What is the Prevention of Money Laundering?
The prevention of money laundering refers to all measures designed to prevent money laundering, a mechanism used by criminals to disguise the illicit origin of their wealth by introducing it into the legal circulation of money.
This process is intended to give the illicitly obtained money a legal appearance, hiding both the provenance of the money and the identity of the true owners of the funds.
This process is intended to give the illicitly obtained money a legal appearance
by hiding both the source of the money and the identity of the real owners of the funds.
by hiding both the origin of the money and the identity of the real owners of the funds.
Anti-Money Laundering Law 10/2010
In Spain, Law 10/2010 of 28 April establishes regulations for the **prevention of money laundering** and **terrorist financing**, transposing a European directive. This law aims to legalize the functioning of the Spanish financial system and other economic operators, preventing their use in illicit activities.
Key Changes Introduced by the Law
- Service Providers Registry: Requires service providers to companies and trusts to register.
- Sanctions: Sets the maximum amount for sanctions due to non-compliance with prevention obligations, increasing maximum penalties while maintaining minimum amounts.
- Document Retention: Imposes the obligation to retain documents that prove compliance with the law for a period of ten years.
- Whistleblowing Systems: Mandates the establishment of both public and private whistleblowing systems.
- Uniform Application: Standardizes the regime for applying enhanced due diligence measures to all politically exposed persons, both national and foreign.