UN
The Security Council adopts sanctions under Chapter VII of the UN Charter. Its resolutions are binding on Member States.
International financial sanctions compliance in Spain
International financial sanctions (restrictive measures adopted by the EU and the UN) require you to freeze funds and not to make them available to designated persons and entities. Law 10/2010 (Art. 42) makes them part of the obligations of obliged entities. We help you set up your compliance system.
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Definition
What are financial sanctions?
International financial sanctions, also called restrictive measures, are foreign policy tools that impose economic restrictions on persons, entities, groups or states: freezing of funds, a ban on making resources available to them, or limits on certain transactions.
They are mainly imposed by the UN (Security Council resolutions) and the EU (under the Common Foreign and Security Policy, or CFSP, through directly applicable Regulations). In Spain, Law 10/2010 incorporates them in its Art. 42, and its implementing regulation develops them. The competent authority is the General Secretariat of the Treasury.
Law 10/2010 · Art. 42
Royal Decree 304/2014 · Arts. 47–49
EU Regulations
Where they come from
Who imposes sanctions
The lists you need to monitor do not come from a single source. It helps to know where each regime originates and how far it reaches in Spain.
European Union
Under the CFSP, the EU adopts restrictive measures through directly applicable Regulations, either on its own initiative or to implement UN resolutions.
Spain (Treasury)
The General Secretariat of the Treasury is the competent authority. It handles authorizations and releases of funds and can adopt countermeasures through the Council of Ministers.
About OFAC: as a general rule, the OFAC (US) lists are not directly applicable in Spain, but they can have a practical effect when there is a US nexus (US dollar transactions, correspondent banks). Keep them in mind in your risk analysis, without confusing them with your legal obligations under EU and UN sanctions.
What the law requires
Your obligations as an obliged entity
Financial sanctions impose specific duties that are built into the AML/CFT system of Law 10/2010.
Freeze or block fundsImmediately immobilize the funds and economic resources owned, held or controlled by designated persons or entities.
Do not make funds availableA ban on providing funds, financial assets or economic resources, directly or indirectly, to designated persons.
List screeningScreen customers and counterparties against sanctions lists at formal identification and throughout ongoing monitoring.
Report to the TreasuryNotify the General Secretariat of the Treasury immediately and in writing of any freezing or blocking carried out.
Authorization of transfersSubmit certain transfers for prior Treasury authorization and apply for the release of funds where appropriate.
Procedures and recordsBuild screening into your AML manual, automate it where possible and keep an audit trail of screenings and decisions.
Important: failing to freeze or block funds, or making resources available to designated persons, is a very serious infringement under Law 10/2010. Sanctions compliance is therefore a top-priority risk.
What to do
What to do if there is a match
If screening flags a possible match with a sanctions list, the response protocol must be defined in advance.
01
Verify the match
Confirm whether the list match is genuine or a false positive by analyzing the available data on the customer or the transaction.
02
Freeze immediately
If the designation is confirmed, immobilize the funds and resources without delay and refrain from executing the transaction.
03
Report to the Treasury
Send written notice of the freeze to the General Secretariat of the Treasury with the required information.
04
Document and follow up
Keep a record of every step and, where applicable, file the application for authorization or release of funds.
Not to be confused with reporting to SEPBLAC: a sanctions freeze is reported to the Treasury, while suspected money laundering is reported to SEPBLAC. The same situation can trigger both channels, so you need to be clear on how each one works.
Specialist support
How we help
We support obliged entities and businesses with international exposure in building sanctions compliance into their day-to-day work.
Sanctions policy
We design your sanctions compliance policy and procedures and build screening into your AML manual.
Match analysis
We help you resolve alerts and false positives and decide when you need to freeze funds and report to the Treasury.
Treasury filings
We prepare freezing notices and applications for authorization or for the release of blocked funds.
Is your company exposed to sanctions?
We review your exposure, set up screening and define your protocol for freezing funds and reporting to the Treasury.
Frequently asked questions
Financial sanctions: common questions
What are international financial sanctions?
They are restrictive measures imposed by the UN and the EU on persons, entities or states: freezing of funds, a ban on making funds available to them and limits on certain transactions. In Spain, they are incorporated in Article 42 of Law 10/2010.
Who is bound by them?
EU sanctions are directly applicable and binding on everyone: individuals, companies and, in particular, obliged entities under Law 10/2010, which must apply them in their operations.
What does freezing or blocking funds mean?
It means immobilizing the funds and economic resources of a designated person or entity, preventing any movement, transfer or use unless the Treasury authorizes it.
Who must the freeze be reported to?
To the General Secretariat of the Treasury and International Financing, in writing and immediately. This is separate from suspicious transaction reporting, which goes to SEPBLAC.
Do the OFAC lists apply to me?
As a general rule, the OFAC (US) lists are not directly applicable in Spain, but they can have a practical effect when there is a US nexus (dollars, correspondent banks). It is advisable to factor them into your risk analysis.
What happens if I do not comply?
Failing to freeze or block, or making funds available to designated persons, is a very serious infringement under Law 10/2010, with a severe penalty regime.
Can I release blocked funds?
Yes, but only by applying to the Treasury and when the required conditions are met (for example, basic expenses or specific authorizations). Release is not automatic.
Does this only affect banks?
No. It affects all obliged entities and, in fact, any person or company, because the prohibitions in EU Regulations apply generally, not just to the financial sector.
Contact
Book a call
Tell us about your situation and we will guide you on sanctions screening, freezing of funds and reporting to the Treasury.
International financial sanctions in anti-money laundering compliance
Compliance with international financial sanctions is one of the most sensitive obligations in the AML/CFT framework. Unlike money laundering, which is based on suspicion, sanctions work on closed lists of designated persons and entities: if there is a match, you must act immediately.
Legal framework
Restrictive measures originate from the UN (Security Council resolutions under Chapter VII of the Charter) and from the EU, which adopts them through directly applicable Regulations under the CFSP. In Spain, they are incorporated in Article 42 of Law 10/2010 and developed in Arts. 47–49 of Royal Decree 304/2014 (authorization of transfers, freezing and blocking, and release of funds).
Obligations and competent authority
Obliged entities must freeze or block the funds of designated persons, not make resources available to them and immediately report the freeze to the General Secretariat of the Treasury and International Financing. To do this, they build list screening into customer identification and ongoing monitoring.
Penalty regime and countermeasures
Failing to freeze, or making funds available to designated persons, is a very serious infringement. In addition, the Council of Ministers may adopt financial countermeasures (limiting capital movements or making them subject to authorization, or freezing the funds of nationals or residents of a third country). Always keep the Treasury channel (sanctions) separate from the SEPBLAC channel (suspected money laundering).
Anti-money laundering
Key roles and controls
Areas and resources
Official sources
Key legislation, linked to the official text:
- Law 10/2010 of April 28 on the prevention of money laundering and terrorist financingBOE · consolidated text
- Royal Decree 304/2014 of May 5 approving the Regulations implementing Law 10/2010 of April 28 on the prevention of money laundering and terrorist financingBOE · consolidated text
Legislation and links reviewed in .