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 robust 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 anti-money laundering measures in response to EU directives and has seen an increase in corruption investigations and prosecutions, particularly among public officials and well-connected business executives. Despite a slight decline in its Transparency International ranking, Spain remains committed to addressing corruption through various international conventions and ongoing legislative improvements.

Spain is currently one of the fastest-growing economies in the EU, driven by a post-COVID-19 recovery plan that emphasizes modernization and a green and digital transformation. With a projected GDP growth of 1.9 percent in 2024 and 2.1 percent in 2025, Spain's economy benefits from strong fundamentals and significant foreign investment, particularly in sectors like energy and real estate. Despite a high unemployment rate of 11.8 percent in 2023, the country has seen improvements in job creation, with one out of three new jobs in the EU being created in Spain.

Spain is actively promoting foreign investment as part of its post-COVID-19 recovery plan, leveraging nearly 150 billion euros in Next Generation EU funds to modernize its economy and enhance its green and digital transformation. The country allows up to 100 percent foreign ownership in most sectors, with significant foreign direct investment flows, particularly from the United States, which accounted for $8.78 billion in 2023. Despite some challenges for small and medium-sized enterprises in accessing credit, Spain's favorable legal framework and strong infrastructure make it an attractive destination for foreign investors.