Improving the detection and reporting of suspicious financial transactions: the Spanish case
| DOI | https://doi.org/10.1108/JMLC-09-2021-0095 |
| Published date | 14 December 2021 |
| Date | 14 December 2021 |
| Pages | 882-892 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Joel Harry Clavijo Suntura |
Improving the detection and
reporting of suspicious financial
transactions: the Spanish case
Joel Harry Clavijo Suntura
Law School, Isabel I of Castile International University, Burgos, Spain
Abstract
Purpose –The purpose of this paper is to analyzethe obligation of regulated entities to detect unusual and
suspicious transactionsand to report them to external control bodies, as establishedby the Financial Action
Task Force (FATF) recommendations,the European Community Directive and also the Spanish regulations
for the Prevention of Money Laundering. This research paper also aims to create a model to identify and
report suspicioustransactions to improve financial institutions’currentprocedures.
Design/methodology/approach –According to the Spanish regulationswhich comply with the FATF
recommendationsand the European Community Directive on the Preventionof Money Laundering, regulated
entities must detect unusual andsuspicious transactions. Within this framework, the present researchwork
analyzes both criteria and proceduresused by the regulated entities to report suspicious operations. It also
assesses the efficiency of the reports sentto an external control body. For this purpose, both analytical and
interpretativemethods are used in this research paper.
Findings –In Spain, the current procedures followedby regulated entities to analyze unusualtransactions
are complex. This results in difficulties to reportsuspicious transactions involving money laundering. Asa
consequence, the cases of suspicioustransactions reported to the external control body are often unclear and
the relatedprocess is inefficient.
Originality/value –The creation of a harmonized model withthe aim of detecting suspicious operations
and analyzing them will improve the detectionand the effectiveness of the suspicious operations procedure
which are reported to the external control body.However, such unified model should take into account the
currentlyused activities proposed by each financial institution.
Keywords Spain, Detection, Operations, Report, Suspicious, Unusual
Paper type Research paper
1. Introduction
Nowadays, criminal organizationshave access to almost unlimited resources and organized
crime has become highly sophisticated. As a result, criminal operations and transactions
involving money laundering are mostly quick and efficient. This fact makes both police
work and judicial prosecution harder (Rebollo Vargas, 2013). In Spain, the detection of
unusual transactions that meets the criteria necessary to be reported to the external control
body as suspicious is to be reportedto the “Servicio Ejecutivo de la Comisi
on de Prevenci
on
de Blanqueo de Capitales e Infracciones Monearias”(SEPBLAC) –Executive Service of the
Commission for the Prevention of Money Laundering and Monetary Violations. Therefore,
the work of this entity is paramount in the field of moneylaundering prevention.
This process of detection has also to be faultless because a suspicious operation report
which does not include hard evidence will end at the nextstage of investigation. Besides, it
can even be counterproductive. Indeed, whileit may not prevent or punish illegal activities,
The article is the result of an unfunded research project.
JMLC
25,4
882
Journalof Money Laundering
Control
Vol.25 No. 4, 2022
pp. 882-892
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-09-2021-0095
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