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Without prejudice to the rest of the obligations established by Law 10/2010 of 28 April on the prevention of money laundering and terrorist financing and with the exceptions established by its Regulations, approved by Royal Decree 304/2014 of 5 May, obliged subjects must apply the following measures on internal control.
Policies and procedures
Obliged subjects must adopt in writing and implement adequate policies and procedures of customer due diligence, information, record keeping, internal control, risk assessment and management, compliance ensuring, reporting and customer acceptance in order to prevent and forestall transactions related to money laundering or terrorist financing.
Insurance brokers and obliged subjects listed in article 2.1 (i) to (u), both inclusive, of Law 10/2010 of 28 April that, including agents, employ fewer than 10 persons and whose annual turnover or total annual balance does not exceed EUR 2 million, will be exempted from this obligation, this exception is not applicable in the event of exceeding one of the two criteria, business volume or annual balance sheet. This exception does not apply to obliged subjects who are part of a business group that exceeds these figures.
Representative to Sepblac
Obliged subjects must appoint a director or senior manager residing in Spain to act as a representative to Sepblac. The representative to Sepblac shall be responsible for the fulfilment of the reporting obligations set out in Law 10/2010 of 28 April.
Obliged subjects carrying out activities in Spain through agents or ways of establishment other than branches must appoint a representative residing in Spain who shall be considered central contact point.
Obliged subjects carrying out activities in Spain through the provision of services without a permanent establishment must appoint a representative to Sepblac who may be non-resident in Spain.
In groups integrating several obliged subjects, the representative shall be unique and hold an administration or management position in the parent company of the group.
In the case of individual entrepreneurs or professionals, the owner of the business shall act as representative to Sepblac.
The representative to Sepblac may also appoint up to two authorized persons who will act under its direction and responsibility.
The proposal of appointment of the representative and, where appropriate, of those authorized, accompanied by a detailed description of their professional background, shall be sent to Sepblac, which may make grounded objections or observations.
Insurance brokers and obliged subjects listed in article 2.1 (i) to (u), both inclusive, of Law 10/2010 of 28 April that, including agents, employ fewer than 10 persons and whose annual turnover or total annual balance does not exceed EUR 2 million, will be exempted from the obligation of appointing a representative to Sepblac. This exception does not apply to obliged subjects who are part of a business group that exceeds these figures.
Internal Compliance Committee
Obliged subjects shall establish an Internal Compliance Committee (ICC) consisting of representatives from the different business areas of the obliged subject that will be responsible for implementing the policies and procedures on the prevention of money laundering and terrorist financing.
Insurance brokers and obliged subjects listed in article 2.1 (i) to (u), both inclusive, of Law 10/2010 of 28 April that, including agents, employ fewer than 50 persons and whose annual turnover or total annual balance does not exceed EUR 10 million, will be exempted from the obligation of establishing an ICC. In such a case, the representative to Sepblac shall exercise the functions by the ICC. This exception does not apply to obliged subjects who are part of a business group that exceeds these figures.
Technical unit
Obliged subjects whose annual turnover exceeds EUR 50 million or whose total annual balance exceeds EUR 43 million shall also establish a technical unit for data processing and analysis.
The technical unit shall include experts, on a full-time basis and with appropriate training.
Prevention manual
Obliged subjects must adopt an appropriate manual for the prevention of money laundering and terrorist financing, which shall be kept up to date, with complete information on the internal control measures. The manual must be available to Sepblac for the performance of its supervisory and inspection duties
Insurance brokers and obliged subjects listed in article 2.1 (i) to (u), both inclusive, of Law 10/2010 of 28 April that, including agents, employ fewer than 10 persons and whose annual turnover or total annual balance does not exceed EUR 2 million, will be exempted from this obligation. This exception does not apply to obliged subjects who are part of a business group that exceeds these figures.
External examination
The internal controls adopted by obliged subjects shall be subject to an annual examination by an external expert. The results of the examination shall be documented in a report detailing the internal control measures in place, assessing their operational efficiency and, eventually proposing changes or improvements as required.
However, in the two years following the issue of this report, it may be replaced by a monitoring report issued by the external expert, dealing only with the appropriateness of the measures taken by obliged person to remedy the deficiencies detected.
Individual professionals or entrepreneurs, insurance brokers and obliged subjects listed in article 2.1 (i) to (u), both inclusive, of Law 10/2010 of 28 April that, including agents, employ fewer than 10 persons and whose annual turnover or total annual balance does not exceed EUR 2 million, will be exempted from this obligation. This exception does not apply to obliged subjects who are part of a business group that exceeds these figures.
Employee training
Obliged subjects shall take appropriate measures to ensure that their employees are aware of the requirements of Law 10/2010 of 28 April. For this purpose, obliged subjects shall approve an annual training plan in prevention of money laundering and terrorist financing in accordance with article 39 of the Regulation of Law 10/2010 of 28 April.
Insurance brokers and obliged subjects listed in article 2.1 (i) to (u), both inclusive, of Law 10/2010 of 28 April that, including agents, employ fewer than 10 persons and whose annual turnover or total annual balance does not exceed EUR 2 million, will be exempted from this obligation. However, in such a case obliged subjects shall accredit that the representative to Sepblac has received appropriate external training for the exercise of their functions. This exception does not apply to obliged subjects who are part of a business group that exceeds these figures.
