strengthen the country’s AML framework, which is considered one of the toughest legal regimes in Europe.

New Obligations for Credit Institutions

  • The updated regulations introduce new obligations for credit institutions, including:
    • Reporting of account openings and closures to SEPBLAC, the Spanish supervisory body for the prevention of money laundering and terrorist financing.
    • Maintenance of a Financial Ownership File, which will be operational within two years.

Juan Palomino, a lawyer at Pérez-Llorca, Spain, commented on the significance of the updates: “The new regulations demonstrate Spain’s commitment to tackling money laundering and terrorist financing. The introduction of simplified due diligence measures for low-risk customers and products is a welcome development, but the exclusion of e-money issued against cash remains a contentious issue.”

Internal Audit Obligations

  • Companies subject to AML regulations are required to conduct periodic audits of their AML policies and procedures.

Low-Risk Customers and Products

  • Financial entities domiciled in the European Union or third equivalent countries are considered low-risk for money laundering, with the exception of payment entities.
  • E-money is also viewed as a product with low risk, provided the device holding the funds meets certain quantitative limits.

Industry Reaction

  • The updates have been welcomed by many in the industry, who see them as a necessary step towards strengthening Spain’s AML regime.
  • However, some critics have expressed concerns about the exclusion of e-money issued against cash and the potential burdens placed on credit institutions.

FATF Praises Spain’s Efforts

  • The Financial Action Task Force (FATF) has praised Spain’s efforts to combat money laundering and terrorist financing, but noted that more work remains to be done.
  • The Spanish government’s commitment to updating its AML laws is a significant step towards achieving this goal.

Conclusion

The updated regulations demonstrate Spain’s commitment to maintaining a strong and effective AML regime, which will help to provide certainty for Spanish businesses and strengthen the country’s reputation as a leading financial hub in Europe.