Anti Money Laundering (AML) in Spain

Money laundering in Spain is an ongoing problem, with the largest source of laundered funds in the country resulting from terrorist financing and organized crime.

The Government of Spain (GOS) remains committed to combating narcotics trafficking, terrorism, and financial crimes, and continues to work to tighten financial controls. The criminalization of money laundering was added to the penal code in 1988 when laundering the proceeds from narcotics trafficking was made a criminal offense. In 1995, the law was expanded to cover all serious crimes that require a prison sentence greater than three years. Amendments to the code on November 25, 2003 made all forms of money laundering financial crimes. The penal code can also apply to individuals in financial firms if their institutions have been used for financial crimes. An amendment to the penal code in 1991 made such persons culpable for both fraudulent acts and negligence connected with money laundering.

In December 1993, specific measures to prevent money laundering were adopted to regulate the legal entities in the financial sector and individuals moving large sums of cash (Law 19/1993). The regulations for enactment were established by Royal Decree 925/1995, which set the standards for regulating the financial system. The regulations were amended in January 2005 by Royal Decree 54/2005. Pursuant to these laws and regulations, the financial sector is required to identify customers, keep records of transactions, and report suspicious financial transactions. Spanish banks are required by law to maintain fiscal information for five years and mercantile records for six years.

The money laundering law applies to most entities active in the financial system, including banks, mutual savings associations, credit companies, insurance companies, financial advisers, brokerage and securities firms, postal services, currency exchange outlets, casinos, and individuals and unofficial financial institutions exchanging or transmitting money (alternative remittance systems). The 2003 amendments added lawyers and notaries as covered entities.

The Commission for the Prevention of Money Laundering and Financial Crimes (CPBC) coordinates the fight against money laundering in Spain. The Secretary of State for Economy heads the commission and all of the agencies involved in the prevention of money laundering participate. Agencies represented include the National Drug Plan Office, the Ministry of Economy, the Public Prosecutor’s Office (Fiscalia), Customs, the Spanish National Police, the Guardia Civil, the National Stock Market Committee, the Treasury, the Bank of Spain, and the Director General of Insurance and Pension Funds. Any member of the Commission may request an investigation.

The Economy of Spain

The Spanish economy boomed from 1986 to 1990, averaging 5% annual growth. After a Europe-wide recession in the early 1990s, the Spanish economy resumed moderate growth starting in 1994.

The Socialist president Rodriguez Zapatero, made mixed progress in carrying out key structural reforms, which need to be accelerated and deepened to sustain Spain's economic growth.

Despite the economy's relatively solid footing, significant downside risks remain including Spain's continued loss of competitiveness, the potential for a housing market collapse, the country's changing demographic profile, and a decline in EU structural funds.

Banking In Spain

Banco de Espana is the central bank of Spain and a member of the European Central Bank (ECB). The central bank also serves as the banking regulator in Spain.

Spanish Currency

The currency in Spain is the Euro, which serves as the currency of the 15 members of the European Central Bank. The states that have adopted the Euro as its currency make up the Eurozone. These countries are: Austria, Belgium, Cyprus, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain. The Euro is the single currency for more than 320 million Europeans.

The Euro was first phased into the global economy in 19999. In the beginning, participating countries had to combat the use of both Euros and former national currencies. Beginning in 2002 national currencies were withdrawn.

The Euro comes in both banknotes and coins. Banknotes are available in 5, 10, 20, 50, 100, 200 and 500 denominations. Coins are available in 1, 2, 5, 10, 20, 50 cent pieces, and 1 and 2 Euro coins.

Other Key Statistics of Spain

Time Zone: UTC+1 (6 hours ahead of Washington, DC during Standard Time). Daylight Saving time: +1hr, begins last Sunday in March; ends last Sunday in October .

Location: Southwestern Europe, bordering the Bay of Biscay, Mediterranean Sea, North Atlantic Ocean, and Pyrenees Mountains, southwest of France.

Population: 47.27 million (2012 est.)

Labor Force: Approximately 3.5% work in agriculture, 29.8% in industry and 66.6% in services industries. The unemployment rate is 8.3%.

Languages Spoken: Castilian Spanish (official) 74%, Catalan 17%, Galician 7%, Basque 2%.

Trade Organizations: Spain is a member of the World Trade Organization (WTO).

Anti Money Laundering (AML) in Colombia

While Colombia is not a regional financial center, the banking sector is mature and well regulated. Comprehensive AML regulations, as well as international cooperation on AML organizations, have allowed the government to refine and improve its ability to combat financial crimes and money laundering. Law 526 of 1999 established Colombia’s Financial Intelligence Unit (FIU), the Financial Information and Analysis Unit (Unidad de Información y Análisis Financiero or UIAF). However, money laundering is still a problem, and the UIAF has identified more than 44 techniques for laundering money.

Financial institutions are required by law to maintain records of account holders and financial transactions for five years. Secrecy laws have not been an impediment to bank cooperation with law enforcement officials, since under Colombian law there is a legal exemption to client confidentiality when a financial institution suspects money laundering activity. General negligence laws and criminal fraud provisions ensure the financial sector complies with its responsibilities while protecting consumer rights. Obligated entities are supervised by the Financial Superintendent. In June 2008, the Financial Superintendent issued a circular effective October 2008, further tightening financial reporting requirements for the financial, insurance and securities sectors with strict deadlines for submitting regular transaction reports.

The Economy of Colombia

Colombia’s economy experienced significant growth from 2002 until 2007, chiefly due to rising commodity prices, advancements in domestic security, and President Uribe’s premarket economic policies. Recently, Colombia has witnessed record levels of foreign investment.

