Law 10/2010 of Prevention of Money Laundering and Terrorist Financing In its article 2.1, it includes who are the subjects bound by this rule, including in its letter x) the Foundations and Associations.
This leads us to consider two fundamental questions:
By the mere fact of having an association, will I have to comply with a money laundering prevention protocol?
And if my association does not commit a money laundering crime, do I also have to comply with this rule?
Both answers are affirmative. We explain why.
We must start by knowing that Law 10/2010 is a legal norm, so all entities whose corporate purpose is included in the aforementioned article must comply with the specifications of the norm.
That said, we must keep in mind that Not all obligated subjects will have to comply with the same requirements. We must attend to the specifications not only of the standard, but also of its Regulation, Royal Decree 304/2014, of May 5.
To focus on Foundations and Associations, we must keep in mind article 39 of the Law and article 42 of the Regulations. Now, the fundamental question to know if an association has a real risk is determine whether or not you receive donations from third parties. This is the key to knowing if our company could really be a focus of use for the commission of said crime, a fact that the aforementioned Law aims to prevent.
As specialists in the prevention of money laundering, we must not only know whether or not there are donations, but also the amount of these and whether there is compensation for this donation. By consideration we mean that some Associations and Foundations, for the fee received, provide a small service (for example, access to a platform or courses...). In the event that the donation amount is less than €100 or, failing that, a consideration is provided for the payment received, an expanded associate admission protocol should not be carried out. It will be enough to register your name, surname and your identity document, in order to keep track.
What if the association does not provide compensation and, on numerous occasions, the payment exceeds €100?
In this case, We must carry out a complete member admission protocol, not only identifying them but also knowing the origin of those funds that are being allocated to the association.
To really know what the parameters are to establish a good action protocol in this matter, we must have a risk self-assessment report, through which the person specialized in the matter must inform the company of what its risks are and establish all the necessary control measures through a Manual on the Prevention of Money Laundering and Financing of Terrorism.
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