Rules so banks and other businesses block money laundering

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1. The law protects the financial system and other economic sectors by requiring measures to prevent money laundering and terrorist financing. It defines both, even when the dirty money comes from another country.
2. It lists the obligated parties: banks, insurers, notaries, lawyers, real estate agents, casinos, jewelers and many more. When an employee acts for a company, the obligations fall on the company.
3. Before doing business, firms must identify the customer with valid documents, find out who the beneficial owner is (who owns or controls more than 25 percent), learn the purpose of the relationship, and monitor transactions continuously.
4. Checks can be simplified for low-risk customers, such as public entities or listed companies, and strengthened for high-risk cases, such as private banking, money remittance or currency exchange.
5. If there are signs of money laundering, the business must examine the transaction and report it to the Servicio Ejecutivo de la ComisiónServicio Ejecutivo de la Comisión The office that receives and analyzes reports on suspicious transactions and supervises compliance., and may refuse to carry it out. Telling the customer that a report was made is forbidden.
6. Anyone entering or leaving Spain with payment instruments worth 10,000 euros or more (or moving 100,000 euros within the country) must declare them. If they fail to declare or lie, officials can seize the money.
7. Violations are classified as very serious, serious or minor. Fines range from 600 euros up to, in very serious cases, 5 percent of net assets or 1.5 million euros, plus public warnings or license revocation.
8. The Comisión de Prevención del Blanqueo de Capitales e Infracciones Monetarias coordinates the policy, with the Servicio Ejecutivo as the body that receives reports, analyzes information, and supervises and inspects the obligated parties.

Who it affects

• Banks, insurers, investment firms and other financial entities: They must identify customers, report suspicious transactions and keep internal controls, with fines if they fail.
• Notaries, property registrars, lawyers, auditors and tax advisors: They must identify the parties and beneficial owners in their transactions and cooperate with the authorities.
• Real estate agents, casinos, jewelers and goods traders: They must identify customers in relevant transactions and report cash payments over 15,000 euros.
• Anyone carrying 10,000 euros or more into or out of Spain: They must declare cash movements above the set thresholds.

Words worth knowing

Blanqueo de capitales (money laundering)

Giving legal-looking origin to money that comes from a crime.

Diligencia debida (due diligence)

The checks a business must run on its customer before and during the relationship: who they are, where their money comes from and what they do.

Titular real (beneficial owner)

The natural person who ultimately owns or controls a company or a transaction, even if someone else is listed.

Servicio Ejecutivo de la Comisión

The office that receives and analyzes reports on suspicious transactions and supervises compliance.

Intervención de medios de pago (seizure of payment instruments)

Temporary seizure by officials of money or payment instruments that were not declared or are suspicious.

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