Spain Country Summary

FATF Status

Spain is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Spain was undertaken in 2019. According to that Evaluation, Spain was deemed Compliant for 28 and Largely Compliant for 10 of the FATF 40 Recommendations. It was also deemed Highly Effective for 1 and Substantially Effective for 9 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Spain has established a comprehensive legal framework to combat corruption, including civil and criminal sanctions for bribery and financial malfeasance, with significant penalties for corporations involved in illegal financing. The government has strengthened its anti-money laundering measures to comply with EU regulations and has made progress in enforcing anti-corruption laws, although challenges remain, particularly in addressing foreign bribery. Additionally, Spain faces issues with various forms of organized crime, including human trafficking, drug trade, and cybercrime, while efforts to combat these crimes are supported by both government and civil society.

Spain is currently one of the fastest-growing economies in the EU, actively attracting foreign investment while implementing a post-COVID-19 recovery plan aimed at modernizing its economy and promoting green and digital transformations. With a projected GDP growth of 1.9 percent in 2024 and 2.1 percent in 2025, Spain's economy is bolstered by nearly 150 billion euros in recovery funds, although it still faces challenges such as high unemployment and public debt.

Spain's investment climate is highly favorable, characterized by a stable legal framework that allows for up to 100 percent foreign ownership in most sectors and complete liberalization of capital movements. In 2023, foreign direct investment flows into Spain reached $30.4 billion, with significant contributions from the United States, particularly in sectors like energy and real estate. The country is actively leveraging nearly 150 billion euros in Next Generation EU recovery funds to modernize its economy and promote sustainable growth.