What is AML?
AML — anti-money laundering — is the framework of laws, controls and procedures that obliged businesses must apply to prevent criminal proceeds from entering the legitimate economy. For real estate it means a documented risk assessment, customer due diligence, screening, source-of-funds checks, staff training, recordkeeping and reporting suspicious activity to the financial intelligence unit.
Written by Andréas Hobbelin · Last updated
The legal framework
Spain: Ley 10/2010 de prevención del blanqueo de capitales y de la financiación del terrorismo, developed by Real Decreto 304/2014, supervised by SEPBLAC. Portugal: Lei 83/2017. Both implement the EU anti-money-laundering directives, and both will be affected by the EU AML Package and the new authority, AMLA.
What an AML programme contains
An AML programme is more than client checks. A supervisor will typically look for:
- A written business-wide risk assessment specific to your firm, clients and geography.
- Internal policies and procedures (manual de prevención) that are actually followed.
- Customer due diligence applied consistently, with simplified or enhanced measures where justified.
- PEP, sanctions and adverse-media screening with documented match resolution.
- Source-of-funds and, where relevant, source-of-wealth evidence.
- An appointed representative before SEPBLAC and staff training records.
- Suspicious-activity reporting and the ability to reconstruct any file on request.
Why real estate is a focus sector
Property transactions are high-value, involve non-resident and corporate buyers, and can absorb large sums in a single movement. That combination places real estate in the higher-risk category in both national and supranational risk assessments — which is why agents, developers and intermediaries are named obliged subjects rather than optional participants.
AML is a shared process, not a delegated one
Different parties in a transaction hold overlapping information but separate liability. Sharing structured due-diligence data reduces duplication and delay. It does not transfer responsibility: each obliged subject still makes and records its own AML decision.
Frequently asked questions
Are real estate agents in Spain obliged subjects?
Yes. Real estate agents and intermediaries are explicitly covered by Ley 10/2010 and must apply the full set of AML obligations, including risk assessment, customer due diligence and recordkeeping.
What happens if AML obligations are not met?
Sanctions under Ley 10/2010 range from fines to serious administrative penalties, and gaps are typically discovered through documentation review rather than through a specific transaction.
Does using AML software make a firm compliant?
No. Software structures, evidences and speeds up the process. Compliance remains the obliged subject's own responsibility, including the final decision on every client.
Sources and further reading
Put this into practice
PropComply structures KYC/CDD once per client and shares it securely with the parties in the transaction — each keeping their own independent decision.
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