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 against bribery and financial malfeasance. The government has strengthened its anti-money laundering measures to align with EU directives, and the prosecution of corruption cases is actively pursued, with notable cases involving both public officials and private executives. Despite a slight decline in its Transparency International ranking, Spain continues to make progress in addressing corruption, with increased investigations and prosecutions reflecting a commitment to improving governance and transparency.

Spain is one of the fastest-growing economies in the EU, actively attracting foreign investment while implementing a post-COVID-19 recovery plan focused on modernization and green transformation. In 2023, Spain led GDP growth among major EU economies, supported by nearly 150 billion euros in recovery funds, although it still faces challenges such as high unemployment and public debt. The country has a favorable investment climate, with significant foreign direct investment flows, particularly in sectors like energy and real estate.

Spain's investment climate is highly favorable, characterized by an open approach to foreign direct investment (FDI) and a legal framework that allows for up to 100 percent foreign ownership in most sectors. In 2023, Spain attracted $30.4 billion in new FDI, with significant contributions from the United States, particularly in energy, real estate, and financial services. The country benefits from a well-educated workforce, excellent infrastructure, and access to the European Single Market, making it an attractive destination for foreign investors.