Spanish Exchange Control and Money Laundering Legislation Reformed

On July 5, 2003, Law 19/2003 on the legal system governing capital movements and financial transactions with other countries and on certain measures for preventing money laundering (the "Law") was published in the Official Gazette.

This Law amends regulations of particular importance, especially for banks. In this respect, the Law replaces the former regulations of the legal system for exchange of currencies, which, for the most part, have been abrogated, with the aim of incorporating the terms of the Treaty establishing the European Community into Spain’s legal system.

In this context, the following is a series of observations that deal systematically with the most important aspects introduced by the Law into the legal system governing capital movements and financial transactions with other countries and prevention of money laundering.