Services

Prevention of Money Laundering

Spain, in line with its counterparts in the European Union, has stringent rules and regulations on the prevention of money laundering. These regulations have extended the scope of the law on this matter so that it affects a greater number of activities and professions.

 Our team of experts has long experience in the prevention of money laundering which allow us to carry out an in-depth revision of your company  adding value to the directors and executives with recommendations oriented to comply with the law minimizing the investment on the measures requested to implement good internal controls.

 

UHY Fay & Co offers the following services for the prevention of money laundering:

 

 ¿What is Money Laundering?

According to the legal definition, Money Laundering refers to the acquisition, use, conversion or transmission of goods that are the result of the perpetration of a criminal activity or participation in acriminal activity that is punishable with over three years imprisonment.

 It also encompasses attempts to conceal or cover up the source of the crime or aid participants in the crime to avoid the legal consequences, and includes the concealment or covering up of the true nature of the crime, along with the source, location and movements of ownership or rights of ownership, even when the activities involved originate in another country.

 

¿Which activities are subject to the obligations established by law?

  • Credit entities
  • Insurance companies – life insurance
  • Societies and Stock exchange agencies
  • Investment societies (excluding those delegated to a SGIIC – external investment society)
  • SGIIC and Retirement pension societies
  • Societies issuing credit cards
  • Individuals or Legal entities with activities related to money transfer or exchange
  • Casinos
  • Activities related to real estate promotion, comission or intermediary in the buying or selling of properties
  • Individuals or Legal entities acting as auditors, external accountants or legal advisors
  • Notaries, lawyers or attorneys (when acting in specific operations)
  • Activities related to commerce with jewels, precious stones and metals
  • Activities related to commerce of art and antiquities
  • Activities related to stamp and numismatic investments
  • Activities related to professional transport of funds or payments
  • Activities related to international credit transfer
  • Activities related to commercialization of lotery or game of chance

The SEPBLAC (Executive Service of the Commission for the Prevention of Money Laundering and Monetary Offences), attached to the Bank of Spain, is coordinating all the activities related to the investigation and prevention of money laundering and the place where all communications of doubtful operations must be sent to.

 

¿Which are the obligations of the entities subject to comply with the law?

  • Identification of the clients
  • Requesting information on clients and verifying its veracity
  • Examination of all suspicious operations
  • Conservation of documents (6 years)
  • Mandatory monthly declaration
  • Comply with providing the information requested by the Executive Service
  • Reporting of suspicious operations
  • Refusal to carry out suspicious operations without making such a report
  • Total confidentiality
  • Establishment of bodies of control and communication
  • Training of employees
  • Exemption of responsibility in relation to foreign subsidiaries