Financial Crime World

Navigating Spain’s KYC and AML Compliance Regulations: A Closer Look at Identity and Business Verification

Spain, as a member of the European Union, has stringent regulations regarding Know Your Customer (KYC), Anti-Money Laundering (AML), privacy, identity verification, and digital services. In this article, we delve into the intricacies of complying with these regulations, focusing on identity and business verification.

Regulatory Requirements: An Overview of KYC and AML in Spain

In Spain, the Money Laundering and Terrorist Financing Prevention Act of 2010 establishes the foundation for KYC and AML requirements. Obliged entities are mandated to enforce customer due diligence procedures to prevent illicit activities. The Act requires regulatory entities to:

  • Identify and verify the identities of individuals and businesses establishing new business relationships or transactions worth €1,000 or more.

Identity Verification in Spain: Processes and Documentation

The Spanish government issues national identity cards, or Documentos Nacionales de Identidad, to its citizens. For optimal verification, organizations often request:

  • First and second names
  • National ID number

Acceptable identity documents include:

  • Driver’s licenses
  • Passports
  • National IDs
  • Residence permits

Additionally, Spain’s financial intelligence unit, Sepblac, offers approved remote procedures for identity verification.

Business Verification in Spain: Compliance and Registration

In Spain, businesses must register with the corporate registry and the Spanish tax office. These entities receive a nine-digit VAT number upon registration. Some companies are also required to report Ultimate Beneficial Owner (UBO) information to an official register. UBOs are defined as individuals who either:

  • Own or control more than 25% of a company’s shares or voting rights.
  • Control the entity through different means.

Optimal business verification in Spain often involves verifying:

  • Business registrations
  • VAT numbers
  • Company names

Identity verification may offer a more efficient route for verifying sole proprietorships.

Trulioo: Partnering with a Global Leader for Streamlined Verification in Spain

Navigating KYC and AML compliance in Spain can be a complex process for organizations dealing with people and businesses. Trulioo is your trusted partner with:

  • Extensive data source coverage
  • Local expertise
  • Cutting-edge technology

By combining these assets with services like watchlist screening and adverse media checks, businesses can create a comprehensive onboarding strategy with industry-leading verification rates.

Trulioo’s capabilities enable organizations to:

  • Verify sole proprietorships
  • Decipher complex UBO structures within any Spanish organization.

With an entire suite of in-house verification capabilities and the precision of data science at their disposal, organizations can conquer any onboarding challenge in Spain.