Inequality, underemployment and drug trafficking remain significant challenges to the Colombian economy. Although economic growth faltered in 2008, resulting from the global financial crisis and a weakening demand for Colombian exports, the United States and Venezuela remain Colombia’s largest trading partners.

Banking in Colombia

Banco de la República is the Central Bank of Colombia, charged with the tasks of issuing and administering Colombia’s legal currency. Colombia’s Central Bank also control’s the country’s monetary, credit and foreign exchange systems.

The primary responsibilities of Colombia’s Central Bank include acting as the government’s bank, controlling the issuing of legal tender, receiving allocations of credit and providing loans to the government and commercial banks, directing and managing Colombia’s financial and monetary policy, and carrying out currency transfers with other countries.

Colombia’s Central Bank also works to promote scientific, social and cultural development within Colombia through the creation of financially funded foundations focused on technology, anthropology and many other educational and cultural fields.

Colombia's Currency

The currency of Colombia is the Peso. It originally replaced the Real in 1837 at a rate of 1 peso to 8 reales. Since then, the Peso has been pegged in value to a number of other currencies, including the French Franc in 1871, at a rate of 1 peso to 5 francs, the British Pound in 1907, at a rate of 5 pesos to 1 pound, and most recently, the U.S. Dollar in 1931, at a rate of 1.05 pesos to 1 dollar.

The peso comes in both banknotes and coins. Coins are currently available in 20, 50, 100, 200, and 500 cent pieces. Banknotes are available in 1,000, 2,000, 5,000, 10,000, 20,000, and 50,000 denominations. A 100,000 banknote is slated to be released.

Other Key Statistics of Colombia

Time Zone: UTC-5 (same time as Washington, DC during Standard Time).

Location: Northern South America, bordering the Caribbean Sea, between Panama and Venezuela, and bordering the North Pacific Ocean, between Ecuador and Panama.

Population: 45,644,023 (July 2009 est.).

Labor Force: Approximately 22.4% work in agriculture, 18.8% in industry and 58.8% in services industries. The unemployment rate is 11.8%.

Languages Spoken: Spanish.

Trade Organizations: Colombia is a member of the United Nations (UN) and the World Trade Organization (WTO).

Anti Money Laundering (AML) in Denmark

The Kingdom of Denmark consists of three jurisdictions (Denmark, Greenland, and the Faroe Islands), each with a different set of laws relevant to AML/CFT. The new Measures to Prevent Money Laundering and Terrorist Financing (MLA) has not been extended beyond Denmark proper. The Danish government is working with the Home Rule Governments of Greenland and Faroe Islands to update various aspects of their AML/CFT regimes, permit the extension of the Vienna, Palermo, and Terrorist Financing conventions, and ensure full implementation of UN Security Council resolutions.

Finanstilsynet, the Danish Financial Supervisory Authority (FSA), upholds financial regulations in Denmark. Any institution not overseen by the Danish FSA has to register with and send reports to the Public Prosecutor for Serious Economic Crime.

AML Training in Denmark

Denmark's Criminal Code requires all financial institutions to establish appropriate training programs to combat money laundering and terrorist financing activities within the country.

Economy of Denmark

Recently, the Danish economy has undergone strong expansion stimulated by private consumption growth, exports, and investments. Denmark has successfully modernized its market economy over the last several years, which now features high-tech agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, comfortable living standards, a stable currency, and high dependence on foreign trade. The unemployment rate is low and capacity constraints are limiting growth potential.

Economic growth gained momentum in 2004 and the upturn continued through 2007.

Banking in Denmark

The National Bank of Denmark is the country’s Central Bank.

The head office of the Central Bank is located in Copenhagen. The National Bank performs all the usual functions of a central bank, and it holds almost all of the nation's foreign exchange reserves.

Derived from the National Bank of Denmark Act of 1936, the objective of the Central Bank is to maintain the following:

• Stable prices.
• Safe payments.
• A stable financial system.

Commercial banks in Denmark provide short-term money to businesses and individuals.

Danish banks suffered throughout the Nordic banking crisis of 1991-93. However, recovery stimulated by continuing capital gains in the securities markets allowed the financial industry to rebound completely.

Currency in Denmark

The Danish Krone (DKK) is the official currency of Denmark. The DKK was first established in 1873, and krone literally translates to “crown” in English. Denmark has decided not to join 15 other European Union (EU) members in adopting the Euro. Nonetheless, the Danish krone remains linked to the Euro.

The krone can be subdivided into 100 ore. Denominations for coins are 25 and 50 ore, and 1, 2, 5, 10 and 20 kroners. Denominations for notes are 50, 100, 200, 500 and 1,000 kroners.

According to the Prime Minister of Denmark, the country will vote about the Danish Euro introduction sometime in 2008.

Other Key Statistics of Denmark

Time Zone: UTC+1 (6 hours ahead of Washington, DC during Standard Time).

Daylight Saving Time: +1hr, begins last Sunday in March; ends last Sunday in October. note: applies to continental Denmark only, not to the North Atlantic components.

Location: Northern Europe, bordering the Baltic Sea and the North Sea, on a peninsula north of Germany (Jutland); also includes two major islands (Sjaelland and Fyn).

Population: 5.614 Million (2013 est.).

Labor Force: Approximately 3% work in agriculture, 21% in industry and 76% in services industries. The unemployment rate is 2.8%.

Languages Spoken: Danish, Faroese, Greenlandic (an Inuit dialect), German (small minority) note: English is the predominant second language.

Trade Organizations: Denmark is a member of the European Union (EU) and the United Nations (UN).