25 Oct

New requirements regarding the Prevention of Money Laundering: New Registry of trust or company service providers

Bernardo Martínez | money laundering, prevention of money laundering

This post belongs to a series of information from AEDAF.  Royal Decree-Law 11/2018 of August 31 transposing the European Union Directive on the prevention of money laundering was published in the Official Gazette on September 4.

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The most noteworthy new provisions included in Law 10/2010 of April 28 on the prevention of money laundering and terrorist financing are: the new requirement imposed on natural and legal persons rendering specific services to be registered in the Commercial Registry and to report relevant information. This new requirement is governed by the Single Additional Provision of Law 10/2010 of April 28 entitled “Registry of trust or company service providers".

With regard to the requirement for company service providers to be registered, the actual news is that natural persons, acting as business owners and professionals, rendering any of the services listed below, must be registered with the Commercial Registry. According to current regulations, however, any legal persons —regardless of their business— must meet the registry obligations laid down in Royal Decree 1784/1996 of July 19, approving the Regulation of the Commercial Registry.

Who is required to register?

Any natural or legal persons rendering any of the services provided for under article 2.1. o) of the Law to third parties. The services affected are:

• Forming companies or other legal persons;

• Acting as or arranging for another person to act as a director or secretary of a company, a partner of a partnership, or a similar position in relation to other legal persons;

• Providing a registered office, business address, correspondence or administrative address and other related services for a company, a partnership or any other legal person or arrangement;

• Acting as or arranging for another person to act as a trustee of an express trust or a similar legal arrangement;

• Acting as or arranging for another person to act as a nominee shareholder for another person other than a company listed on a regulated market that is subject to disclosure requirements in conformity with Community legislation or subject to equivalent international standards;

How is registration completed?

Individual business owners and legal persons, unless a specific rule applies, shall be registered according to the provisions of the Regulation of the Commercial Registry. Individual professionals shall register using an electronic form approved by an Order of the Ministry of Justice, which has not been approved yet. 

Is there a deadline for registration?

Any persons carrying out such business activities prior to the effective date of this new requirement (September 4, 2018) who are not registered must register within one year.

Any persons who were already registered must file a declaration with the Registry stating that they are subject to the rules provided for under this Law.

New requirement to report certain specific information

- Regarding legal persons and natural persons acting as business owners, they shall file every year, together with their annual financial statements, a document including the following information: the types of services rendered, the territory where they operate, services rendered to non-residents, amount invoiced per service or number of transactions completed and change of beneficial owner, if any.

- Individual professionals shall file this information electronically within the three first months of the year, using the form approved for such purpose.ew requirements regarding the Prevention of Money Laundering: New Registry of trust or company service providers

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