TEST PRESENTATION

1. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
1
Anti-money laundering and counter- terrorist financing measures in Spain
Fourth Round Mutual Evaluation
Key findings, ratings and priority actions
5 December 2014
www.fatf-gafi.org/topics/mutualevaluations/documents/mer-spain-2014.htm

2. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
Key findings

Spain has up-to-date laws and regulations

Spain has sound institutions for combating money laundering and the financing of terrorism

Spain has a high level of understanding of its money laundering and terrorist financing risks

Spain has demonstrated significant successes in money laundering investigation and prosecution 2

3. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
Key findings

However, the dissuasiveness and proportionality of sanctions for money laundering offences is a concern

Authorities have effectively shut down the financing and support networks of one of the main domestic terrorist threats in Spain: ETA

However, Spain’s implementation of targeted financial sanctions related to terrorism suffers from serious technical and practical deficiencies

Policy and operational coordination on combating proliferation financing is weak
3

4. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
Key findings

There are significant gaps in the applicable EU legal framework regarding wire transfers

Lawyers do not adequately apply the required preventive measures

Good practice in the context of Spain’s legal system: measures to enable access to beneficial ownership information.

Authorities and money value transfer services have taken significant steps to mitigate money laundering and terrorist financing risks, but weaknesses remain. 4

5. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
Ratings - Effectiveness 5
Immediate outcome of an effective system to combat money laundering (ML) and terrorist financing (TF)
Extent to which Spain has achieved this objective
1.
ML and TF risks are understood and, where appropriate, actions co-ordinated domestically to combat ML and TF
Substantial
2.
International co-operation delivers appropriate information, financial intelligence, and evidence, and facilitates action against criminals and their assets
Substantial
3.
Supervisors appropriately supervise, monitor and regulate financial institutions and designated non-financial businesses and professions (DNFBPs) for compliance with AML/CFT requirements commensurate with their risks.
Substantial
4.
Financial institutions and DNFBPs adequately apply AML/CFT preventive measures commensurate with their risks, and report suspicious transactions.
Moderate

6. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
6
Immediate outcome of an effective system to combat money laundering (ML) and terrorist financing (TF)
Extent to which Spain has achieved this objective
5.
Legal persons and arrangements are prevented from misuse for money laundering or terrorist financing, and information on their beneficial ownership is available to competent authorities without impediments
Substantial
6.
Financial intelligence and all other relevant information are appropriately used by competent authorities for money laundering and terrorist financing investigations.
High
7.
Money laundering offences and activities are investigated and offenders are prosecuted and subject to effective, proportionate and dissuasive sanctions
Substantial
8.
Proceeds and instrumentalities of crime are confiscated.
Substantial
Ratings - Effectiveness

7. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
7
Immediate outcome of an effective system to combat money laundering (ML) and terrorist financing (TF)
Extent to which Spain has achieved this objective
9.
Terrorist financing offences and activities are investigated and persons who finance terrorism are prosecuted and subject to effective, proportionate and dissuasive sanctions.
Substantial
10.
Terrorists, terrorist organisations and terrorist financiers are prevented from raising, moving and using funds, and from abusing the non-profit sector.
Moderate
11.
Persons and entities involved in the proliferation of weapons of mass destruction are prevented from raising, moving and using funds, consistent with the relevant United Nations Security Council Resolutions.
Moderate
Ratings - Effectiveness

8. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014 5-Dec-14 8
Ratings – Effectiveness
1
7
3
0
High
Substantial
Moderate
Low

9. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
Ratings – technical compliance 5-Dec-14 9
AML/CFT POLICIES AND COORDINATION
1. Assessing risks & applying a risk-based approach
Compliant
2. National cooperation and coordination
Largely compliant
MONEY LAUNDERING AND CONFISCATION
3. Money laundering offence
Largely compliant
4. Confiscation and provisional measures
Compliant
TERRORIST FINANCING AND FINANCING OF PROLIFERATION
5. Terrorist financing offence
Largely compliant
6. Targeted financial sanctions related to terrorism & terrorist financing
Partially compliant
7. Targeted financial sanctions related to proliferation
Partially compliant
8.Non-profit organisations
Largely compliant

10. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
Ratings – technical compliance 5-Dec-14 10
PREVENTIVE MEASURES
9. Financial institution secrecy laws
Compliant
Customer due diligence and record keeping
10. Customer due diligence
Largely compliant
11. Record keeping
Compliant
Additional measures for specific customers and activities
12. Politically exposed persons
Compliant
13. Correspondent banking
Compliant
14. Money or value transfer services
Compliant
15. New technologies
Compliant
16. Wire transfers
Partially compliant

11. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
Ratings – technical compliance 5-Dec-14 11
PREVENTIVE MEASURES (continued)
Reliance, Controls and Financial Groups
17. Reliance on third parties
Largely compliant
18. Internal controls and foreign branches and subsidiaries
Compliant
19. Higher-risk countries
Compliant
Reporting of suspicious transactions
20. Reporting of suspicious transactions
Compliant
21. Tipping-off and confidentiality
Compliant
Designated non-financial Businesses and Professions (DNFBPs)
22. DNFBPs: Customer due diligence
Largely compliant
23. DNFBPs: Other measures
Compliant

12. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014 5-Dec-14 12
TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS
24. Transparency and beneficial ownership of legal persons
Largely compliant
25. Transparency and beneficial ownership of legal arrangements
Compliant
POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES AND OTHER INSTITUTIONAL MEASURES
Regulation and Supervision
26. Regulation and supervision of financial institutions
Largely Compliant
27. Powers of supervisors.
Compliant
28. Regulation and supervision of DNFBPs
Largely compliant
Operational and Law Enforcement
29. Financial intelligence units
Compliant
30. Responsibilities of law enforcement and investigative authorities
Compliant
31. Powers of law enforcement and investigative authorities
Compliant
32. Cash couriers
Compliant
Ratings – technical compliance

13. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014 5-Dec-14 13
TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS (continued)
General Requirements
33. Statistics
Compliant
34. Guidance and feedback
Compliant
Sanctions
35. Sanctions
Compliant
INTERNATIONAL COOPERATION
36. International instruments
Compliant
37. Mutual legal assistance
Compliant
38. Mutual legal assistance: freezing and confiscation
Compliant
39. Extradition
Largely compliant
40. Other forms of international cooperation
Compliant
Ratings – technical compliance

14. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014 5-Dec-14 14
Ratings – technical compliance
25
12
3
0
Compliant
Largely compliant
Partially compliant
Non-compliant

15. Anti-money laundering and counter-terrorist financing measures in Spain – Mutual Evaluation Report – December 2014
Priority Actions for Spain to strengthen its AML/CFT System

Ensure that adequate sanctions, beyond fines, are applied for money laundering offences

Amend the Penal Code to extend the maximum period of disbarment for professionals

Apply targeted financial sanctions when appropriate

Increase resources for AML/CFT supervision

Intensify supervision of lawyers, real estate agents and trust and company service providers

Fill the gaps in supervision regarding unlicensed money value transfer services operators and those operating under passporting rules. 15