How do I know if I am an obligated subject?

NeoCheck’s objective is creating solutions that can make our clients’ lives easier and at the same time comply with the law. One of the regulations that affect our clients is money laundering prevention and terrorist financing. According to this law certain persons (obligated subjects) have an obligation to inform the Executive Service of the Commission for the Prevention of Money Laundering and Monetary Offenses in Spain (SEPBLAC).

Who are the obligated subjects?

The real question before anything else is to determine if your company or your person, by its activity falls within this law. Many companies doubt, since the regulations cover a large number of activities. Normally those that are usually clear are:

• Banks and credit institutions
• Credit cooperatives
• Pension fund managers
• Investment funds
• Insurance companies
• Notaries

But article two of the law includes others that are less clear, such as:

• Property developers
• Tax advisors
• Real Estate Agents (API)
• Attorneys involved in real estate sales
• Account auditors
• Exchange houses
• Jewelers or individuals who trade jewelry, stones or precious metals
• Casinos or other games of chance (face-to-face or electronic)
• Art or antique dealers

The case of jewelry stores is also specially investigated by the Commission for the Prevention of Money Laundering and Monetary Offenses (CPBCIM), since real cases of money laundering have been detected through the cash payment of high-end watches and other items of great value. Later they are resold outside our borders.

The NOT obliged subjects

One of the most common doubts that Sepblac receives is whether or not Lottery Administrations are obligated subjects. The answer is no, since the obligation falls on the public business entity Sociedad Estatal de Loterías y Apuestas del Estado.

But what about telephone booths? These are frequently used by immigrants to send money to their countries of origin, however, they are not considered obligated subjects. Why? Because the obligation would fall on the payment entity.

Let’s talk now about Car Dealerships or other means of transportation, since despite not being obligated subjects if there are circumstances that force them to communicate with SEPBLAC. Such as the sale and purchase of a vehicle both financed and when there are cash payments of more than € 15,000. However, the subsequent Anti-Fraud Law of 2012 greatly simplified things for dealers, since it prohibited the payment in cash with an amount equal to or greater than 2,500 euros.

What obligations does an obligated subject have?

But what exactly means being an obligated subjects. What do we have to do? The answer is not easy, since there are many obligations of the subjects:

• Register with Sepblac and appoint a representative before it.
• Communicate to Sepblac operations with indications of being related to money laundering or terrorist financing.
• Apply measures with your clients.
• Training your staff in anti-money laundering prevention.
• External annual examination.
• Other procedures and documentation required by Sepblac.

NeoCheck has created a cutting-edge solutions that allows yourself or your company to carry out its activity and effectively comply with all the international regulatory requirements Anti Money Laundering (AML) and Know Your Customer (KYC).

NeoCheck AML platform allows you to prevent, detect and investigate suspicious activity using an API or an application. Facilitating regulatory compliance with the Anti-Money Laundering Law and against the Financing of Terrorism. Our Control Lists are constantly updated and revised to immediately include any new anti-money laundering regulations.

We have also created a solution for non-face-to-face onboarding processes. NeoCheck Onboarding KYC complies with the authorizations for in-person identification procedures issued by SEPBLAC and AML.