Explanatory Note on Measures Adopted by Financial Institutions Regarding Denials and the Application of Restrictive Measures in Relation to Accounts, Services, or Payment Products for Reasons of Anti-Money Laundering or Counter-Terrorist Financing Prevention
Financial institutions are obliged entities under the regulations on prevention of money laundering and terrorist financing—primarily contained in Law 10/2010 of April 28 and its implementing regulation approved by Royal Decree 304/2014 of May 5. Therefore, they must apply appropriate customer due diligence measures based on risk, for which they will request the necessary information. These measures include, among others, identifying and knowing the customer, as well as understanding the purpose and monitoring of the business relationship. In cases where they cannot adequately apply the due diligence measures established in Law 10/2010 of April 28, financial institutions will not execute transactions, nor establish business relationships with the customer, or will terminate an existing relationship (see more information in the Compendium of Good Banking Practises Criteria published by the Bank of Spain, particularly in section “2. Identification Obligations and Restrictive Measures under Anti-Money Laundering and Counter-Terrorist Financing Regulations” (pages 45 to 47) and in “Box 1.1. Common Good Practice Criteria Bank of Spain-Sepblac on Denials of Access and Application of Restrictive Measures Regarding Payment Products and Services for Reasons of Anti-Money Laundering or Counter-Terrorist Financing Prevention”).
The information contained in the files created and managed by Sepblac for the fulfillment of the functions assigned to it by Law 10/2010 of April 28 is treated as confidential and is classified as restricted. Therefore, under no circumstances is information about individual clients provided to financial institutions, meaning that Sepblac is not involved in decisions that financial institutions may make when denying the opening or contracting of accounts or products, blocking them, or proceeding, where applicable, to their cancellation in accordance with their customer admission policies, risk management, or compliance with their obligations under the regulations on prevention of money laundering and terrorist financing.