What is compliance and why is it important when opening an account?
Opening a bank account in Spain often seems simple, but it hides a few challenges. The main “invisible” problem is compliance – a system of checks combating money laundering and financial crimes. These requirements can significantly slow down the process and may require additional documents. In this article, experts from Laduchi Consult explain the less obvious issues and offer practical advice on overcoming them.
What is compliance and why is it important when opening an account?
It is a system of measures and procedures to ensure adherence to legal requirements and standards set at national and international levels.
In the context of opening a bank account in Spain, compliance refers to a set of rules and standards that banks are required to follow to prevent crimes such as
money laundering
terrorism financing
tax evasion.
Passing bank compliance is also necessary when verifying funds for a Spanish bank.
Features of Opening an Account in Spain
Customer Identification (KYC)
Banks are required to conduct a “Know Your Customer” (KYC) procedure, which requires clients to provide documents that verify their identity.
This can include a
passport
a tax identification number (NIE for non-residents).
Source of Funds Verification (AML)
Financial institutions must not only identify customers but also verify the source of their funds and analyze transactions. For example, as part of Anti-Money Laundering (AML) efforts, they need to establish where the funds that the client plans to deposit into the account are coming from.
This may require
providing statements from other accounts
tax returns
property sale contracts
other documents that confirm the legal origin of the funds.
Hidden Barriers Related to Compliance
Additional Checks for Non-Residents
Non-residents undergo stricter checks as banks aim to reduce risks associated with international transactions.
During this process, the following occur:
Verification of citizenship and legal status
Request for additional financial data
Prolongation of the process
Increased documentation requirements
Banks may request additional documents, such as:
Confirmation of tax residency
Financial history
Statements from other banks
For companies — a detailed description of the ownership structure
Restrictions for citizens of sanctioned countries
If the client belongs to high-risk or sanctioned countries:
Refusal to open an account is possible
Or a very lengthy verification process
Additional requirements to confirm the source of income
Refusal without explanation
According to compliance rules, the bank has the right not to explain the reason for the refusal in detail if it considers that there is a risk or non-compliance with the requirements.
How to Successfully Pass Compliance Checks When Opening an Account
Preliminary Document Preparation
Before approaching a bank, gathering a complete set of documents is essential.
passport
tax identification number (NIE for non-residents)
financial documents
Transparency of financial flows
prove the legal origin of your funds.
This may include
bank statements
tax returns
sales contracts, and other contracts.
The clearer your income path, the fewer questions the bank will have.
For example, when opening an account and depositing over 500,000 euros for one of our clients, we prepared and submitted detailed income reports for the last 7+ years.
Choosing the Right Bank
Not all banks are equally strict regarding compliance procedures. It is advisable to consider several banks and choose one that has more experience working with foreign clients and offers more flexible terms.
Conclusion
Opening a bank account in Spain requires a careful approach to compliance issues. This is not only a legal requirement but also an important step in ensuring the reliability and transparency of your business.
By consulting with the experts at Laduchi Consult, you will receive comprehensive support throughout all stages of the process, allowing you to focus on growing your business without worrying about the complexities associated with compliance.