Confirmation of Funds in Spanish Banks

Updated: 2025.06.19

Contents

• What Complicates the Confirmation of the Funds' Origin in Spain?
• How Can the Origin of Funds in Spain Be Confirmed?
• What Documents Does the Bank Request When Depositing Money into an Account?
• Actual Case: Confirmation Process of Cash Origin in Spain

Going through the bank compliance procedure represents a significant barrier for many immigrants, especially when doing business or investing. This barrier arises because of the strict requirements governing the origin of funds, which are imposed both at the national and international levels of legislation, taking into account the fight against money laundering and terrorist financing.

In this article, Laduchi Consult experts will discuss the main challenges immigrants face in addressing this issue. Importantly, we will use a real-life situation that you might find yourself in to examine methods that will enable you to confirm the legality of your funds by the legislation of this sunny country.

What Complicates the Confirmation of the Funds' Origin in Spain?

1. Declaration of cash when crossing borders
   The legislation of the Kingdom requires foreigners to declare cash amounts exceeding 10,000 euros when crossing the boundaries of the European Union. However, even after the declaration, tax authorities may conduct additional checks to ascertain where, how, and when the money was earned. This rule can become a significant barrier for immigrants, especially those carrying large sums for investments or real estate purchases. Non-compliance with this requirement can lead to delays in border control and even confiscation of funds, creating additional difficulties and stress for immigrants. Therefore, thorough preparation for this stage is necessary, ensuring the availability of all the required documents and evidence of the legality of funds for successful passage through border control.
2. Strict supervision by legislation and financial institutions
   According to Spanish legislation, particularly Law No. 10/2010 on the Prevention of Money Laundering and Terrorism Financing, banks must carefully monitor the source of clients' funds. This means that financial institutions must have digital copies of certain personal documents of clients, analyze financial transactions, verify the legality of the source of income, and identify possible signs of money laundering.

The absence of necessary documentation or suspicious transactions can lead to severe consequences for the client and the bank. Clients may face refusal to conduct operations, account blocking, or even suspicion of involvement in illegal activities. For banks, this entails the risk of reputation damage and possible fines for violating regulations.

How Can the Origin of Funds in Spain Be Confirmed?

Compliance Department: Guardian of Legality in the Banking Sector

Banking compliance is crucial in ensuring legal compliance and preventing financial crimes. Its primary function is meticulous monitoring of every transaction. When considering new clients, even before opening an account, the bank conducts extensive checks to verify the legality of its activities and eliminate possible fraud cases. The compliance department monitors the client's actions even after the account is opened. In case of suspicious or unusual transactions, the bank requests additional documents to confirm the legality of the funds.

This strict control allows the bank to respond to potential threats and prevent possible financial crimes promptly. If a client's activity appears illegal or suspicious, the service may be temporarily suspended until additional evidence is provided.

Since 2025, Spanish banks have required bank statements showing account activity for at least the last 6 months, including the client's name. In some cases, income sources for the past 1 to 3 years are also requested, especially when opening an account with a large deposit or for investment purposes.

Laduchi Consult experts are ready to provide you with the necessary support to confirm the origin of your funds! Leave your contact number and a brief description of the situation, and our team will contact you to provide a detailed consultation and develop an individual action plan. Trust our experience and professionalism to resolve your task successfully.
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What Documents Does the Bank Request When Depositing Money into an Account?

When depositing or transferring funds to a bank account, several documents are required to confirm that the funds were obtained legally:

• Proof of identity (foreigner identification number, passport, etc.).
• Income information and tax declarations.

  For example:

  - Confirmation of current salary (not older than 3 months);
  - Employment certificate issued by the employer;
  - Earnings statement, pension, or benefits;
  - Income tax declaration for the last year;
  - Valid employment contract;
  - Declaration of inclusion in the taxpayer registry;
  - Registration of activities with the revenue service;
  - Last annual or quarterly declaration for VAT or income tax;
  - Confirmation of social security payments for individual entrepreneurs.

• Documents on real estate and assets
  Suppose the money was obtained from selling real estate or other assets. In that case, the bank may request the submission of relevant documents, such as sales contracts, property ownership certificates, etc.
• Other documents and declarations
  Depending on the specific circumstances and the bank's requirements, other data may be required, such as statements from previous bank accounts from which the funds were transferred or statements signed by the client stating that the funds provided by them have a lawful origin and are not related to criminal activities.

This will help the bank ensure that the funds do not result from questionable or illegal transactions and that they comply with declared tax obligations.

Actual Case: Confirmation Process of Cash Origin in Spain

Situation:

An entrepreneur from Ukraine approached Laduchi Consult to confirm a significant amount of cash funds. Cash is a common, convenient, and legal payment method in his home country without any restrictions, which significantly differs from the rules of cash usage in the Kingdom. For example, in Ukraine, business owners can freely use cash to pay employee salaries, interact with suppliers, and conduct other financial transactions. In Spain, however, any cash transactions exceeding 1,000 euros are prohibited by law. This difference in approaches creates difficulties for citizens arriving in Spain with large cash sums legally accumulated in their countries.

Solution:

After careful study of the legislation and consultation with our Catalan partners - bankers of central Spanish banks, we found an optimal solution. We prepared and presented detailed income reports for the client for the past ten years, documentation on the activities of his Ukrainian companies, and statements from personal and corporate accounts to demonstrate the movement of funds, as required by law. After reviewing and translating all this information into Spanish, we compiled income and expenditure tables for the entire period and determined the client's actual funds balance. This allowed local bankers and compliance departments to understand Ukrainian declarations better and see real income in euros. We further agreed with the banks about depositing two family members totaling more than €1,000,000. This allowed the client to legally keep his funds and use them in the future with minimal tax risks for specific transactions, such as investing in buying real estate or setting up a business in the Kingdom to pay for his children's education.

Result:

The banking compliance process took about four months and included coordinating the opening of accounts in three different banks to diversify risks. Based on our detailed income report for the client and justification that the funds in Ukraine were earned legally, each bank approved the deposit of funds ranging from 350,000 to 400,000 euros. This became possible thanks to our thorough risk assessment at all levels, from banking procedures to legal aspects, understanding compliance department requirements and Spanish legislation. We provided the bank with an extensive documentary base for analysis, and only after receiving confirmation from each financial institution did we proceed with the account opening and fund deposit process. This approach helped the client avoid problems with banks or the tax authorities, ensuring comfortable and secure financial transactions. As a result of our work, the client acquired high-value real estate in Spain, with Laduchi Consult experts also providing the necessary support. We will tell you more about this in our next legal support case for real estate purchases.

Conclusion

Confirming the origin of funds in Spanish banks is a complex and multi-stage process that requires careful preparation and understanding of the legislation of both the country of residence and the country of fund origin. However, along with challenges come opportunities to solve these problems. The Laduchi Consult team is ready to provide expert assistance in overcoming these difficulties. Our experience, knowledge of local laws and procedures, and understanding of client's needs allow us to offer a comprehensive solution, including preparing necessary documents, consulting on action strategy, and direct support in communication with banks and financial institutions.

We guarantee a professional approach to each case, ensuring the security and legality of financial transactions at all stages. Our goal is to help clients successfully implement their business projects and investment strategies in Spain, bypassing the complexities and risks associated with confirming the origin of funds.

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