Regulation and prevention of money laundering in Spain

From a legislative point of view, the prevention of money laundering in Spain is regulated by Law 10/2010 of 28 April 2010, Royal Decree 925/1995 of 9 June 1995, and Law 12/2003 of 21 May 2003.

Furthermore, in July 2013, the Association of Experts in the Prevention of Money Laundering in Spain was established in Madrid, with the name INBLAC (Institute of Experts in the Prevention of Money Laundering), consisting of academics and professionals concerned by the issues of money laundering. The Association aims to establish institutional relations with National and International Authorities competent in the area of the prevention of money laundering and the financing of terrorism, especially with the Executive Service of the Commission for the Prevention of Money Laundering and Monetary Infringements (SEPBLAC), to provide quality standards in the profession, and to ultimately become an academic and professional debate and exchange forum on issues of money laundering.

Regarding the obligated subjects of the legislation, determined persons are obligated to give information about activities they believe may be linked or related to laundering. Thus,  financial institutions (credit institutions, insurers, investment managers, mutual guarantees, payment and electronic money entities), promoters and intermediaries in the sale of property, tax consultants, auditors, lawyers, attorneys, notaries, registrars, gambling casinos, antique shops, amongst others, have this obligation. Additionally, those that professionally trade goods are also obligated when charges or payments are equal to or more than 15,000 Euros in cash, by bank checks to the carrier denominated in any other currency or any other physical medium, including electronic, designed to be used as a way of payment to the carrier.

At the same time, the legislation imposes new obligations on associations and foundations. Article 39 provides that associations and foundations must conserve, for a minimum of 10 years, the records with the identification of all persons that contribute or receive free title funds or resources. These records will be available to the Protectorate, the Surveillance Commission of Terrorist Financing Activities, the Commission on the Prevention of Money Laundering and Monetary Infringements and other competent judicial and administrative bodies for the prevention of money laundering and terrorism.

Cristina Sandoval & Jesús Sánchez

For further information regarding money laundering in Spain,