Ukraine sanctions: property registry and payments abroad

Automatic summary, not yet reviewed

1. It allows registrars to record a marginal note with a ban on disposing of property, assets or rights held in the name of front persons, when there are reasonable indications that the real owner is on the European Union sanctions list.
2. The marginal note requires a prior report by Spanish law enforcement agencies, sent through the anti-money laundering prevention body of the Registrars' association. The registered owner does not need to be notified in advance: notification happens the same day the note is recorded, so they can challenge it.
3. The marginal note lasts as long as the sanctioning measure and, if there is no deadline, indefinitely. In any case, it is cancelled when the real owner's name is removed from the European sanctions lists.
4. If an exceptional situation makes it impossible to move funds from Spain, Spanish services abroad with surplus funds can transfer them to other services abroad running short, so they can pay their obligations. The text details the accounting steps depending on whether the receiving service belongs to a Ministry or to a public state agency.
5. In that same situation, the service needing funds may buy foreign currency from third parties (banks, companies or individuals) at the official exchange rate, using its payer cash office accounts or funds. The State Comptroller General's Office will set the accounting procedure.
6. The rule is issued under the State's powers over public registries and general finance, the Government is enabled to develop it, and it takes effect the day after its publication in the official gazette (BOE).

Who it affects

• People or entities on the European Union sanctions lists: A ban on disposing of their assets can be recorded in the registries even if the assets are held in the name of third parties.
• Registered owners of affected assets: They are notified of the marginal note the same day it is recorded, not before, and can challenge it.
• Property, commercial and movable property registrars: They can record the marginal note banning disposal once they receive the required report.
• Services of the Spanish General State Administration abroad: They can receive funds from other services abroad and buy foreign currency from third parties to pay salaries and expenses.
• Spanish law enforcement agencies (Fuerzas y Cuerpos de Seguridad del Estado): They prepare the prior report on indications that the real owner is a sanctioned person.

Words worth knowing

Nota marginal (marginal note)

An entry added in the margin of a public registry record to note something, here a ban on disposing of the asset.

Prohibición de disponer (ban on disposal)

A measure that stops the owner from selling, giving away or mortgaging an asset.

Testaferro (front person or straw man)

A person who appears as the owner of an asset but actually holds it for someone else.

Tracto sucesivo (successive track principle)

A property registry rule: to record something new or correct a record, the owner's consent or a court ruling is needed.

Servicios del exterior (services abroad)

Offices of the Spanish Administration in other countries, such as Consulates and Embassies.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries