Money laundering

It is well known by all that, both in the traditional system and even more in the crypto ecosystem, the regulatory compliance on Money Laundering and Terrorist Financing (AML/CFT and TF) is being closely monitored with increasingly advanced tools and strong penalties that worry entrepreneurs, since incurring in this type of crime can have consequences as serious as prison sentences.

Money laundering

It has recently been incorporated into
Law 10/2010 of April 28, 2010 on certain measures for the Prevention of Money Laundering and Terrorist Financing.
the third Directive in this area. This Law mainly imposes administrative reporting and cooperation obligations on regulated entities that carry out professional or business activities that could be used for money laundering. In order to comply, a series of prevention protocols have been established that businessmen must have in place to avoid being accused of committing crimes related to PBC and FT.

One of the measures that has been created is the
registration of suppliers of virtual currency exchange services for fiat currency and custody of electronic purses (second additional provision of the LPBC) with the Bank of Spain, which must be carried out before starting the activity subject to this obligation.
(second additional provision of the LPBC) with the Bank of Spain, which must be carried out before starting the activity subject to this obligation.

1. Who must perform the registration?

In accordance with the provisions of the second additional provision of the LPBC, the following must be registered:

Individuals and legal entities that offer or provide in Spain services of exchange of virtual currency for fiat currency; and custody services of electronic wallets (regardless of the nationality of the individual or legal entity).
Individuals who provide services of exchange of virtual currency for fiat currency and custody services of electronic purses; when the base, direction or management of such activities is located in Spain. (Regardless of the location of the recipients of the service).
Legal entities established in Spain that provide services of exchange of virtual currency for fiat currency and custody services of electronic wallets (regardless of the location of the recipients).

*The obligation to register in this registry is independent of the need to register in other administrative registries at the Bank of Spain or other competent authorities.

Our cryptocurrency advisors at MODO CRIPTO can help you meet these obligations, we take care of the following:

2. Adaptation and initial support

Support in processing the registration of virtual currency for fiat currency exchange and electronic purse custody service providers (BDE).
Company Risk Assessment Report

Details: The Risk analysis is a document in which the regulated entities must evaluate their risk of Money Laundering and Terrorist Financing and, based on the analysis carried out, base their internal control procedures in this area. It should be a practical document adapted to the particularities of the entity. This analysis, which will be available to SEPBLAC, should be reviewed periodically.

Forms for the application of due diligence measures (simplified, normal and enhanced).
Customized PBC and FT Procedures Manual. Contents of the Manual: measures and procedures to be applied by partners for initial compliance with the regulations.
Support and initial follow-up for the correct basic adaptation of the obligated subject to the regulations:

Appointment of the Representative before SEPBLAC

Appointment of the Representative before SEPBLAC on an alternate basis.

✓ Establishment of the Internal Control Organ

✓ Basic issues to apply within the company for regulatory compliance.

Solution of doubts that may arise during the development of the basic adaptation, as well as all the support required during the implementation process. This support, if the “Supervision, follow-up and support” fee is not contracted, will have a duration of 1 calendar month from the end of the implementation process.

A training session of 30-60 minutes in on-line mode and delivery of a certificate.

At MODO CRIPTO we offer crime prevention programs to ensure that you always act in accordance with the law. This avoids the potential reputational damage that would result from a criminal conviction and criminal prosecution of the entrepreneurs.