Spain

1. Does Spain have legislation making it a criminal offence to engage in money laundering and/or terrorist financing?

Yes. Article 301 of the Spanish Criminal Code criminalises the offence of money laundering. Legal entities can be criminally liable for money laundering offenses as per article 31 bis of the Spanish Criminal Code.

2. To whom does the legislation apply?

Natural and legal persons.

3. What does the legislation prohibit?

To acquire, possess, use, convert, or transmit assets, knowing that these have their origin in a criminal activity, committed by anyone or to perform any other act to conceal or cover up their illicit origin, or to help the person who has participated in the infraction or infractions to evade the legal consequences of his/her acts.

4. How is money laundering defined? Does underlying criminal activity have to be proven?

Money laundering under the Spanish Criminal Code is defined as: acquiring, possessing, using, converting, or transmitting assets, knowing that these have their origin in a criminal activity, committed by anyone or performing of any other act to conceal or cover up their illicit origin, or helping the person who has participated in the infraction or infractions to evade the legal consequences of his/her acts.

The underlying activity does not need to be proven.

5. What level of intent or knowledge is required to establish a violation?

The offence can be committed negligently.

6. What are the potential penalties for infringing the legislation?

Imprisonment from six months to six years.

Fines of up to three times the value of the assets.

Disqualification from exercising a profession or operating in a certain industry for a period of one to three years.

Temporary or definitive closure of the establishment or premises. If the closure is temporary, its duration may not exceed five years.

7. Does the legislation have extra-territorial reach?

No.

8. Are there additional anti-money laundering or counter terrorist financing regulations or obligations, such as registration or reporting obligations, for businesses or individuals that operate in particular sectors or undertake particular activities?

Yes. Law 10/2010, of April 28, 2010, on the prevention of money laundering and financing of terrorism (“Law 10/2010”) establishes registration or reporting obligations for businesses and individuals that operate in particular sectors or undertake particular activities. The Law 10/2010 establishes administrative infractions and sanctions.

The reports have to be made to the SEPBLAC (Supervisory Authority of the Spanish National Bank).

9. What are the potential penalties for failing to comply with these obligations?

The potential penalties are:

• fines;
• private warnings;
• a public warning;
• removal from office, with temporary disqualification from holding administrative or management positions in any entity subject to the Law 10/2010; and/or
• suspension of administrative authorisation to operate.

10. Who are the relevant enforcement authorities in Spain and what are their contact details?

Criminal money laundering offences defined in the Spanish Criminal Code are processed before the Spanish Criminal Courts. These courts have powers to enforce criminal penalties.

The Money Laundering and Monetary Violations Commission prosecutes violations of the Law 10/2010 and has powers to enforce the sanctions prescribed in such.

Normally the claims are filed into the Courts by the SEPBLAC.

Sepblac, as Supervisory Authority, has the mission of ensuring compliance by obliged subject with respect to their duties in order to prevent money laundering and terrorist financing.

In accordance with the best international practices, Sepblac exercises its supervisory functions according to a risk-based approach (RBA), so that the supervisory cycle is more intense with respect to those sectors of activity and obliged subjects with a higher risk of money laundering and terrorist financing.

In determining the supervisory risk, Sepblac relies on its operational and strategic analysis. According to the Financial Action Task Force (FATF), “as the Main AML/CFT supervisor, Sepblac takes a highly sophisticated risk-based approach to supervision across different sectors and within each sector”.

In the exercise of its supervisory functions, Sepblac applies the Guidelines by the European Supervisory Authorities.

Sepblac, once suspicious transactions reports are received from obliged subjects, analyses several information sources and, in those cases in which signs or certainty of money laundering or terrorist financing are detected, produces financial intelligence reports.

In addition, Sepblac performs strategic analysis functions to identify patterns, trends and typologies on money laundering or terrorist financing.

All the information received, processed, maintained or disseminated by Sepblac is suitably protected. Policies in order to ensure its security and confidentiality, including proper procedures for its handling, filing, dissemination, protection and access have been adopted.

The Spanish financial intelligence system has received the highest international rating. The Mutual Evaluation Report by the Financial Action Task Force (FATF) points out as one of its “key findings” that “Spain has a well-functioning FIU (Sepblac) which produces high quality operational and strategic analyses”.

Contact details:

C/Alcala 48

28014 Madrid

T: +34 913 388 808