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. The government has strengthened its anti-money laundering measures to align with EU directives, resulting in increased scrutiny and prosecution of corruption cases, particularly involving public officials. Despite a slight decline in its Transparency International ranking, Spain continues to make progress in addressing corruption, with U.S. firms generally not viewing it as a significant barrier to investment.

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% in 2024 and 2.1% in 2025, Spain's economy benefits from significant foreign investment, particularly in sectors like energy and real estate, despite facing challenges such as high unemployment and public debt.

Spain's investment climate is highly favorable for foreign investors, characterized by a legal framework that allows up to 100 percent foreign ownership in most sectors and completely liberalized capital movements. In 2023, foreign direct investment flows into Spain reached $30.4 billion, with significant contributions from the United States, particularly in sectors such as energy, real estate, and financial services. The country is actively utilizing nearly 150 billion euros in Next Generation EU recovery funds to modernize its economy and promote sustainable growth, making it an attractive destination for investment.