Regulatory Alerts2010-03-24
Added · Updated
Royal Decree approving the CBFA Regulation of 23 February 2010 on the prevention of money laundering and terrorist financing
The Royal Decree of 16 March 2010 approves the Commission for the Banking, Finance and Insurance Sector (CBFA) Regulation of 23 February 2010 regarding the prevention of money laundering and terrorist financing, while repealing the previous Royal Decree of 8 October 2004. The regulation establishes definitions for key terms such as 'business relationship', 'beneficial owner', and 'atypical transaction', and mandates that covered entities perform customer due diligence before establishing business relationships or executing occasional transactions. It permits identity verification during the establishment of a relationship only under specific low-risk conditions enumerated in internal procedures.